Wealth inequality is growing in Canada and in the US. But our political parties seem not to notice, are they on the take?
Last week the Canadian Centre for Policy Alternatives published a great analysis of the wealth concentration in Canada. In BORN TO WIN, David Macdonald reviews the census data to clearly show how our tax system, public investment strategies, and regulatory efforts serve the rich very well. He note in the introduction that over the 17 year period ending in 2016 the 87 wealthiest families in Canada saw their wealth grow by 37%, more than twice the rate at which was experienced for middle class families.
American academic Karen Petrou is raising the same issues south of the border, this interview in Bloomberg is great, laying the groundwork for her new book to be published early next year. She is a harsh critic of both the way banks have been regulated and monetary policies - to the disadvantage of the many.
Both of these arguments clearly outline a problem that is bigger than 'windfalls' that benefit some home owners. Housing affordability and precarious employment are a consequence of public policy decisions, that systemically favour the wealthy. As Macdonald states, "... in general Canada’s tax system is set up to encourage concentration of wealth at the very top."