According to the Conference Board of Canada's How Canada Performs analysis of income equality, the richest Canadians increased their share of total national income, while poor and middle-income individuals have lost ground since 1993.
Although income levels for the poorest Canadians rose, the gap between the rich and poor in Canada widened.
The analysis noted that the average Canadian is better off than he or she was a generation ago. In 1976, average income was $51,100; by 2009 it was $59,700—an increase of 17% over 33 years, after adjusting for inflation.
However, the median income – the income level that divides the group into two equal parts – grew by only 5.5% over the same period.
The average income for the poorest Canadians increased to $14,500 in 2009 from $12,400 in 1976.
However, the gap between the average income of the richest Canadians and the poorest grew to $117,500 in 2009 from $92,300 in 1976.
Anne Golden, president and CEO of the Conference Board, said “While the poor are minimally better off in an absolute sense, they are significantly worse off in a relative sense.
“High inequality raises two questions. First, what is the impact on the economic well-being of a country? The answer is that high inequality can diminish economic growth if it means that the country is not fully using the skills and capabilities of all its citizens or if it undermines social cohesion, leading to increased social tensions. Second, high inequality raises a moral question about fairness and social justice.”
Jennifer Harrison