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377493 tn?1356502149

Rising Income Gap

There is tonnes of info on line about this, but thought you might find it interesting.  The US currently has the largest income gap between the "haves" and the "have nots".  Canada however, is increasing at a more rapid pace, although we currently sit further down the line.  

What I thought was really interesting was that if you look at third world countries, the gaps are enormous.  Givent what is happening with the current economic state, it makes me wonder if we are not all sliding backwards in the direction of developing countries.  Found this all a little bit scary.  What do you all think?


OTTAWA - Canada is rapidly catching up to the United States as a country divided between haves and have-nots, according to a study issued Tuesday by the Conference Board.



The Conference Board says income inequality has been rising more in Canada than in the United States since the mid-1990s, and faster than in many peer countries.



In fact, the think-tank says Canada had the fourth-largest increase in income disparity among a sample group of 17 advanced economies in the period between the mid-1990s and the late 2000s.



"Even though the U.S. currently has the largest rich-poor income gap among these countries, the gap in Canada has been rising at a faster rate," said Anne Golden, the board's chief executive.



"High inequality raises a moral question about fairness and can contribute to social tensions," she added.



Overall, income inequality rose in 10 of the countries sampled, rising fastest in Sweden, Finland and Denmark.



Canada was next. Its Gini index, a complicated formula which measures income deviations from a perfectly equal distribution, rose 9.2 per cent to 0.320.



By contrast, the U.S. had the highest income inequality of the group with a Gini reading of 0.378.



The Conference Board notes that Canada's index number put it in group of countries considered to have a medium range of income inequality.



A reading above 0.4 would designate high levels of income inequality, and under 0.3 indicates a low income gap.



Overall, the Conference Board says income inequality has increased in countries representing 71 per cent of the world's population. Twenty-two per cent live in countries where inequality is declining.




© The Canadian Press, 2011


Read it on Global News: National | Income gap rising faster in Canada than many of its peers, including US: study
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377493 tn?1356502149
You never have to worry about what you say to me.  I don't ever consider it personal (unless you start calling me names..lol), and I don't in any way think you are dissing my country.  Its always interesting to talk about the differences.  Our two countries are so much alike in so many ways, and in other way so very different. I love talking about it and debating it.  

What happened Brice?  Here they can make you feel like a total deadbeat when you apply, unless it's for maternity.  
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Avatar universal
Oh brother, do I have a story about trying to collect unemployment benefits.... 1 time in my life.....
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Avatar universal
Oh, I wasnt dissing your country. You live there and are happy with it. Its coming here too though, which some are for and others arent. lol
I am also glad you were able to have your family. Dont take my passionate disagreements personally...I dont wish that any of those helped were not helped...I just have my own thoughts on things, and most of my thoughts stand all by themself...cause the majority does not agree with me. lol
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377493 tn?1356502149
Oh, I have no doubt not everyone is happy with it.  Is there any policy that will make everyone happy?  But for the most part this just works for us here.  And it's like anything...whats good for one country may not be in the overall best interest of another.  Plus, amongst any population, not everyone will be happy.  I guess Eutopia does not exist.

That being said, we have a conservative gov't in place right now.  They tend to be business friendly and if this was an across the board problem, it would be being addressed.  Trust me on that..lol.  

Personally, I am grateful.  We probably could not have afforded to have children had it not been for our programs.  And I don't consider it entitlements unless you consider unemployment insurance an entitlement.  It's insurance...I paid into it (again, far more then I have ever taken out).  In fact, I have never collected a dime of UI until my maternity leave.  I am so grateful to have had that time with my son.  Some do go back early and that is their choice.  I took the full year.  Without that income, it would have been impossible.  

