Canada’s Income Inequality Rises to its Highest Level Ever Under Trudeau

According to Canada’s statistics agency, income inequality in Canada under Justin Trudeau has reached an unprecedented high, with wealth becoming more and more concentrated among a small number of individuals.

Statistics Canada reported Thursday that the disparity in disposable income between the wealthiest two-fifths of Canadians and the lowest two-fifths widened to 47 percentage points in the second quarter of 2024.

“The report indicated that although elevated interest rates may result in greater borrowing expenses for families, they can simultaneously contribute to enhanced returns on savings and investment accounts.”

“Households with lower incomes often face challenges in capitalizing on these increased returns, primarily due to having fewer resources at their disposal for saving and investing.”

In a noteworthy development, individuals in the lowest 20 percent experienced a modest uptick in their disposable income share, attributed to wage growth. Conversely, the middle 60 percent of Canadians faced a decline in their income share.

According to the latest findings from Statistics Canada, during the second quarter, the wealth distribution revealed that the wealthiest 20 per cent of Canadians possessed over two-thirds of the nation’s total wealth, with an average of $3.4 million per household.

In contrast, the lowest 40 per cent of Canadians held a mere 2.8 per cent of the nation’s wealth under Trudeau’s leadership.

Finance Minister Chrystia Freeland side stepped the report Thursday – CBC Image

In response to concerns regarding increasing income inequality in Canada, Finance Minister Chrystia Freeland emphasized that the Trudeau government is committed to implementing policies aimed at supporting middle-class and lower-income Canadians, including initiatives like childcare and dental care programs.

“We are working diligently to counteract the growing trend of inequality in the global economy,” she stated during a press conference on Thursday. “We are taking a firm stance with targeted policies aimed at assisting middle-class Canadians and those striving to achieve that status.”

Conservative Leader Pierre Poilievre attributed the increasing wealth and income disparities to the policies implemented by Justin Trudeau.

“Today, StatsCanada revealed that the disparity between the wealthy and the impoverished has reached unprecedented heights, following the monetary policies of the NDP-Liberal government that have disproportionately benefited the ultra-rich while driving up living costs for the rest of the population,” he stated during a press conference.

This marks the largest disparity noted since 1999, the year Statistics Canada began its data collection efforts.

The analysis indicated that the widening gap was primarily influenced by the top 20 percent of income earners, who experienced the most significant rise in their share of disposable income, according to the findings.

The rise was primarily fueled by investment gains, a trend the statistics agency linked to elevated interest rates.

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