Research Shows The Canadian Dream Is Fading
It’s becoming increasingly more difficult to realise the ideal of improving your material well-being for the sake of giving your children a better shot at success than you had, new research seems to suggest. This means it’s becoming harder and harder to follow the “Canadian dream” and making the challenge even more difficult is the global health crisis.
Research by StatCan took into account the tax records of five groups of Canadians born between the years 1963 and 1982. The outcome of the study suggests that a Canadian national born in 1982 to parents earning in the bottom fifth of earners, is up to 22% more likely to stay in that particular earning division than a fellow countryman born 19 years earlier.
Furthermore, the study also concludes that a Canadian national born in 1982 to folks among the top fifth of earners is 13% less likely to fall into the bottom fifth earning division as someone born to Canadian parents in 1963.
In short, it’s becoming increasingly harder for Canadians to gain wealth and get richer.
The Undeniable Link
Researchers at StatCan also note that it has become harder for Canadians to get richer proportionally to the levels at which the income inequality gap has grown. So strong is the link between these two, that StatCan says it’s unlikely to be a thing of chance or happenstance.
But inequality is on a steady rise across all G7 countries – not just Canada, says a senior economist at TD Bank, Sohaib Shahid. And this is a gap that is on the increase not only between generations, or young and old, but also between high skilled and low skilled workers.
Bridging The Inequality Gap
As for possible solutions for keeping the Canadian dream alive, Shahid points out in the report that the onus now falls largely on governments to declare war on inequality, and to do so before the negative effects thereof do any more damage than what’s already been seen during the global health crisis.
Help should be extended to those most in need thereof, continues the report, and this help should not be plugged prematurely. The right kind of help for an ample amount of time will ensure people are able to get back to work and back on their feet as economies around the world begin to recover, explains Shahid. The quicker this happens, the better for Canada and its people.