During the past several decades, the gap between the wealthy and the poor has exacerbated.
Fortunately, it is also becoming more visible as in issue in politics. But do Canadians know and understand the extent of the problem in this country? Indeed, the distribution of wealth in Canada is different from what most of us think it is; and it’s a far cry from what it should be.
Why does the distribution of wealth and income matter? Evidence from a range of studies suggests that there is a correlation between income inequality and health and social problems. Hundreds of studies have established that a person’s socio-economic status is a powerful determinant of their health. But these health differences are not only a concern for the poor; at each level of income or education, greater socio-economic status results in greater health.
In spite of Canada’s prosperity, the gap between the ‘haves’ and ‘have-nots’ is widening. For example, in 2012, higher income respondents were 29 per cent more likely to describe their health as ‘excellent’ or ‘very good’ than lower income respondents. Only three years before, that difference was only 17 per cent. Evidence continues to mount that rising income inequality is contributing to the deterioration of the health of all people in Canada, regardless of their income level.
To find out what Canadians know about the distribution of wealth in this country, the Broadbent Institute sponsored a survey of 3,000 people. The report, entitled “The Wealth Gap: Perceptions and Misconceptions” shows just how much Canadians underestimate the wealth gap in this country ( http://www.broadbentinstitute.ca/wealthgap ).
The study found that we vastly underestimate how skewed the distribution of wealth actually is. It is equally firm in its conclusion that we also think things should be much more equitable. A large majority, four out of five, Canadians believe that the gap between the rich and everyone else has widened over the last decade. Asked to quantify how the wealth is shared, we think that the top 20 per cent of Canadians hold more than half of the wealth in the country (55.5 per cent); the poorest fifth, in contrast, are believed to hold less than six percent. In truth, the wealthiest hold more than two-thirds (67.4 per cent) of the wealth, while the poorest fifth of Canadians control no wealth at all (actually, they hold -0.1 per cent) and are in debt.
One positive finding of the survey was that regardless of demographics or past political preferences, there is a clear desire for a more equitable distribution of wealth. That means there should be political will to do something about the gap between rich and everyone else. Indeed, 73 per cent of Canadians believe the government can do something to reduce it. But what to do?
Canadians are not shy on targeted tax increases. Some 80 per cent are supportive of increasing the federal income tax rate on the highest income bracket, while three out of four support increasing corporate tax rates back to pre-2008 levels to address inequality. On the social policy side, a publicly funded national child care program to address inequality has the support of seven out of 10 Canadians, as does increasing funding for social assistance to low-income Canadians.
The World Health Organization (WHO) clarifies the situation: “Poverty is the single largest determinant of health.” And regardless of what Canadians think the wealth divide is, they feel wealth should be distributed in a more equitable manner.
Editor’s note: Dr. Paul Martiquet is the medical health officer for rural Vancouver Coastal Health including Powell River, the Sunshine Coast, Sea-to-Sky, Bella Bella and Bella Coola.
