Occupy Canada Protest: Income Disparity Not As Deep As In The U.S.

Occupy Canada

First Posted: 10/19/11 05:30 AM ET Updated: 10/19/11 04:32 PM ET

TORONTO - The income disparity that has prompted thousands of people to "Occupy Wall Street" in the U.S. is less of an issue in Canada, where the movement seems to have less momentum than its more robust American cousin, experts say.

Canadians benefit from a progressive tax structure and a number of social programs not available to Americans, universal health care being the most glaring example, said Ian Lee, a business professor at Carleton University in Ottawa.

Canada's tax benefits, welfare programs and health care systems help to level the playing field for those who fall on the lower end of the income divide.

"We're certainly not perfect — no country is — but we are not doing badly," Lee said

Figures from the Organization for Economic Co-operation and Development indicate that the ratio of income distribution in Canada is in the average range, well below that for the U.S., even before adjustment for the country's tax system and social programs.

When social programs are factored in, the gap between the two countries gets even wider, Lee said.

In addition, Canada's top earners in general make considerably less than their American counterparts, he added. While Canadian bank presidents earn tens of millions of dollars a year, CEO salaries for American banks measure in the hundreds of millions.

There are signs, however, that the gap in Canada is widening.

The top one per cent of Canada's earners took home 11 per cent of the country's total income in 2009, a sharp increase from 1982, when the top one per cent earned just 7.4 per cent of the national payroll.

The latest percentage is down slightly from the record high of 13.8 per cent recorded in 2007, but that doesn't signal a reversal of the trend, said McMaster University economist Mike Veall, one of Canada's leading researchers on the subject of income inequality.

Rather, it's likely the short-lived consequence of the economic unrest roiling markets around the world.

"This is likely temporary," Veall said. "If you look at the long-term trend, this is a blip."

In the past, the so-called "99 per cent" may not have felt the economic stagnation so acutely because they could mask it with home equity loans and cheap technology, said Lars Osberg, chair of economics at Dalhousie University.

As the divide widens, however, the reality becomes harder to ignore, he said, adding both public and private sector would need to take on major changes to level the playing field.

Lee said he believes Canada's "Occupiers" have legitimate grievances when it comes to government accountability, saying those who take to the streets to protest a lack of grassroots influence on social policy have every reason to be upset.

Efforts like the federal Accountability Act and so-called "sunshine laws" that disclose public-sector salaries higher than $100,000 have done little to make everyday people feel they have a say in the way the country is run, he said.

"A lot of legislation has moved towards transparency to bring decision making out of the back rooms and into the exposure of the light of day," Lee said.

"Even though we've been doing that for the past 20 or 25 years, I think there is a sense of frustration by many ordinary Canadians that they're looped out and that their views don't count. I think it's legitimate, and it's very difficult to address."

FOLLOW HUFFPOST CANADA BUSINESS

TORONTO - The income disparity that has prompted thousands of people to "Occupy Wall Street" in the U.S. is less of an issue in Canada, where the movement seems to have less momentum than its more rob...
TORONTO - The income disparity that has prompted thousands of people to "Occupy Wall Street" in the U.S. is less of an issue in Canada, where the movement seems to have less momentum than its more rob...
Filed by Kenny Yum  | 
 
 
  • Comments
  • 43
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
03:23 AM on 10/20/2011
Canadians will do little until the wolf is at the door. Right now in America, the wolf is at the door. In Canada, across the street! In places like Libya, Egypt, Darfur, and many others, the wolf is in the pantry!
Although we like to think we're different, we're the same as all the others. Until our backs are against the wall, we won't turn off the TV long enough to really think about things. It won't be until the TV goes off, the current is cut, and the stores empty, that we act en mass.
As for this article. Its pathetic to hear the MSM try to spin this to make it sound like somehow we're safe from it. We're not safe! Sooner or later, the wolf will be in our faces! What disturbs me is the MSM is not actually looking at, or asking the right questions at all. The right questions are: Just what is the result of corporate interest on our society? What is the end result of placing the "economy" over the welfare of the planet? And why have so many people become so totally alienated and turned off they no longer even bother to take part in their democracy?
photo
HUFFPOST SUPER USER
feuille derable
La République du Canada
10:15 PM on 10/19/2011
We should occupy, instead, the House of Commons. Get rid of Harper and his royalist buffoons. Don't let the dreams of Trudeau, a true statesman, die.