As for employers having to have cause to fire...same applies while on leave.  If there is a valid reason to get rid of someone they can.  If not, well, they have to bring them back. It can be a different role, but must be the equivelant.  I do think women with children would be "punished" for having them otherwise.  Just my belief.
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Avatar universal
I am 100% for families. If I could, I would encourage all moms to be home with the kids until they are out of HS. Thats my beleif of what is best for the children...however, many can not make it on one income and most dont want to live without the extras...and some would just go crazy being at home with kids all day. Thats the wonderful thing about freedom, we can all choose whats best for our indivual family.
I was reading a business blog about this...I did some googling and there are businesses complaining...quietly because of pressure. I stand by it not being fair to employers.
I also agree moms belong with their children..only not only for a year, but until they are grown. (but thats me lol)
http://www.canadianbusiness.com/article/43497--the-dark-side-of-maternity-leave
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377493 tn?1356502149
Well, I can tell you, it truly isn't a big deal here.  What typically happens is that someone in your dept will job share your duties.  In my case, someone that reported to me took over for me.  Or, depending on the role, someone from a temp agency will step in.  It actually creates employment opportunities, and an opportunity for someone to get on the job training. Many many times the employer will keep that person if they are good.  Never met a company that had an issue with it.

Yes, having a family is a choice.  But this is what is good for children.  At least that is our belief.  Our culture is different in many ways from the US, and family is a really huge big deal here. Not saying it's not there, but you will find most organizations and companies here will do extra things to support parents.  It's just the way it is and is just what's considered normal.  I mean, look at it in the reverse...to me it seems very odd to have to go back to work with a 3 or 4 week old infant at home.  

I can tell you that if companies had an issue with this, it would be fought.  Yet it's not been challenged.  And like anything else is life, there are pro's and con's.  You cannot collect it either if you have child after child.  You have to be back at work a certain amount of time before being eligible again.  This prevents system abuse.  Here, you also cannot collect unemployment if you just quit your job or if you are fired for cause.  So that cuts down on abuses as well.  Maybe you see it as wrong, but for us, it works.  I can see where your coming from though.  There are many things in the US I think are wrong, but I understand it's because I don't live there or live it, so I cannot really fully comprehend it.   That's why I ask so many questions...many other countries are run differently and I like to learn about it without making judgement. Make sense?

You can't have kid after kid and collect on this.  You can only collect unemployment once every x amount of years.  You have to pay into it to collect it.  Just like any other person collecting it.


Also, I should add..you cannot just get rid of an employee here.  You have to have valid reason for it.  For example...you have to show a record.  First a verbal warning, then a written one, then dismissal.  Or evidence that something wrong has happened (such as stealing).  You can only fire here for valid reason, and it cannot be personal (ie, just don't like them).  
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1649704 tn?1402778437
   I agree that the 'middle class' has been greatly diminished. Is there is an ongoing effort on the part of the wealthy, powerful, and elite to eradicate our middle class, leaving a 'ruling class' and a 'lower class' that is dependent on entitlement programs to survive?...........'Religion' is such a generic term. I am not religious. I am a Christian. I am totally convinced to the Holy Bible as the infallible word of God. As humans, we cannot really grasp who, what, and how God is. He is the First and the Last, the Beginning and the End, the Alpha and Omega. We can only think in finite terms but, God is infinite. Those who come to God must come to Him in spirit and in truth (beyond our human capabilities and understanding). And, Jesus said that He was the Way, the Truth, and the Life. "No man commeth to the Father but through Me". Seek and we will find Him and the Truth. The promised Comforter (Holy Spirit) will help us. Each of our relationships with our Creator is close and personal because that's the way God wants it. We then should live a life as best we can in accordance to His will and word. There is no need to debate 'religious issues', as many do, because soon enough we are all going to discover the truth in God anyway. More Faith is what I need. For Faith is the substance of things hoped for and the evidence of things not seen.
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Avatar universal
Ps....sorry it sounded so harsh at the end... :(
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Avatar universal
I cant see this as fair to an employer, at all. Having children is a choice. I guess I see it as everyone wants special privileges and everyone else has to pay for them.
For example...the company..being left to re-train a temp...plus..what if they didnt really care for the eomployee and would have been glad to see them gone...now are stuck...
I think its wrong all the way around.... having a family is a choice...and working for your boss is a priviledge. What about those who have kid after kid? No way...its wrong.
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377493 tn?1356502149
When we go on maternity leave, we collect unemployment insurance.  Everyone in Canada pays into unemployment insurance, but one of the things you can access it for is what's called parental leave.  Either parent can take this, including for adoption, etc.  Maximum of course is 60% of your income to a maximum of $1600/month.  The reason for this is because our belief is that the first year of a childs life it is imperative that mom or dad be with them.  This enables you to do so and still survive.

