A recent study has shown the present gap between the richest and poorest families in Ontario is wider than ever. The study looked at income distribution for families with children under 18. The gap started widening in the mid 1990’s and has been growing ever since. In 1976 the richest families were 27 times wealthier than the poorest, but by 2004 it jumped to 75 times.
Other observations on Ontario's Growing Gap from Armine Yalnizyan:
Income disparities have grown worse in the last 10 years even though the economy is stronger. 40% of Ontario families have had almost no income gains and some have even taken losses. This is a strange situation because most families in Ontario are better educated than previous generations and are working longer hours. The economic growth in Ontario did not improve the poverty rate at all. Income for the bottom 40% has not shown growth since the year 2000.
- Many people are having a hard time covering basics such as housing, child care, electricity, transportation and food. The population is also growing which is one of the factors that are increasing the cost of housing.
- Meanwhile, the richest income gains have risen rapidly. This small segment of the population has the most influence on such things as clothing trends, costs of housing, health care and transportation. Ontario has the highest number of millionaires and billionaires in Canada. Bankers have predicted housing costs to double in the next twenty years, but increases in wages are not expected to double. The richest 10% are the only group who actually has worked fewer hours in the last few years and yet made more.
Governments in other provinces such as Quebec and Newfoundland have shown more initiative in addressing poverty issues by implementing anti-poverty strategies that include budgets and deadlines.
Ontario has the largest economy in the country and yet it also has the largest rates of income disparity. It is strange that such a rich province claims it can’t afford to help the poor. Increasing the minimum wage to $10.00 an hour would help as well as increasing the child tax credit, but whether that will be done remains to be seen.
Reference: Ontario’s Growing Gap (Armine Yalnizyan, May 2007)
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