Canada, ca nous appartient.
HUFFPOST SUPER USER
TwoZeroOZ
02:38 AM on 10/20/2011
Royalist?
A royalist.... alright, can you provide some evidence of "royalism"? in the House of Commons? No? You mean this post was just a selfish outlet? Ok. Just checking.
photo
HUFFPOST SUPER USER
Peacefrogg
01:33 PM on 10/19/2011
The Canadian Government back in the 1980's stopped monitoring inflation, if certain living expenses like rent/mortgage, fuel, groceries used to go up then interests rates would follow.
Housing markets have been over inflated in Canada for the past two decades, homes worth $100,000.00 are selling for five times that value or more in some cases and yet the average family income in Canada is about $63,000.00/year. Groceries, utilities, car payments, insurance, clothing can all be included and the end of the day doesn’t really leave much for savings.

I support the people of the United States not just because they are Canada’s largest trading partner, but because their citizens are in need of our support, just like the rest of the world that is facing financial ruin. It is time to re-build, reform, re-structure and regulate that destructive force called Capitalism, the damage is done and the deniers are out in full force, it is time to implement a system that works fairly for the 99 percent.
HUFFPOST SUPER USER
TwoZeroOZ
06:12 PM on 10/19/2011
"The Canadian Government back in the 1980's stopped monitoring inflation"
Do you mean they temporarily stopped monitoring inflation? Because Stats Can currently does monitor it. If so, how is this relevant?

"Housing markets have been over inflated in Canada for the past two decades, homes worth $100,000.0­0 are selling for five times that value"
Do you have any way of backing up this claim? Only investment markets can ever be considered "over inflated". It's not logically possible for a typical residential home to be "over inflated". Value is what someone will pay for it - if I buy a house for $500,000 and can expect to sell it for that or more, then how on earth is the value only $100,000?
photo
HUFFPOST SUPER USER
Peacefrogg
06:40 PM on 10/19/2011
Sure i have lots of ways of backing up my claims, considering half my friends work in the construction industry or sell homes for a living.

If the Bank of Canada would have raised the interest rates to offset the tide of greedy behaviour from Realtors and Developers we would not have seen over inflated unrealistic pricing and young families would not be burdened with 35 year mortgages.

Right now on Vancouver Island there are communities with absolutely no real paying jobs, no prospects for their young but everybody wants $400,000 for their homes. There are hundreds of homes for sale in these towns and it seems to me we should be heavily into a buyers market, but according to our local realtors not so, help me out here how one sided does it have to get before we find ourselves in a US style bubble.
HUFFPOST SUPER USER
coutnac
01:18 PM on 10/19/2011
no thank god we don t have all the problems the american have ,because our Conservative
are NORMAL AND NOT ONLY THINK ABOUT THE RICH !
photo
HUFFPOST SUPER USER
cwebster
predominantly exasperated
09:09 PM on 10/19/2011
Well, give Harper time, and he'll mess us up. He's a Republican wanna-be.
HUFFPOST SUPER USER
olitenup
12:33 PM on 10/19/2011
They are smart to start now...we in the US waited way too long.
photo
HUFFPOST SUPER USER
Robert Fanney
Scribbler
12:03 PM on 10/19/2011
The issue for Canadians is that corporate greed has gone global. Americans aren't the only ones suffering from an epidemic of cuts to top marginal taxes and social programs -- now the problem is migrating from country to country. The rhetoric sounds the same everywhere -- that tax and program cuts will magically spur economic growth that is beneficial to all. In truth, the benefit is transferred to the top. So citizens in countries around the world need to stand up and fight corporate greed. We need to fight for a healthy middle class and a lessening of the divide between rich and poor. We need to fight for a living wage. We need to fight for union representation on a global scale. We need to fight for more taxes on the rich. We need to fight for lower CEO pay and compensation. We need to fight for less corporate profits and more corporate investments in society. We need to fight the notion of corporate personhood and limit corporate rights to non-citizen status. We need to fight to reinstate or establish key regulations, like Glass Steagall, that will prevent banks and investment banks from becoming bad actors.