The same principal applies to employers having to give your job back.  Nowadays most women have to work and we don't believe should be penalized for having children.  It isn't a problem at all, but we also have stricter laws then you do in terms of firing, so again, not a big deal.  

Visits from the nurse are not surprise.  It's a booked and planned upon time.  And if it was a surprise, we certainly do not have to let someone into our home without a legal warrant.  Most new moms find it helpful.  They will assist you with everything from breastfeeding to bathing.  They will help connect you with community resources and will check you for things like post partum depression.  I personally found having an infant a bit overwhelming at times, and the support was amazing. We believe lives are saved through this as hopefully issues like ppd are caught in time.  But it's not forced nor a surprise.  
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Avatar universal
Adgal..
Are you saying you pay into the maternity leave yourself? Do the men and women that wont be having children have to also pay into that?

Personally I dont think its fair to the employer to be forced to allow someone to take a year off and then be requried to keep them on board.

Home viist...not in favor of, as I dont want interference (which is how I see it) but then I also know many moms are overwhelmed. We had that where i live..when I had my second baby they had this program..but I had no idea about it..they dont tell you, they do a surpise visit....In all honesty, it went fine, but I am still not for it.
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377493 tn?1356502149
Thats nice to hear.  I can say as a mom they programs are really great.  Our 1 year paid maternity leave is huge.  And we actually pay our income ourselves as it's actually unemployment insurance we collect.  I have no problem with it at all as I paid into that system for a long time, so didn't even come close to collecting what I have contributed.  Our employer has to give us our jobs back, or at least one at equivalent pay/status.  We get a home visit from a health care nurse to ensure we aren't getting overwhelmed with a new baby, etc. And that is one of the reasons I am such an advocate of our health care system...the preventative care.  Screening no matter your income level for breast cancer, cervical, etc.  

And yep, our gov't *****.  lol.  I don't dispute that one iota.  Sadly, in our last election, the alternatives were worse.
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Avatar universal
This is off topic a bit but thought it interesting enuff to share. I heard on the news this morning. I think it was cnn but not sure. The top three places to live that are favorable to women. Iceland, they send out teams to make sure businessess are paying women the same as men for the same job and they got rid of all strip joints. Not legal as they are detrimental to a woman. Second was Austrailia, good health care, womens programs and the such and third was Canada because of its good healthcare system, womens programs. They did say their government sucked but economically good. US came 8th on the list. The great USA came in 8th.
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Avatar universal
No...not religion...ugh..I wont try to explain it... lol
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Avatar universal
I won't get into religion bringing us back to being a third world country.  Rome, widely catholic, fell in just a few days....  I wish religion were the answer here, but I just can't find it.  It is the blind faith thing that I have a hard time with, I guess.

A real right wing buddy of mine keeps professing that the top 1% of wage earners in this country pay the majority of taxes.  I've seen those figures, and I even believe them to be true.  When you take a look at what is considered upper class ($250k and up), they should be paying more taxes!  Simply, if I paid $7,500 in taxes and a guy making $250k paid $7,500.... something is way, way, way wrong with the system.  It isn't that blatant, but there are may loopholes to hide in if you make $250k compared to $50k.

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377493 tn?1356502149
It is scary.  Very scary.  Right now you folks have the highest gap, but we are quickly catching up.  And if you look at the other countries on the list, I think it's interesting that they are all considered our economic peers.

