Reasons For Wealth And Income Inequality

Analyse the economic and social costs and benefits of inequality in distribution of income in Australia.

A nation-wide social issue in contemporary Canadian society is relative poverty. Universal basic income (UBI), or ‘basic income’, is a model which aims to eliminate it. In this response, I will argue that UBI can reduce relative poverty in Canada. Subsequently, that the reduction of relative poverty will also improve both physical and mental health as well as diminish income discrimination in Canada. Since income inequality not only creates poverty but also is a social determinant of health. To accomplish this, I briefly outline the current state of Canadian poverty, the tenets of UBI, and the benefits that can stem from its establishment. Concludingly, discussing a measuring mechanism to ensure that the relative poverty is being resolved.

In a recent interview in the Ottawa Citizen, Justin Trudeau spoke on his decision to increase taxation on the wealthy upper class in order to redistribute money to the middle and lower class. This is in response to the issue of stalled median household income where Canada’s GDP has doubled yet household income has only increased by 15% (Kennedy 2015). This hints at income inequality in Canada, as it sheds light at the struggle of middle class families to provide for their families. Parents are having to choose between their retirements or providing education for their child (Kennedy 2015). To Justin Trudeau, this means that “something isn’t working anymore” (Kennedy 2015). Most likely, he senses that the way money is earned and distributed in Canada is highly unbalanced, leading to a income gap between the rich and the poor. Trudeau’s solution to middle class worries is to increases taxation on upper class

In today’s society it is unfortunate to say that a person’s income does reflect their value to society. Classism, it affects all of us. The government has classified you based on your yearly income. For example; if your income is between $18,000 - $23,000 you are classifed as a lower class Canadian. If your income is between $35,000 - $55,000 you are the average middle class Canadian. To be classified as an upper class Canadian your income would need to be anything above $55,000. The government has also classified those with combined income so if you are common - law, or married. Have you ever wondered why a doctor gets paid more than a construction worker? A doctor gets paid roughly $360,000 a year compared to the $63,000 a year income a

The issue of economic inequality has ruined the economy of the United States completely. This issue is making its way to Canada, which is causing more of its citizens to go into poverty. When this problem first started to arise, it was strongly ignored by the government because they believed it would not cause a problem. However, over the past twenty years, it has increased rapidly which caused the gap between rich and poor to became enormous. Moreover, the wealth of the rich strongly depends on the disadvantage of the poor. The only way the rich will stay rich is if the poor stay poor. The top one percent of Canadians receive 318,000 dollars on average whereas the bottom ninety percent receive only 28,000 dollars. If the poor start getting high

How can there be so many people in poverty? It is all around us even though Canada has made the G20 Richest Nations; they still have one of the highest poverty rates for in the industrialized world. Through reading many articles such as Ann Duffy and Nancy Mandell’s “Poverty in Canada”, others that I have found online, and my own personal experience I have learned the numerous reasons why so many people in a well industrialized nation such as Canada are struggling with poverty.

Poverty is a significant threat to women’s equality. In Canada, more women live in poverty than men, and women’s experience of poverty can be harsher, and more prolonged. Women are often left to bear more burden of poverty, leading to ‘Feminization of poverty’. Through government policy women inequality has resulted in more women and children being left in poverty with no means of escaping. This paper will identify some key aspects of poverty for Canadian women. First, by identifying what poverty entails for Canadian women, and who is more likely to feel the brunt of it. Secondly the discussion of why women become more susceptible to poverty through government policy and programs. Followed by the effects that poverty on women plays in

Inequality in Canada is not as prominent as many other places around the world, although it does remain in certain segments of Canada. There are many forms of inequality in Canada and internationally, although this papers main focus is going to be the inequality of wealth. According to Steven Kerstetter “Canadians may view their country as a land of opportunity, but it is also a land of deep and abiding inequality in the distribution of personal wealth” (Kerstetter 2002). The “gaps between the rich and poor remain evident in Canadian statistics” (Kerstetter 2002), Canadians have always kept financial security as an essential element of life and have tried to obtain and sustain it within their lives. Frank Cunningham’s article, “What’s

Canada is one of the wealthiest countries in the world, however, many citizens are below the blurred poverty line. (251). The poverty line in Canada is measured by the LICO-IAT (boooook) and the MBM (253). The resources for those below the poverty line are very poor; food banks and shelters are unable to uphold the amount of people that are in need of them. (252). Among the poor, many people have paid employment, however, it is not enough.

The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.

In Canada, the top earning age group is the “Mid-Lifers” aged between 45-59. They have high purchasing power and are more likely to spend on luxury products. Within this age group, 55 to 59 year olds are the top earners. This is said to drop to 50-54 by 2030. Social classes in Canada are also quite prone to change in the next few years. We can categories social classes into 5 categories, A, B, C, D and E (A being the top income class and E being the lowest. Currently there are 3 million people in category A, 3.3 million in category B, 6.1 million in category C, 9.3 million in category D and 8.8 million in category E. It is forecasted that even by 2030 category D will remain the largest social class, although classes E and A are forecasted

Education and wealth have a big impact on income inequality. Education and wealth go hand in hand when talking about income inequality. When a family is more wealthy, they can afford a better education. One article from ACE states that “currently in America, getting a postsecondary degree—in particular a bachelor’s degree—generally results in higher incomes, greater job choice, satisfaction, and security, as well as other outcomes considered good for our society, such as voting and community service.” This is important because if

The poverty issue has taken center stage in the social front owing to the impact it has on Canadian households as well as the tripartite level of government, that is Federal, Provincial and municipal government. This research paper will therefore assess the genesis of this social issue, the indicators established for proving its existence, the policies enacted and adapted towards its reduction in the country and also the role of the public in combating the challenge.

Every American dreams of finding a job that pays well enough so that they may comfortably take care of their loved ones and themselves for years to come. Most Americans hope to find some way to make a living that they enjoy, something that they view as productive. Unfortunately, many do not have this luxury. In our society, a good portion of the population is forced to hold the base of our country in place while hardly being redeemed for their time and effort, and thus the problem of income inequality. Numbers of these people live from paycheck to paycheck, barely getting by, not because they manage their money poorly, but because the value of their time at work is negligible.

In Kevin Milligan’s proposal Tax Policy for a New Era: Promoting Economic Growth and Fairness, a dual income tax system has been introduced that would boost economic growth and increase tax fairness. The new system contains a single, low rate on all capital income, coupled with a higher top tax bracket on wages. This essay, however, will focus on analyzing Miligan 's arguments in reforming the tax system. In this report, Milligan mentions two trends that raise concerns for current Canadian tax system. The first one is the increasing income concentration. More and more money was earned by relatively small portion of people. This has triggered some equity issues because the proportional tax that high earners pay does not higher that those