Income Gap Widens in Canada
Oct 23, 2008
The gap between the rich and poor in Canada widened significantly in a recent 10-year period partly because Ottawa spent less on cash benefits than many other developed countries, the Organization for Economic Co-Operation and Development (OECD) says.
It was a reversal of the trend in the two previous decades when the gap was narrowing, the OECD said in a report.
The report said both Canada’s poverty and income inequality rates spiked between 1995 and 2005 until they both exceeded the 30-member organization’s average.
The organization said Canada experienced an especially rapid increase in both numbers; only Germany’s gap widened at a comparable rate.
The study found Canada’s well-to-do enjoyed a more substantial income than their counterparts in other developed countries. The report said Canadians in the top 10 per cent income bracket were earning an average of $71,000, more than 30 per cent higher than the OECD average of $54,000.
While the average incomes for Canada’s middle and lower classes also exceeded the OECD average, the margin was less pronounced at 18 per cent.
The OECD attributed the widening gap in part to the Canadian government’s spending policies.
"Canada spends less on cash benefits such as unemployment benefits and family benefits than most OECD countries," the report said. "Partly as a result, taxes and transfers do not reduce inequality by as much as in many other countries. Furthermore, their effect on inequality has been declining over time."
The OECD said the rate of people living in poverty, or earning less than half the organization’s average income, rose to 12 per cent during the study period, an increase of up to three percentage points. While the report found only six per cent of seniors were impoverished, it said 15 per cent of Canada’s children were living below the poverty line.
But the study praised opportunities for social mobility in Canada, saying children of poor families stood a better chance of improving their circumstances over time.
OECD Secretary-General Angel Gurria urged all governments to address the "divisive" issue of growing inequality, adding that efforts to educate the country’s entire workforce rather than the elite were necessary to level the playing field for future generations.
"Greater income inequality stifles upward mobility between generations, making it harder for talented and hard-working people to get the rewards they deserve," he said in a statement. "It polarizes societies, it divides regions within countries, and it carves up the world between rich and poor."
The Paris-based OECD is a group of 30 mostly developed countries that aims to promote economic growth and help governments fight poverty.
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This is nomination speech from Convention 2008 for our sister Kelly Ann Ivory. We have had a great loss in our union and we wish you well sister, we know that you will continue to be a trade unionist and go on to bigger and better horizons. In solidarity. "Good Morning Sisters and Brothers My name is Judi Bauer, local President at the Society for Manitobans with Disabilities and Area 6 Director representing Home Care, Health Care Support and Community Agencies on the Board of Directors. I am here this morning feeling very grateful and proud to be associated with this Union for many reasons a few being the education, guidance and support my local and I as relatively new MGEU activists have received over the last 8 years. Kelly-Ann Ivory has been instrumental in facilitating this journey for us as she has for many other locals and has done so in a way that clearly demonstrates her abilities as a RESPONSIBLE AND EFFECTIVE leader. She is a SKILLED COMMUNICATOR who isn’t afraid to take on the most challenging initiatives and is able to build and motivate productive and dynamic teams to get the work done. Just look at the numerous standing committees and working groups Kelly-Ann has been involved with such as the MGEU and MFL Women’s committees, the Human Rights and Equity Committee and now our Membership Education committee. Kelly-Ann’s COMMITMENT AND DEDICATION to the membership is tireless and I am often in awe of her ability to balance her family, work and Union commitments even during the most personally challenging times. Whether it is walking an information picket, participating at local meetings or organizing special events, throughout the year she does it and she does it well. As a leader, Kelly-Ann possesses broad knowledge, relevant experience and clear vision coming from 18 years of education and activism from local to national levels. Her labour education is extensive and most recently Kelly-Ann was selected from 300 applicants to represent Manitoba in the Governor General’s Canadian Leadership Conference based on her capacity and aptitude for leadership; ability to contribute to effective team work and strong interpersonal and critical thinking skills. Possessing knowledge is one thing. Kelly-Ann shares it effectively and has a positive and enthusiastic leadership style that is proactive, accessible, inclusive, and always committed to empowering members with information. We can always count on her to get the message out and she believes the strength of our Union depends on diverse experiences and ideas, combined abilities, knowledge and collective efforts. Her vision to improve Membership Education programs, ensure more effective communication throughout the Union, build competencies of our new and existing members and increase representation at the Local, Area and Component levels is already in progress and I am convinced Kelly-Ann will continue to hear our voices and confident her vision is reflective of issues brought forward by members across the province. Sisters and Brothers, in closing I ask that you join me in re electing Kelly-Ann Ivory for 3rd Vice President."
A Sad Sister - 2008-10-27 17:10