November 30, 2007
Senator Tom Kent was a guest on the popular weekly television show Front Page Challenge with host Fred Davis and panellists: Pierre Berton, Betty Kennedy, Gordon Sinclair on Dec. 6, 1981. He managed to stump the panellists.
“Senator Tom Kent was the head the 1981 Royal Commission on Newspapers called the Tom Kent Commission. Kent described the state of media concentration such as newspaper monopolies in Canada as “monstrous.” The Kent Commission made some tough recommendations. These included making Thomson sell its recently acquired flagship paper, the Globe and Mail, putting a stop to Southam’s expansion, and breaking up regional monopolies like the Irving empire in New Brunswick (CBC 1981).”.
The commission want[ed] to forbid companies from owning newspapers and television or radio stations in the same market. Both publishers and reporters attack[ed] the Kent report saying it [was] too harsh. They sa[id] the commission want[ed] to put the government in the newsrooms of the nation, which would infringe upon their freedom (CBC 1981).”
“The Kent Commission wasn’t exclusively about concentration of media ownership but also looked at press councils, quality of print journalism in Canada and new technologies such as the introduction of computers in newsrooms. Kent proposed a Canada Newspaper Act aimed at controlling media concentration, particularly cross-ownership of newspapers and other media. But the government largely ignored Kent’s recommendations as it did a decade earlier with the Davey report (CBC 1981).”
CBC placed this story under Politics and Economy > Concentration to Convergence: Media Ownership in Canada > Tom Kent stumps Front Page Challenge panel
December 16, 2006
2012-01-21 “Steve Kaplan of the University of Chicago thinks finance explains much of the rise in inequality. Updating a series developed by Thomas Piketty and Emmanuel Saez, Mr Kaplan notes that the share of income going to the 1% reached an 80-year high of 23.5% in 2007, only to sink to 17.6% in 2009 as the financial markets deflated. The trend is even more pronounced for the top 0.1%, whose share of total income rose to 12.3% in 2007 but sank to a still disproportionate 8.1% in 2009 (The Economist 2012-01-21).”
2012-01-16 While the gap between rich and poor in Canada continued to increase, Canada, along with Denmark, Norway and other Scandinavian countries, is a world leader in economic mobility. Americans have less economic mobility than their peers in Canada. … “Canadians shouldn’t be complacent. Ottawa and most of the provinces are running large budget deficits, and education and health care are already targets as governments hunt for savings (McKenna 2012-01-16).”
2011-12-02 New York Gov. Andrew M. Cuomo and legislative leaders, consider raising income taxes on wealth while cutting them for the middle class as they seek ways to shore up a state budget strained by the weak economy. He was partly influenced by the Occupy movement (Kaplan 2011-12-02).
2010-03 “On average Canada is up to three times more mobile than the United States. Or another way of putting it, up to three times as much inequality is passed across the generations in the United States than in Canada. Furthermore, these differences arise from differences in the extremes of the earnings distribution: there is notably less mobility at the very top and the very bottom of the American income ladder.” . . Education is a provincial responsibility in Canada but financial resources are not linked to property taxes but to the province-wide income tax unlike the United States. Poorer neighbourhoods fare better with the Canadian method. However, as income inequality rises opportunities for upward mobility for future generations may be in jeopardy as wealthy Canadians form American-style exclusionary institutions and as cities like Toronto become increasingly polarized. In Toronto, Vancouver and Calgary neighbourhoods are becoming more sharply divided along income and ethnic lines (Corak, Curtis and Phipps 2010-03).
2006-12-16 Wealth disparities are a serious concern and will intensify in 2007 according to TD economists Drummond and Tulk. The net worth of the lowest quintile fell to a negative net worth from zero while national net worth grew 2.8% in the last quarter of 2006. Less than 10% of families who hold at least 53% of total Cdn. net worth ($4.8 trillion). read more | digg story
This is a draft is being written on line back and forth between articles, EndNote, zotero and the slow world. It is currently being updated.
