ARGUMENTS ABOUT INEQUALITY IN CANADA

Inequality in Canada



Inequality in Canada

Introduction

A broadly-held perception persists in Canada, encouraged and maintained by the media, that the country is somehow exceptional—kinder and gentler—with greater social equality than other countries, particularly the United States. In this new world, traditional concerns with greater equality of outcomes give way to a discourse focused on social inclusion. Even in its centre-left versions, the new paradigm places less emphasis on a more equal distribution of income as such. As Saint-Martin (2000, 43) points out, the dichotomy that orients the new discourse is not equality/inequality, but social inclusion/ exclusion; and Giddens (1998, 102) agrees that “the new politics defines equality as inclusion and inequality as exclusion.” The spotlight is thus trained on special barriers confronting vulnerable groups such as single parents, immigrants who have arrived in recent years, Aboriginal peoples, and disabled Canadians. It is important to underscore, however, that the new paradigm assumes that inclusion is achieved through movement into the paid labour force, and that growing inequality among paid workers is of secondary interest. 

The widening Gap

Recently released statistics from the 2001 Canadian census, combined with a report on wealth inequality based on earlier census data, shows a widening gap between rich and poor, with a sharp increase in the number of working people, notably immigrants and young people, earning less that $20,000 per year.According to a report commissioned by the Canadian Centre for Policy Alternatives, entitled Rags to Riches: Wealth Inequality in Canada, published in December 2002: “Canadians may view their country as a land of opportunity, but it is also a land of deep and abiding inequality in the distribution of personal wealth.” (Greenaway 2009)

Analyzing data from Statistics Canada's Survey of Financial Security and previous surveys dating back to 1970, the report details:

The wealthiest 10 percent of family units held 53 percent of the wealth in 1999. The wealthiest 50 percent of families controlled 94.4 percent of the wealth, leaving only 5.6 percent for the bottom 50 percent.

The poorest 10 percent of family units have negative average wealth, or more debts than assets. Average wealth, adjusted for inflation, for the poorest 10 percent declined by 28 percent from $8,031 in 1970 to $10,656 in 1999. (Myles Feng 2006)

By contrast, average wealth for the richest 10 percent of family units increased from $442,468 in 1970 to $980,903 in 1999—an increase of 122 percent. Moreover, the study demonstrates that poor families—notably lone-parent families and young people—gained little or lost ground. The findings include:

Family units headed by persons under age 25 saw their median wealth fall from $1,474 in 1970 to a mere $150 in 1999 after adjustments for inflation.

Lone-parent families, whether headed by women or men, saw their median wealth go from $1,870 in 1984 to $3,656 in 1999. (Harp Hofley 2008 ) The report highlights the changes in federal and provincial taxation policies that have conferred huge benefits on Canada's wealthiest individuals, while social safety nets and programs aimed at addressing poverty have been slashed: (Myles Feng 2006)

Registered savings plans, capital gains and stock dividends all get preferred ...