Canada's Inequality Problem

Canada’s Inequality Problem Introduction The unemployment rate within Canada is significantly low while the income gap between the poorest and the richest in Canada keeps rising. Also, an issue emerging prevails among the destitute and the very wealthy. Eighty 80 percent of families in Canada are not realizing a sufficient share of the economy. The struggles the poor go through are real. The widening gap in Canada is also quite real since it is currently no longer concerning the poor and the rich. It is mostly for the rich as well as the remaining parts of the nation. Moreover, a many Canadians are worried owing to the widening inequality gap. For instance, the economic insecurity is prevalent across the entire income spectrum. Whereas a large number of Canadians welcome interference by the government to end the issue of inequality, significant efforts still need to be employed (Flavella, 2014). Thus, the paper discusses the inequality problem in Canada based on how it has affected the political, social, cultural, and economic well-being of the country and its residents.

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Significance of the Issue The growing problem of inequality in Canada is essential to study owing to the notion that all people need cultural, social, and economic rights, which allow them to secure their individual dignity and freedom. All people are entitled to living standards that support adequate access to quality health care and well-being, including housing, clothing, food, medical care, as well as vital social services. They also have rights to security in the event of sickness, unemployment, widowhood, disability, and other unforeseen circumstances. Without social and economic rights, people would not realize real freedom within a democratic society (Canada2020, 2011). Therefore, each community needs economic and social rights to ensure that all individuals attain a life of dignity.

A fair, equal, and just society does not mean that all persons realize similar outcomes.

Rather, it entails that different individuals should be offered an opportunity to contribute to the community as well as free from any form of discrimination based on gender, race, or religion thereby allowing them to develop their capacities as well as talents to the broadest extent they can realize (Canada2020, 2011). In this sense, with the rising inequality problem Canada, it is apparent that the issue has attracted significant attention hence the need for devising effective ways of dealing with the problem thus result to an economy driven by equality, justice, and fairness.

Inequalities in Canada In Canada, several segments face unending drawbacks as well as lack opportunities in the country due to the growing inequality. It influences everything from people's health outcomes and overall communities in line with social cohesion. It also affects the nation's economic growth as well as Canadian's social mobility (ConfenceBoard, 2017). In this perspective, it is evident

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that the inequality in Canada is significantly bad and affects individuals in different parts of the society. Various forms of inequalities are therefore clear in Canada.

Health and Income Inequality Reports from the Canadian Institute for Health Information (CIHI) reveal that the opening between the health of top-income earners and low-income earners has risen significantly during the last decade in measures, including hospitalizations of severe illnesses, smoking, and the ways in which Canadians usually rate their individual mental health. A report from Statistics Canada stipulates that economic inequality is affiliated with premature deaths of around 40,000 Canadians annually. It amounts to approximately 110 Canadians who die in an untimely manner daily. When looking at the richest 20 percent of individuals in Canada with poorest 20 percent, people living with low income have 67 percent chances of dying annually unlike the case of their wealthy counterparts. Also, women in low income have around 52 percent higher chances (ConfenceBoard, 2017). In this vein, it is apparent that the inequality problem has significantly affected equality in care delivery considerably.

Wealth Inequality Leading to Economic Inequality Estimates carried out in 2012 reveal that top 10 percent of the Canadian population represented around half of the country’s wealth whereas the bottom 20 percent represented approximately one percent of the overall country’s wealth. Indeed, bottom 50 percent did not control over 6 percent of Canadian wealth. The average net worth (including assets of individuals) of top 10 percent of the people in Canada amounted to around $2 million, which represented a rise of approximately $600,000 from 2005. By contrast, the average net worth of Canadians at the bottom 10 percent was around negative $5,100, indicating that debts among individuals rose by over 150 percent from the negative $2,000 witnessed in 2005 (Canada2020,

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2011). Here, it is apparent that the top wealth individuals in Canada have significant control toward the economy while the bottom rich people appeared to contribute to negative influence toward the economy.

