The Intransigent Faction
4th April 2014, 19:52
By: Jane Gerster (http://www.thestar.com/authors.gerster_jane.html) Staff Reporter, Published on Thu Apr 03 2014
Canadas richest 86 people have as much wealth as the poorest 11.4 million
In 1999, the 86 wealthiest Canadians had a net worth of nearly $120 billion equivalent to the bottom 10.1 million Canadians but that increased to nearly $180 million in 2012.
Canadas richest 86 people are as wealthy as its poorest 11.4 million, according to a new report.
Not only do the 86 who make up just 0.0002 per cent of the entire population control a third of the countrys wealth, says the report from the Canadian Centre for Policy Alternatives (https://www.policyalternatives.ca/), but they have enough money to purchase all of New Brunswick with billions to spare.
All the cars, all the houses, all the land, all the stocks, all the bonds . . . everything, said David Macdonald, the centres senior economist and author of the report. Literally, everything.
Much has been made of income inequality, with the richest 20 per cent taking home almost 50 per cent of income, Macdonald said, but wealth inequality is worse. Almost two-thirds of Canadian wealth is controlled by richest top 20 per cent.
The gap has only increased (http://www.thestar.com/opinion/commentary/2013/09/26/growth_of_inequality_in_canada_cannot_be_denied.ht ml) over the last 13 years, Macdonald found by analyzing data from Statistics Canada and Canadian Business magazine.
In 1999, the wealthiest 86 had a net worth of just under $120 billion, (equivalent to the bottom 10.1 million Canadians), but that has increased to just under $180 billion in 2012.
Also since 1999, 66 cents of every new dollar of real wealth has gone to the wealthiest 20 per cent, 23 cents has gone to the upper-middle class, with only a dime left for the bottom 60 per cent.
In many ways, the growing divide is more concerning than income inequality, said Erin Weir, economist for the United Steelworkers.
Wealth matters because it also confers political power and social status, Weir said, adding wealth makes increasing inequality a self-reinforcing trend: invested wealth is a source of income, those who already have the most wealth have the greatest capacity to accumulate more wealth.
Indeed, the report found that even the wealthiest CEOs couldnt earn their way into the wealthy 86.
Of Canadas top 100 highest paid CEOs (http://www.thestar.com/business/2014/01/01/top_100_ceos_earned_79_million_on_average_report_s ays.html), only 10 were in the 86 and all 10 were related to the founder of the company.
You just cannot save up enough money to get into the wealthy 86, Macdonald said. They are in a different league.
The financial insecurity of the lower and middle classes could also slow the economy, he said.
The poorest Canadians, they just dont have any assets to speak of, or they have more debt than they have assets . . . which means theyre not going to be big spenders in the economy, theyre going to be much more conservative, Macdonald said.
And while wealthy people are still buying, Weir said, I dont think that makes up for the fact that middle-class households are shouldering record-high debt levels (http://www.thestar.com/business/economy/2013/12/19/canadian_consumer_debt_to_reach_record_in_2014.htm l) and therefore have their spending limited.
Narrowing the gap, both suggested, would require increasing income taxes for higher earners and increasing the inclusion rate on capital gains, which are currently taxed at half the rate of normal income.
Its the only public policy solution, Macdonald said. Its through the sale of assets these wealthy 86 manage to build up the level of wealth and its only through changing the capital gains that you would actually have an impact.
We know, of course, the solution is not increasing income and/or capital gains taxes...It's about time the rich got 86d! :grin: Of course revolution would have to do more than expropriate the wealth of the *richest* capitalists.
Canadas richest 86 people have as much wealth as the poorest 11.4 million
In 1999, the 86 wealthiest Canadians had a net worth of nearly $120 billion equivalent to the bottom 10.1 million Canadians but that increased to nearly $180 million in 2012.
Canadas richest 86 people are as wealthy as its poorest 11.4 million, according to a new report.
Not only do the 86 who make up just 0.0002 per cent of the entire population control a third of the countrys wealth, says the report from the Canadian Centre for Policy Alternatives (https://www.policyalternatives.ca/), but they have enough money to purchase all of New Brunswick with billions to spare.
All the cars, all the houses, all the land, all the stocks, all the bonds . . . everything, said David Macdonald, the centres senior economist and author of the report. Literally, everything.
Much has been made of income inequality, with the richest 20 per cent taking home almost 50 per cent of income, Macdonald said, but wealth inequality is worse. Almost two-thirds of Canadian wealth is controlled by richest top 20 per cent.
The gap has only increased (http://www.thestar.com/opinion/commentary/2013/09/26/growth_of_inequality_in_canada_cannot_be_denied.ht ml) over the last 13 years, Macdonald found by analyzing data from Statistics Canada and Canadian Business magazine.
In 1999, the wealthiest 86 had a net worth of just under $120 billion, (equivalent to the bottom 10.1 million Canadians), but that has increased to just under $180 billion in 2012.
Also since 1999, 66 cents of every new dollar of real wealth has gone to the wealthiest 20 per cent, 23 cents has gone to the upper-middle class, with only a dime left for the bottom 60 per cent.
In many ways, the growing divide is more concerning than income inequality, said Erin Weir, economist for the United Steelworkers.
Wealth matters because it also confers political power and social status, Weir said, adding wealth makes increasing inequality a self-reinforcing trend: invested wealth is a source of income, those who already have the most wealth have the greatest capacity to accumulate more wealth.
Indeed, the report found that even the wealthiest CEOs couldnt earn their way into the wealthy 86.
Of Canadas top 100 highest paid CEOs (http://www.thestar.com/business/2014/01/01/top_100_ceos_earned_79_million_on_average_report_s ays.html), only 10 were in the 86 and all 10 were related to the founder of the company.
You just cannot save up enough money to get into the wealthy 86, Macdonald said. They are in a different league.
The financial insecurity of the lower and middle classes could also slow the economy, he said.
The poorest Canadians, they just dont have any assets to speak of, or they have more debt than they have assets . . . which means theyre not going to be big spenders in the economy, theyre going to be much more conservative, Macdonald said.
And while wealthy people are still buying, Weir said, I dont think that makes up for the fact that middle-class households are shouldering record-high debt levels (http://www.thestar.com/business/economy/2013/12/19/canadian_consumer_debt_to_reach_record_in_2014.htm l) and therefore have their spending limited.
Narrowing the gap, both suggested, would require increasing income taxes for higher earners and increasing the inclusion rate on capital gains, which are currently taxed at half the rate of normal income.
Its the only public policy solution, Macdonald said. Its through the sale of assets these wealthy 86 manage to build up the level of wealth and its only through changing the capital gains that you would actually have an impact.
We know, of course, the solution is not increasing income and/or capital gains taxes...It's about time the rich got 86d! :grin: Of course revolution would have to do more than expropriate the wealth of the *richest* capitalists.