The troubling rise of income and wealth inequality in Canada – Policy Options

July 18, 2024

As the wealth gap becomes more pronounced, a comprehensive and co-ordinated approach is urgently needed to target root causes of economic disparity.

Income and wealth inequality is a persistent and growing challenge in Canada. This is occurring at a time when the cost of living has risen sharply and the lowest-income households find themselves without adequate income or savings to afford basic necessities.

Action is urgently needed. To reduce widening disparities and alleviate pressure on the lowest-income households, governments should expand and target income supports to those who need them most, make the tax system more progressive, enhance social-assistance programs and remove systemic barriers that prevent people from accessing these programs.