OECD Record inequality between rich and poor
According to TD Bank Financial Group Economists Drummond and Tulk (2006) wealth disparities will intensify. They paint a dismal picture for Canadians excluded from the top quintile. Prospects are bright for Canada’s 22 billionaires and others in that elusive group of Ultra High Net Worth (UHNW) ie c. .004 % of Canadian families (Stenner et al., 2006), who hold more than $10,000,000 in assets. In sharp contrast to Canadians in the four lower quintiles, the UHNW benefited with large increases in wealth since 1984. Unlike real estate held by the lower quintile, these rare families saw their luxury homes, properties, businesses and collections rise in price. With these additional assets they were able to invest, many in tax-free RRSPs, so their net worth grew. “If investment returns rise the trend towards growing wealth disparities will likely intensify. This could be compounded by sluggish wage gains in the low end and the financial challenge of immigrants – the main source of growth in the younger, less affluent population (Drummond and Tulk, 2006).”
Considerable wealth was accumulated in Canada between 1999 and 2005. In 2005 net worth increased by 41.7% to nearly $1.5 trillion (US?). The most recent Statistics Canada report revealed today that the Canadian national net worth reached $4.8 trillion by the end of the third quarter. While in terms of an economist’s algorithm this translates into an average of $146,700 per person. In reality only the a tiny number of Canadian households benefited. “The gain in net worth resulted from an increase in national wealth (economy-wide non-financial assets) as well as a sharp drop in net foreign debt. National net worth grew 2.8% in the third quarter, the largest increase in more than two years (Statistics Canada 2006)”.
Drummond and Turk are concerned that in spite of the dramatic growth in Net Worth, there is a significant portion of the population with little or negative Net Worth (debts/assets ratio) in 2005. Although Drummond and Turk cite the World Institute for Development Economics Research as their source in regards to situating the seemingly overwhelming disparity between the 10% of households that are extremely wealthy and the lower quintiles. (I believe they refer to reports by Senior Researcher of the World Institute for Development Economics Research (WIDER) of the United Nations University, Mark McGillvray(2005) whose research is available only on the deep Internet — an exclusive members-only club.) For the first time however, 165 of the UNHW families accepted to be interviewed by the Stenner Group. The True Wealth Report (Stenner 2006) reveals that the most popular past times of UNHW are traveling (particularly to London, Paris, Vienna, New York and Vancouver staying in ), playing golf and taking part in other sports, collecting art and antiques, drive BMW’s, Volvo’s or Porsches. They claim their philanthropy is tied to both their religious faith and strategic money management (Stenner et al., 2006) (Morissette and Zhan, 2006). According to Stats Can economists in their recent report who refer to research by Western University Economist James B. Davies and Shorrocks, Economist with the United Nations World University, it is to measure the actual holdings of the uber-wealthy. Forty-eight percent of Canadian wealth might be held by less than 1% of the Canadian population(Davies and Shorrocks, 2000, Davies, 2003). Western University Economist and co-author of publications with Shorrocks, editor for the United Nations World University publications and Financial Post journalist (Chevreau, 2003) both cited Shillington’s C.D. Howe Insitute report (2003), revealing an unintended disincentive for the those who earn under $50,000/annual to save. “Shillington (2003) has used Statistics Canada’s 1999 Survey of Financial Security to illuminate what he calls the “futile saving” problem. He looks, first, at the savings of “near-seniors”, those households where the older spouse is aged 55 – 64. He finds that 21% of these households have no retirement saving, and in total 53% have retirement savings of less than $100,000. On the grounds that savings of $100,000 would not permit the purchase of an annuity of more than about $10,000 Shillington believes that the majority of these people will be GIS recipients in retirement. Their savings are thus “futile”, since they will be at least half confiscated by the GIS taxback.17 Turning to actual GIS recipients, Shillington reports that about 23 percent have an RRSP, with an average value of $43,000; 29 percent have an RPP, with an average value of $65,000; and about 40% have either an RRSP or RPP. In Shillington’s view this represents the result of a gigantic fraud, however unintentional.
