The case for leaning against income inequality in Canada /

Whereas rising productivity is traditionally thought to increase the income pie that is then split between capital and labour, the U. S. experience shows the vast majority of the gains from higher productivity going to capital or the very wealthy over the last few decades. [...] The fact that Canada has not seen more hollowing out of the middle class, like the experience in the U. S., is primarily due to the commodity and housing boom. [...] The income of the richest 10% opportunities to make the tax and transfer system more pro- of the population has increased to close to nine times that gressive and redistributive. [...] Canada traditionally compares on income equality falls from 9th place in the OECD on the itself to developments in the U. S., and income inequality basis of market income to 19th place on the basis of after-tax in America is higher than in Canada and has increased far and transfer income. [...] Indeed, a 2014 report from the IMF argued that economy) and America has the greatest share of income equality enhancing actions can improve economic perfor- going to the top 1% at 20% of total income – the highest mance in the long run.