P.11 because, to maintain a high level of economic integration, each party of the economic association must be able to modify its policies. Economic union with political integration also provides the structural basis for the sharing of income. The facets of economic union that facilitate the relatively free flow of people, goods, services and capital have had an enormous impact not only on the structure of economic activity in Canada, but also in raising Canadians' incomes. Economic union raises productivity and incomes by making available a much larger market for producers in all provinces than the limited market. The size of the market made by economic union is also important for generating Canada's bargaining clout. Canada is the seventh largest industrial economy in the world. "Economic union helps to smoothen the impact of economic shocks, such as the grain price shock of 1986 - to the benefit of all Canadians. This is accomplished by providing stabilization and insurance benefits to the provinces. The economic union provides insurance benefits in the Canadian regions. With the many industrial structures across provinces, the insurance principle is very important to the Canadian economy. The stability of Canadian economy gives benefits to all Canadians."14 14 Statement On The Next Federal Budget, Ottawa, 1983, P.12

P.7 it because they predict that the free trade will destroy the economy of Canada. Moreover, investors are transferring to the U.S. because there is lower cost. Free trade is another big reason for Canada's recession. EDUCATION AND ECONOMY "Chart A ( provided at the end of the report), shows that the university tuition fee price index went up 120% for all of Canada in the past ten years. This is the result of the withdrawal of government funding. Individuals must pay the difference. Federal spending in support of education and training fell by 7.6% in 1990-91 over spending in 1989-90. The portion of the federal budget going to education and training has dropped from 7.3% in 1985-86 to 6.4% in 1990-91."9 The share of federal funds going to provincial and territorial governments for education and training has dropped from 56% in 1984-85 to a low of 41.7% in 1990-91. The budget reflects that Canada is in a tough economic situation. Cutbacks are necessary in order to spend less money. In a sense, the budget is a mirror of the economy. An increase of services or spending indicates a good economic situation. A decrease of services or spending indicates a decline in the economy. One of the solutions 9 Cynthia Wiggins, "Death by 1000 cuts: Public services in peril," CLC Today, 1992 February issue, P.5 P.8 to survive during a tough economy is to cut back on educational spending. "Some people believe that the government is heading towards the privatization of education. Education is considered to be a basic human right. The necessary educational programmes and funding must be put in place to encourage lifelong learning."10 However, insufficient funding is being spent on education by the federal government. The labour unions keep protesting the retrenchment strategy on education. Knowledge means wealth to the country. If the workers are not well educated, they may produce poor quality goods. As a result, the country will lo

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