[LINK] "Income gap growing wider"

[rfmcdonald]

Here's some more cheery economic news..

Poverty and inequality rates in Canada have been on the rise since 1995 and are now higher than the average developed nation, according to a new study.

The income gap is growing throughout the developed world, but the gap between rich and poor in Canada widened more dramatically than in most countries between 1995 and 2005, according to the report released in Paris today.

[. . .]

"After 20 years of continuous decline, both inequality and poverty rates (in Canada) have increased rapidly in the past 10 years, now reaching levels above the OECD average," says the report.

As in other countries, more single-parent households and people living alone are contributing to income inequality in Canada.

And wages for the rich are increasing, while they have been stagnating or dropping for middle and lower income workers, the report says.

Most affected have been young adults and families with children.

Canada spends less on cash transfers, such as unemployment and family benefits, than other OECD countries and that may be one of the reasons the country fares worse than others, the report suggests.

[. . .]

With U.S. Democratic leader Barack Obama ahead in the polls and promising to cut poverty in half in that country within 10 years, Canada may soon be one of the only developed countries without a detailed plan to address the problem.

But Lesley Harmer, a spokesperson for retiring Human Resources Minister Monte Solberg, said the government is "taking real action to support Canadians who need help."

In an email, she listed "vital social programs" the government is strengthening: the Working Income Tax Benefit; the recent extension of affordable housing and homelessness programs; the new retired disability savings program; $100 monthly child care benefits; and supports for seniors, skills training and post-secondary education.

When asked if the government plans to introduce a strategy with goals and timetables she said: "I think what I sent you stands."

The OECD report's homepage is here.