coins-dolmansaxlil-byncsa2.0thumb-1.jpg
coins-dolmansaxlil-byncsa2.0thumb-1.jpg

OECD’s dire warning for Canada: income inequality will get a lot worse

The Organisation for Economic Co-operation and Development has some bad news for Canada: income inequality has been on the rise since the mid-1980s and is projected to get a lot worse over the next 50 years. The OECD’s outlook is part of its new predictions for the world economy until 2060. “These are that growth will slow […]

July 13, 2014

The Organisation for Economic Co-operation and Development has some bad news for Canada: income inequality has been on the rise since the mid-1980s and is projected to get a lot worse over the next 50 years.

The OECD’s outlook is part of its new predictions for the world economy until 2060.

“These are that growth will slow to around two-thirds its current rate; that inequality will increase massively; and that there is a big risk that climate change will make things worse,” writes Paul Mason, an economics editor in England, summing up the overall predictions of the Paris-based think tank representing the world’s most advanced countries.

Canada isn’t sitting so pretty in this scenario.

1. The OECD report says income inequality increased in Canada from the mid-1980s to the late 2000s under successive Liberal and Conservative governments:

Figure 4

 

2. OECD projects gross earnings inequality in Canada will worsen between 2010 and 2060, placing Canada behind only the United States and Hungary among 21 charted OECD countries:

Chart B

 

3. OECD says a decrease in earnings inequality can occur in Canada through 2060 if employment protection, union coverage, tax wedges and product market regulation coverage are enhanced:

Figure 17

Photo: dolmansaxlil. Used under a Creative Commons BY-NC-SA 2.0 licence.

SORRY, WE'RE NOT SHUTTING UP

Dear readers: Rebel Media is sending their lawyer after us. But we're not shutting up. Contribute to our journalism defence fund today so we can defend ourselves in court.

thumb-3.jpg
thumb-3.jpg

Canada’s economic performance is nothing to celebrate

For all of the self-congratulatory rhetoric of the Harper government, the fact remains that Canada’s economic recovery has been built on very fragile foundations. Growth has been fueled by the growth of household and foreign debt rather than by business investment, and we have become dangerously reliant on the resource sector. Over the entire period […]

July 12, 2014

For all of the self-congratulatory rhetoric of the Harper government, the fact remains that Canada’s economic recovery has been built on very fragile foundations. Growth has been fueled by the growth of household and foreign debt rather than by business investment, and we have become dangerously reliant on the resource sector.

Over the entire period of recession and recovery, between 2008 and 2013, Canada’s real GDP grew by 6.2%. Growth was driven by an 11.9% increase in household consumption over…