I don't want to live in a 3rd world country.  African nations and other developing countries are closing the gap and developing middle class', we in the "free" world are widening the gap and losing the middle class.  Quite a reversal.
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Avatar universal
Ok, I see what you are saying. Thank you for explaining that. :)
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Avatar universal
I think you explained it well adgal. I couldnt have done as good for sure. And the middle class is disappearing at an alarming rate, you are so right!  It is scary to see that Canada is going that way as well.
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377493 tn?1356502149
I don't agree with being entitled to what the wealthy have.  In my mind, anyone that works that hard, takes those risks, or whatever the case may be is entitled to all that they have.

The issue with the widening of the income gap is the virtual elimination of the middle class.  There are a number of reasons for that, but a big one is job availability.  For example, in lay off situations it's middle managment and the front line workers that are typically the first to go.  Not the CEO's or whatever the case.  The middle class pays the majority of taxes in both our countries.  They take the least from the system and pay the most into it.  That isn't fair in my mind.  They are also one of the biggest contributors to the economy - that is because they are the largest group.  Or at least were.

When any country begins to see the rapid elimination of the middle class, it is a huge sign that things are truly collapsing, and it is frightening.  You wind up with increased crime rates as people become desperate to feed families.  Housing markets collapse.  Infrastructure cannot survive.

This isn't to be negative, and this sure doesn't happen overnight.  But whenever you see a widening gap like this, it's dangerous.  It's not about entitlement or even coveting what the wealthy have.  It's about a country continuing to struggle, and it will be moreso if the middle class does in fact disappear.
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Avatar universal
I believe our country is definately becoming a 3rd world country. Been saying that for a while when I am talking to my friends this way. My reasons however are due to spiritual. Things have to get worse so there can be a one world government. I am hoping that we get things right and can turn things back to put this off longer.
One thing I am confused about, is I hear some of you talk about the haves and have nots and I get the impression some feel they are entitled to some of the money the weathier has. I may be misunderstanding, but here is my view on this.
The only reason the middle class is suffering, is because of the government (not independant wealthy people). The government takes a good chunk of our income and they play with it however they want. One of the largest mistakes they make with his is welfare and state paid health. For years and years and years and years they have enabled this, but not ignorantly. They want a people us to depend on them completely for everything, and they are no dummies. They are also continuing to bring in more and more people to live off the government, when jobs are low, knowing full well its hurting us further. They knew by creating this mess,  it would come down to the middle class being poor themselves and needing their help. Whats left will be their (rescue) which ultimately is our destruction. No more US as we know it.
One thing I find interesting is that I keep hearing "all americans will have to do their share to fix this" Um....no, I did not create this mess. I dont spend a dime I dont have. I dont collect any goverment help even though I certainly could due to my health issues. I dont waste money or live above my means. I cant afford to fix some things in my home that need desperate fixing, and I am talking about NEEDS, not painting or putting in a new floor. I dont go borrow the money. I did not create this mess, but as usual, I will be expected to somehow help fix it, which will further contribute to my poverty, but then God is my provider, so I guess I will see him provide when things are worse than they are now.
This sharing the wealth does not exsist. Have you ever been part of a hippy colony? Well, let me just tell you...everyone wants everyone to share and many people do this and do it well, and there are WONDERFUL hippies out there, but there are always those that want what you have and you are expected to give it when someone asks. You may think...well, a person should do that if someone has a need. Well, let me put it to you this way. You live by an open door policy. Anyone needs a place to crash, just drops in. You feed them, they use your hospitality and may or may not leave for a while. They also may do NOTHING to help. No garden work, no chopping wood, nothing...but they may hang around and bum clothes and food and whatever they want for as long as they want. You wash their laundry, cook their meals, etc.. Then too are those who dont respect what you try to take care of . You may be a clean person and you may not have much, but try to care for what you do have. So,,, you have a carpet on the floor and since they dont care about what you work to care for, they may think its funny when they spill milk on your carpet. They may accuse you of being materialistic because  you dont want them to gouge their initials into your dining room table. There is no happy lets all split everything. There will always be those who are honest and hard working and those who are leeches and those who abuse their power by stealing from the middle class.
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