Governments and financial institutions have advertised the importance of saving for retirement very heavily, and the annual campaign to get RRSP contributions is a vigorous one. The voices warning low-income people that this is in no sense an “investment” are tiny ones (Davies 2003:28).” Shillington concluded that, poor seniors dependent on the federal Guaranteed Income Supplement (GIS) and its means-tested provincial and municipal counterparts should not bother with RRSPs. To do so means losing GIS benefits, rent subsidies, drug benefits, provincial aid programs like Ontario’s GAINs and similar welfare programs.” Once RRSPs create income from Registered Retirement Income Funds after 69, $1 in income reduces GIS benefits by 50¢. Since half of GIS recipients pay income tax, they face an effective marginal tax rate of 75% on extra income. In some cases involving dividend gross-ups, the effective top-rate savings may pass 100%, Mr. Shillington said. For them, “RRSPs are a terrible investment. They are victims of a fraud, however unintentional.” Saving $100,000 in RRSPs may be futile if that is your target. However, it does not mean younger people with $100,000 already saved should stop, as long as they are on the way to accumulating several hundred thousand dollars by the end of their working lives. “RRSPs can be dangerous to your financial health” is the subtitle of Free Parking, a self-published book by “reformed financial planner” Alan Dickson. “I totally agree with the report,” Mr. Dickson said. Citing 2001 Statistics Canada data, Mr. Shillington said of $1-trillion in retirement assets, $600-billion is in employer pensions, $340-billion in RRSPs and $70-billion in RRIFs (Chevreau, 2003).
“National net worth reached $4.8 trillion by the end of the third quarter, or $146,700 per person. The gain in net worth resulted from an increase in national wealth (economy-wide non-financial assets) as well as a sharp drop in net foreign debt. National net worth grew 2.8% in the third quarter, the largest increase in more than two years (Statistics Canada 2006)”. Clever people like Derek Foster who know how to work the system trigger angry responses against publicly-financed assistance for the lowest quintile. (Heinzl, 2005) Foster (born c. 1961) began making astute investments while still in university. He learned from finance gurus Peter Lynch and Warren Buffett. In 2005 he continued to earn enough from his total investments (which total six digits) in Starbucks, Colgate-Palmolive, Rothmans Inc., Royal Bank of Canada, Corby Distilleries Ltd., Manulife Financial Corp., George Weston Ltd., Pembina Pipeline Income Fund, Canadian Oil Sands Trust and a dozen or so others, that he and his family of four can live modestly without ever having to work again. Their low income c. $30, 000/annual actually allows them to enjoy certain publicly-financial benefits designed for low-income earners with no assets (Heinzl, 2005). Others include Dianne Nahirny’s Stop Working, Start Living (http://www.smartmakeovers.com) and Alan Dickson’s Free Parking and Advance to Go (http://www.freemoneypress.com)(McGillivray, 2005)
With more than a billion people living on less than one dollar per day, some evidence of increasing gaps in living conditions within and between countries and the clear evidence of substantial declines in life expectancy or other health outcomes in some parts of the world, the related topics of inequality, poverty and well-being are core international issues. More is known about inequality, poverty and well-being than ever before as a result of conceptual and methodological advances and better data. Yet many debates persist and numerous important questions remain unanswered. This book examines inequality, poverty and well-being concepts and corresponding empirical measures. Attempting to push future research in new and important directions, the book has a strong analytical orientation, consisting of a mix of conceptual and empirical analyses that constitute new and innovative contributions to the research literature.Mark McGillivray is a senior researcher with the World Institute for Development Economics Research (WIDER) of the United Nations University.
Carroll, James. 2011-01-03. “Now the rich get richer quicker.” Boston Globe.
Chevreau, Jonathan (2003) RRSPs a bad option for low-income earners Financial Post.
Corak, Miles; Curtis, Lori; Phipps, Shelley. 2010-03. “Economic Mobility, Family Background, and the Well-Being of Children in the United States and Canada.” IZA DP No. 4814. Discussion Paper No. 4814. Forschungsinstitut zur Zukunft der Arbeit/Institute for the Study of Labor.
Davies, James B. (2003) Social and Economic Risks to Seniors in Ontario. Ontario Panel on the Role of Government (OPRG). Toronto.
Davies, James B. & Shorrocks, Anthony F. (2000) “The Distribution of Wealth.” In Atkinson, A.B. and Bourguignon, F. (Eds.) Handbook of Income Distribution.
Drummond, Don & Tulk, David (2006) Lifestyles of the Rich and Unequal: an Investigation into Wealth Inequality in Canada. TD Bank Financial Group.