Social Inequality In Canada, economists often differentiate between inequality owing to the differences that exist in talent and effort, as well as because of the differences existing between circumstances. Most of these are beyond the control of individuals including race, gender, class, ethnicity, geography, sexuality, ability, age, religion, and migration status. In the viewpoint of economists, inequality within Canada emerges from differences that exist between opportunities when combined with effort and talent (ConfenceBoard, 2017). However, according to the IMF (International Monetary Fund), economic inequality in the country is significantly affiliated with differences that prevail between opportunities, including effort and talent, thus illustrating that wealth is not linked to hard work. Also, other data reveals that the agreement that wealth equals effort is misguided. For the indigenous people, for example, they usually earn around 70 cents for each dollar unlike the case of the non- indigenous persons while women earn around 67 percent of the income that men receive. The gaps that exist in this sense partly emanate from differences that exist in the distribution of highly paying jobs (ConfenceBoard, 2017). Thus, social inequalities also continue adding toward the growing inequality issue in Canada, thus leading it to emerge as a major area of concern in the country.

Policies and Measures Presently, various initiatives have been introduced by the Federal Government of Canada with the goal of addressing the different inequities that prevail within the country. At provincial levels, for instance, reviews concerning the social assistance and human rights are already being

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implemented. The reviewers in this sense are capable of making sure that the changes they recommend will have important benefits to racialized and minority groups in the country. Also, the emerging provincial and federal budgets are giving the governments opportunities for introducing measures that will facilitate in ending the unemployment and underemployment challenges that minority groups and the poor are facing in the country. In this sense, the different provinces in Canada need to ensure they establish countrywide strategies for reducing poverty via universally supported programs that target the needs of the excluded and vulnerable populations (Canada2020, 2011).

Moreover, policymakers in Canada need to ensure that all the territories and provinces that the federal government allocates money meet the employment equity objectives for any emerging job opportunities. The employment equity initiatives work efficiently. Also, the current program that demands compliance to federal contracts should ensure that it improves promotion and employment of women as well as racialized individuals, particularly among employers doing business with the government (Canada2020, 2011). Collectively, these measures would play a critical role in ending improving the wellbeing of individuals while ensuring that vulnerable communities attain full membership.

A different strategy that the government can implement is through transfers and government taxes. Government transfers and income taxes also contribute toward reducing the issue of inequality in Canada. The primary forms of income that need taxing comprise of market revenue and total revenue. Market income entails overall earnings that individuals generate from self-employment and other forms of employment, private retirement income, investment income.

Total revenue implies income gathered from all sources, such as government transfers when provincial and federal income taxes have not been levied (Flavella, 2014). Through collecting

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higher taxes on the rich and using it to offer social services to the poor, Canada would be able to address the inequality issue prevalent in the country.

Conclusion In conclusion, the inequality issue has affected diverse areas of the Canadian economy, including social, political, cultural, and economic. Canada is among the developed nations worldwide although the inequality issue within the country has raised numerous debates. The gap between the rich and the have-nots is growing increasingly significant each day. Owing to the problems that the inequality issue poses, the Canadian government, policymakers, and researchers have implemented certain initiatives to allow them to deal with the problem, such as targeting racialized and minority groups while at the same time allocating funds to vulnerable populations. Income taxes have also assisted in boosting the inequality issue within the country.

As such, the nation needs lay significant emphasis on the growing inequality issues as well as trends to devise effective ways of dealing with it before it leads to numerous problems within the economy.

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Canada2020. (2011). The Canada we want in 2020. Retrieved from http://canada2020.ca/canadawe-want/wp-content/themes/canada2020/assets/pdf/en/Canada2020_E_Income-5.pdf ConfenceBoard. (2017). Canadian income inequality. Retrieved from http://www.conferenceboard.ca/hcp/hot-topics/caninequality.aspx Flavella, D. (2014). Canada's inequality growing: Stats can. Retrieved from https://www.thestar.com/business/personal_finance/investing/2014/09/11/ rich_gaining_more_wealth_study_shows.html Rochon, L. (2014). Income inequality damaging Canadian economy. Retrieved from http://www.cbc.ca/news/canada/manitoba/income-inequality-damaging-canadianeconomy-1.2882793