The Critical Compass Podcast - August 19, 2026


Equalization is Money Laundering w⧸ 222 Minutes


Episode Stats


Length

9 minutes

Words per minute

146.05

Word count

1,327

Sentence count

48

Harmful content

Toxicity

14

sentences flagged

Hate speech

3

sentences flagged


Transcript

Transcript generated with Whisper (turbo).
Toxicity classifications generated with s-nlp/roberta_toxicity_classifier .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 equalization is tricky because um it comes from a place of compassion of people saying like well
00:00:08.200 we're one country we love everybody in the country and we should help our fellow neighbors
00:00:12.540 but with the layers of bureaucracy and the the fact that there's no real accountability like
00:00:21.000 i i don't want to i don't feel charitable when there's all these intermediate steps involved
00:00:26.860 And when Dennis Kelma was working with the APP to create the value of freedom document, they had to pull from multiple sources just to get an accurate picture of what inflows and outflows there actually were.
00:00:43.060 Let it be from StatsCan or CRA.
00:00:46.500 And even that, they kind of like, well, it's hard to tell because that kind of overlaps here and it's not a clear picture.
00:00:54.120 That's on purpose.
00:00:54.560 There's no reason.
00:00:55.500 No, there absolutely is a reason. And that's because it obfuscates it, right? Because the simplest answer would be that we would all have like a little brother, little sister type thing in Quebec where every year we could each cut a check to Jacques Lemieux for $5,000.
00:01:14.920 okay that would be the simplest answer and that would be it but that would be very stark and very
00:01:22.020 easy to interpret and it would remove all the ambiguity in the gray area the gray area exists
00:01:27.540 because it obfuscates and i gotta push back a little bit james i love you guys but i don't
00:01:34.800 buy into the whole it comes from a good place that's just sexy marketing that's just well we
00:01:40.600 need to make sure that different parts of Canada have roughly equal access to things like healthcare
00:01:46.400 and education. There's a difference between stated intentions and outcomes. There's a huge
00:01:55.320 difference. And that's one thing that has come up when I've been talking with people who are on the
00:02:00.640 pro-federalist side. They'll say things like, the reason why this exists this way is because, and
00:02:06.580 then they'll say something along those lines, depending on what it is we're talking about.
00:02:10.600 And the point I push back on in that is that it doesn't really matter why you say you're
00:02:18.900 going to do something.
00:02:19.620 The point is to look at the actual net effect of having done it, okay?
00:02:24.140 Because otherwise, the classic abusive husband, I hate you because I love you, oh, well, I
00:02:30.240 guess you can't get mad at that, can you? 0.88
00:02:32.880 Yeah.
00:02:33.420 And not to say that I personally believe it's structured in a way like it's, I don't think
00:02:40.480 the foundations of it is truly out of a good place but i believe people support um equalization
00:02:48.000 because they're saying it comes from a good place so i can understand the relatively uninformed
00:02:55.100 person or somebody who hasn't stress tested these ideas that's a great way to put it easy for them
00:03:00.440 to feel that it comes from a good place and i can recognize that um when engaging with somebody
00:03:08.440 in this topic, because without unpacking anything, I can't assume
00:03:13.720 malice from the average person. They just see it as we're one big family, therefore we have to help.
00:03:22.240 Yeah. The thing about it is, though, is we're not one big family. There's some huge fundamental
00:03:27.540 differences between people in the West and the rest of Canada. And when I say the West,
00:03:35.920 I mean I don't mean the prairie provinces because Manitoba for the large part does not fit in with Alberta and Saskatchewan and I don't mean BC except for the northeast part basically the as much as I hate the Rockies because I'm originally from Saskatchewan and I think they should all just be chopped down and you could grow barley but but they've done something really unique in this country in that they created this big wall where if you wanted to go all the way to that wall
