Income Inequality in Canada

Factors Affecting Income Growth in Canada

Based on the list of income distribution on equality made by OECD, Canada, as one of the developed countries in the list, is placed on the 21st place. Though it is in a higher rank that what America has, Canada’s place is decreasing slowly because of many issues. There is a big inequality when it comes to the income growth of Canadians through the years. All of the Canadian CEO’s that are best paid have a 32% increase with their income in the present year, while most Canadians have a fluctuating percentage throughout the years that would only increase for about 17%.

Increasing Income

Many Canadians make it difficult to find ways on how they can increase their income growth rate due to the fact that almost 1.4 million are recorded to be unemployed in January of 2011. There is a great difference with the total income received by every family annually, and most of the recorded annual incomes were deflating.

Historical Trends

20% of the family belonging in the bottom class decreased their income from 4.3% to 4.1%, 20% of families belonging in the mid-bottom class whose incomes also decreased from 10.9% to 9.6%. 40% of families included in the middle class, were not spared since their incomes that were raising 25.2% before decreased to 23.9% while those families on the top class that makes up the 20% left were increasing their incomes from 41.8% to 46.9%.

Even the marginal tax rate also decreased from 80% in 1948 to 43% today. It is also found out that the median earning would inch higher from $44,100 to $45,600 during the inflation-adjusted terms, which is very low unlike what top CEOs are able to earn. Since 1976, a total of 13% income growth in the average pay of CEOs was recorded, which made their median earning to increase $6 million, approximately. This only means that there is a huge issue in inequality when it comes to the income of every Canadian.


Due to continuous expenditures on different unproductive projects under the federal government, a total of 62% out of 100% of people can describe that the democracy of Canada is in a certain state of crises. Moreover, there are also over millions of Canadian dollars spent for monitoring the media and even on advertising corporate giants. There are also expenditures recorded on running various jails around Canada.


All of these problems with the economy and inequality when it comes to income growth have been connected to politics as the main factor that causes such problems. It has been noted that the Canadian government had a stable economy from 1867 till 1988 but when the year 2008 came, the usual growth of an average of 79% decreased continuously to over 58%. This means that politics made a huge difference with the economy of the country which alarmed citizens and even made them think that the country is facing a huge crisis affecting their lives. This crisis may worsen through the coming years if not provided with solutions or not given enough attention by the government.