The fight will be long, harm, and filled with set-backs. But it is a fight that must be undertaken if we are to preserve a benevolent civilization.
HUFFPOST SUPER USER
TwoZeroOZ
06:16 PM on 10/19/2011
Nations need to think about being competitive in the world, and attracting corporations. If America has an obscenely low tax rate for corporations, then so must the rest of the world in order to stay competitive. America was the start of the problem. And as you said, the problem has spread to the world and nothing short of a global agreement on tax rates will fix the problem.
This comment has been removed due to violations of our [Guidelines]
11:24 AM on 10/19/2011
The problem here in Canada a classic one: death by cuts.

In order for corporations to profit from such things as social welfare and health care they are doing the classic maneuver of slowly cutting services. Every year we have to pay more and more out of pocket for health care and are being told to "buy insurance" to cover the rest.

The rule of thumb is "no preventative testing unless there's already signs of the disease". And people are dying.

I the world of social services some of the sickest of our population are helped so little that it looks, from the outside, that they are just letting people die as it is more cost effective.

In my town of 20,000 we are the 2nd largest retirement community in the country and the center of social services in our province. I see it every day. My nurse friends are all burned out from being told not to give any high level of care to people over 70. The Emerg' here routinely kills people by sending them home - even after strokes or heart attacks - which they routinely misdiagnose.

That's what *we* should be protesting - the American-Corporate Invasion!
HUFFPOST SUPER USER
TwoZeroOZ
06:18 PM on 10/19/2011
I don't understand your rational.

In order for WHICH corporations to profit? WHICH corporations are profiting from increased health care costs? WHICH corporations both profit and have influence over health care costs? HOW are these corporations influencing health care costs?
08:59 AM on 10/19/2011
There are 35 million Canadians - The States has 15 to 20 million illegals alone sucking from the system. The ability to control your economy and entitlement system relative to wealth redistribution cannot be compared to The USA.
09:18 AM on 10/19/2011
Its more like you are sucking from the illegals. They pay your taxes but don't get the benefits and they work for next to nothing so that you can have cheap products. Think about it, illegals have been in the country for years yet they haven't been rounded up and deported, why? The reason is THEY ARE SUPPORTING YOU. Get a CLUE.
09:40 AM on 10/19/2011
I see you are Canadian as you have no knowledge of reality regarding illegals. They pay no taxes. They repatriate the greater % of their earnings back to the country of origin. Hospitals, clinics and health care service are required to treat them even though they don't/can't pay. They have access to any number of entitlement programs where they take advantage of various programs at taxpayer expense. The greater percentage of peoples incarcerated in the larger states are illegals who the US taxpayer is paying for.

You don't know your butt from a hole in the wall - best you be quiet instead of proving your ignorance.
This comment has been removed due to violations of our [Guidelines]
photo
HUFFPOST SUPER USER
Peacefrogg
01:37 PM on 10/19/2011
Well then tell them rich baggers who continue to use Mexicans as cheap labour on their farms and constructions sites to quit hiring them then there wouldn't be any disparities.
08:18 AM on 10/19/2011
Cdns are less upset than the Americans for various reasons. Certainly the casino capitalism in the US has caused greater problems there, but Cdns are by and large also raised to be less agressive and more civilized than their US cousins. And also, the media in Canada keeps Cdns pacified with a stream of pablum designed to keep the lid on a pot that could well be boiling if people understood better what was happening. For example, over the last 30 years during which the government has been claiming poverty and slashing social programs of all sorts, they have paid some two trillion dollars in "service charges" on debts that should never have been incurred in the first place. A case of blatant fraud that, I think, at least a few people would be getting upset about if they understood what was actually going on here. More here - food for the protest, and more - What Happened? http://www.rudemacedon.ca/what-happened.html
09:00 AM on 10/19/2011
"raised to be less agressive and more civilized than their US cousins."

You mean wussies?
photo
HUFFPOST SUPER USER
gx5000
Life's too short, be happy..
10:06 AM on 10/19/2011
Hey Yank, take off hein ?
aintnoliberalnow
Old,cranky and retired
11:31 AM on 10/19/2011
No, just better behaved, more social awareness, less bigoted, not as loud, more realistic and a damned sight more compassion and willingness to accept change.