00:04:05.920 there were so many places to get off the train a couple of hundred years ago where you'd just be
00:04:10.780 like, ah, you know what? Screw it. Close enough. I'm going to be a fisherman. Screw it. Close
00:04:16.480 enough. I'm whatever along the way. And it's only the foolhardy. I can do this. Bring it on. Let's
00:04:25.960 make things happen. People that, that actually went as far as the shadow of the Rockies. And
00:04:33.880 every time someone got off the train before them they would say this is why no one will remember
00:04:38.320 your name and now you fast forward a couple hundred years because it's just been this
00:04:42.740 that's how it started and then you ended up with this self-selecting cycle where you know if somebody
00:04:49.180 born in this rough area said hey you know what good enough odds are they moved out east and
00:04:55.920 anybody born in sarnia or something like that who said you know what i think i think that i can do
00:05:03.000 better. And if I want to work hard enough, I can make a great life for me and my family.
00:05:08.200 And the place where I'm going to do that is the West. And so now you've got all these people
00:05:15.940 self-selecting over successive generations to where we're fundamentally different.
00:05:22.620 In the West, well, in the East, they vote for whoever's going to give them the most stuff. 0.97
00:05:28.520 and in the west we vote for whoever will fuck the most off and and those two are completely 0.99
00:05:37.640 incompatible because one of them just says just leave me alone and the other one says 1.00
00:05:42.940 all your base are belong to us and if you want to win those guys over you just give them our shit 0.98
00:05:50.960 and that's literally what equalization is that's how ei works that's how um that's how the pensions 0.93
00:05:57.580 work, pretty much any substantive monetary policy that exists across provinces ends up with the
00:06:06.420 money going east, not west. Or in the odd case, it's probably something where a trickle will come
00:06:13.120 this way in exchange for a torrent going the other way. But wait, guys, everyone in Canada
00:06:18.560 pays the same tax rate okay okay i i love this i i just you hear these dishonest things about how
00:06:32.880 equalization doesn't actually everyone pays the same well okay first off just on its head 0.97
00:06:39.720 if everyone already paid the same what in the great and grandiose fuck is there to equalize
00:06:45.560 how how could anything be equalized if everybody's already paying the same thing 0.92
00:06:52.540 okay secondly money is fungible okay it goes it's sure it doesn't directly go from 0.97
00:07:01.420 your pocket to buying a baguette in fucking quebec right that's not what happens it goes 0.87
00:07:07.800 through intermediary steps you pay your taxes to ottawa it moves from this slush fund to that 0.98
00:07:13.320 slush fund somebody takes a little off the top whatever's left some of it goes here some of it
00:07:19.080 goes there maybe it comes around a couple times and eventually it makes its way into gatineau
00:07:24.520 and there's actually in finance terms there's they actually have a word for this it's called
00:07:32.300 laundering yeah yeah fraud when you when you purposely obfuscate the origin of the money
00:07:39.140 and send it to some place in what seems like a legit way,
00:07:43.720 that's literally, this is the car wash from Breaking Bad.
00:07:47.920 Yeah.
00:07:48.460 This is what it is.
00:07:50.260 Okay, I get the fact, and I'm not disputing because they'll say,
00:07:53.100 well, you know, it's not like Alberta pays that money directly to Quebec.
00:07:57.600 Nobody claims that.
00:07:58.740 Nobody's claiming that.
00:07:59.820 But it's a straw man.
00:08:01.300 What we're saying is that our money dances around a few times
00:08:05.180 and eventually goes to the Expo or the Epcot Center
00:08:08.900 or whatever the hell it's called
00:08:10.000 and gets spent on poutine.
00:08:13.280 Like, if I scratch my initials on a loony
00:08:15.980 and then use that to pay my taxes,
00:08:19.260 eventually, eventually, it's going to be spent 0.64
00:08:23.260 on a shitty maple beer at some brassiere in Granby. 0.67
00:08:31.200 End of story. 0.77
00:08:35.180 Transcription by CastingWords