Effect of Income inequality in lives of Canadians

Topics: Poverty, Economic inequality, Wealth Pages: 2 (504 words) Published: October 10, 2013

Canada is considered one of the best places to live in the world, and one of the richest countries. But nowadays, Canada has been experiencing increasing amount of economic issues like the growing unemployment rates on certain profession and income inequality in the country. Income inequality is the unequal distribution of resources and income on each household in different parts of a country. The main reason as to why income is distributed so unequally is because of the gap between social classes. Canada has been experiencing income inequality over the past years and some of the causes of the increasing income inequality are changes in taxation, companies’ salary or even changes in technology. There are numerous causes of this issue but however, the real concern is how it affects a country, and in this case, how it affects Canada. The growing inequalities in income harms the economic growth of a country, can increase the rate of poverty and can raise a question about fairness and social justice. Poverty is a common issue and is very dominant on the majority of the countries in the world. It is not only found in the developing countries, but also in well developed countries like United States, Canada, and some countries in Europe. "The poorest 40 percent of the world’s population accounts for 5 percent of global income. The richest 20 percent accounts for three-quarters of world income.” (http://www.globalissues.org ). This just shows the current state of income inequality in the world. It is one of the causes on why poverty keeps on increasing. According to cbcnews, Canada currently has 15.1% child poverty rate. If the income gap between the middle class and the poor people are too high, chances are, the rich people will continue to grow richer and the poor people will stay the same, or even poorer. Based from the statistics from the past few years, poverty rates are higher in more unequal societies. (http://www.academia.edu). That doesn’t mean than on every...

Bibliography: http://www.conferenceboard.ca/hcp/details/society/income-inequality.aspx
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