Inequality persists in Canada but improved during pandemic, The Canadian Business Journal

OTTAWA, Nov. 04, 2022 (GLOBE NEWSWIRE) — Canada’s Income Inequality Has Improved During the Pandemic, Despite Popular Belief That Inequality Is Widening, Canada Conference Commission Releases Analysis emphasized that wealth inequality has declined dramatically over the past two decades, while it has declined sharply over the past two decades. The analysis used the Gini coefficient and wealth distribution data to assess income inequality between households.

Pedro Antunes, Chief Economist of the Canadian Conference Board, said: “Inequality remains a problem in Canada, with women, racialized groups, new Canadians and Indigenous peoples facing tougher economic conditions.”

A study by the Council of Canada found that a variety of factors contributed to the decline in inequality in Canada. The Canadian Child Benefit (CCB), introduced in 2016, has played an important role in reducing child poverty. Old Age Security (OAS) and Guaranteed Income Subsidy (GIS) are helping to reduce poverty rates among the elderly. In addition, wealth inequality has declined, partly due to monetary policy, as low interest rates have boosted home ownership while pushing up house prices. This rising house price is boosting the wealth of low-income households more than high-income households.

Income inequality fell sharply in 2020, when the pandemic-related income support was created, but looking ahead, a study by the Council of Canada found that it could adversely affect recent inequality developments. It has been pointed out that there are many possible factors. Support from the pandemic was temporary while runaway inflation and rising interest rates eroded household budgets. Technological change and environmental transitions are also important factors that are destabilizing economies and leading to rising inequalities.

Despite our progress, Canada still has significant room to improve inequality compared to many countries. It remains quite large. There is also a large gap between Canada’s top earners and most Canadians.

Our tax system helps reduce inequality in Canada. Wages and salaries, capital gains, and investment income are clearly not evenly distributed, but a progressive income tax, coupled with numerous support and transfer programs implemented by federal, state/territory, and local governments, has created a competitive It helped level the playing field. As a country, we can build on the success of already established programs such as the CCB and OAS. Similar to these programs, a targeted, means-tested minimum income could help reduce inequality for more Canadians.

Providing accessible public health care and education also goes a long way in reducing inequalities and intergenerational mobility. Access to affordable childcare promised by federal and state/territory governments will also help close the income gap between men and women. Accessible childcare has been shown to enable women to increase their participation in the workforce and have a significant impact on reducing income inequality.

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About the Canadian Conference Board:

The Canadian Council of Congress is the country’s leading independent research agency. Our mission is to empower and inspire leaders to build a stronger future for all Canadians through trusted research and unparalleled connections. Follow the Canadian Conference Board on Twitter @ConfBoardofCda.

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