Social Inequality in Canada

Social Inequality in Canada
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Social Inequality in Canada
For a long time, equality has existed in the world's economy, with economic growth benefiting mostly the rich. A recent report released by the World Economic Forum indicated that severe economic disparity is one of the most considerable economic risks. (Corak, 2013). Since the major financial crisis of 2008, the Organization for Economic Co-operation and Development (OECD) has stated that a country can only reduce inequality by stimulating economic growth (Little, 2016). According to the International Labour Organization (ILO) report on a current rise of inequality in developed countries, the income of high-income households expanded faster than the medium-and-low income households between 1990 and 2008 despite this period being of rapid economic growth and job creation (Little, 2016).
Canada is one of the developed countries with the strongest economic growth, but the unequal distribution of wealth and income. Since 1980, inequality has increased by around 19% for market income, according to the Gini Coefficient (Little, 2016). The Gini coefficient is a metric used to measure economic inequality. Due to the rise in inequality, the market income shared captured by 21% of the richest in Canada grew sharply to approximately 13.3% in 2010, from about 8% of all income in 1982 (Procyk, 2020). This research aims to investigate how social inequality operates within Canada’s economy using two examples: income inequality and the rising cost of living in Canada. The study further uses sociological analysis to discuss what can be done to reduce social inequality in the economy.
Income Inequality in Canada
Income inequality has increased partly due to globalization and changing technology, which has resulted in the structuring of the Canadian economy (Soylu, 2018). To some extent, it has grown due to pervasive economic trends, including recessions. In the past, government policies and Canadian institutions limited the rise of income inequality. Today, well-paying jobs have declined, unions have become weak, and the minimum wages have failed to keep pace with inflation (Procyk, 2020). The prevalent jobs are often low-paying service jobs and temporary jobs or short-term contracts that do not provide a secure position in the labor market.
Equally, measures such as redistributive transfers and progressive taxes that once compensated for skyrocketing of income inequality have been restructured to pay less for this growth. Programs like social assistance and employment insurance benefits have been weakened in a way that they provide little protection to the middle-and low-income employees (Corak, 2013). The increased wealth accumulation and the rising living cost in the form of real estate and other assets for high-income workers have further widened the gap between the rich and the poor in Canada.
Over the past decade, international policymakers such as the World Bank, United Nations, and OECD have established a near-unanimous consensus that rising inequality is a severe economic problem (Little, 2016). Undeniably, this is an issue that req...