The Economist. 2012-01-21. “Income inequality: Who exactly are the 1%?”
Frank, Robert H. 2010-10-16. “Income Inequality: Too Big to Ignore.” New York Times.
Heinzl, John (2005) The ‘Youngest Retiree’ Tells How To Punch Out Of The Workplace. Globe and Mail.
Kaplan, Thomas. 2011-12-02. “Income Taxes for Wealthy May Increase in Albany Deal.” New York Times.
Krugman, Paul. 2010-09-19. “The Angry Rich.” New York Times.
McGillivray, Mark (2005) Inequality, Poverty and Well-being, Helsinki, Finland, Palgrave Macmillan.
Mcgran, Kevin (1998) Anti-poverty activists take case to the United Nations. The Canadian Press. Toronto, ON.
McKenna, Barrie. 2012-01-16. “In Canada, unlike the U.S., the American dream lives on.” Globe and Mail.
Mcquaig, Linda (1995) Shooting the Hippo: Death by Deficit and Other Canadian Myths, Toronto, Viking
Mcquaig, Linda (1998) The Cult of Impotence: Selling the Myth of Powerlessness in the Global Economy, Toronto, Penguin Books
Morissette, René & Zhan, Xuelin (2006) Revisiting Wealth Inequality. Perspectives on Labour and Income. Ottawa, ON, Statistics Canada.
Shillington, Richard (2003) New Poverty Traps: Means-Testing and Modest-Income Seniors. C. D. Howe Institute. Backgrounder. 65.
Statistics Canada. (2006). “National balance sheet accounts: Third Quarter”. Press Release. Ottawa, ON. December 15, 2006.
Stenner, Thane, Bower, Rod, Currie, John & O’connor, Rory (2006) True Wealth Report: Values and Views of Ultra-Affluent Individuals, Vancouver, BC, T. Stenner Group ™.
Flynn-Burhoe. 2007. “Wealth Disparities Will Intensify as UHNW Get Richer.” http://docs.google.com Flynn-Burhoe. 2007. “Wealth Disparities Will Intensify as UHNW Get Richer.” Papergirls Blog. December 16, 2006. Creative Commons License 2.5 BY-NC-SA
Filed in Risk Society, social exclusion, Social Justice, UHNW, vulnerability to social exclusion, wealth disparities in OECD
Tags: 1%, angry rich, Canadian Policy Research Network, CBC, CPRN, cult of impotence, distribution of wealth, economic efficiency model, economic risks, Economics, financial security, futile saving, GIS, GIS taxback, global economy, hedge fund republic, income inequality, inequality, low-income, myth of powerlessness, net worth, Occupy, poverty, poverty traps, RRSP, Shillington, social capital, social exclusion, social risks, UHNW, wealth disparities, wealth disparities will intensify, well-being
November 25, 2006
Child poverty in Canada is almost six time that of Denmark. Overall poverty rates are also high. 10 % of Canadians live in poverty – a stark contrast to Denmark’s 4.3 % and Sweden’s 5.3. (Rothman, Laurel. 2006. “Report of a Standing Committee on Finance,” www.campaign2000.ca) Recommendations: minimum wage $10 per hour; Employment Insurance reform.
CBC, 2006. Aboriginal children face terrible poverty in Canada: report: B.C. and Newfoundland have highest rates; Alberta and P.E.I. have lowest rates. Last Updated: Friday, November 24, 2006 | 2:04 PM ET, Accessed November 24, 2006 11:19 PT.
Flynn-Burhoe, Maureen. 2006. “Canada’s nasty secrets revealed to OECD: Child Poverty in Rich Countries,” last updated November 24, 2006 11:05 am. papergirls.wordpress.com, accessed (YY/MM/DD) http://papergirls.wordpress.com/2006/11/25/canadas-nasty-secrets-
Laurel Rothman, Laura. 2006. “Reducing Child & Family Poverty in a Time of Prosperity: The Roles of Tax Benefits, Public Investments and the Labour Market Submission to Standing Committee on Finance Pre-Budget Consultation,” http://www.campaign2000.ca/rc/rc06/06_C2000NationalReportCard.pdf Last updated YY/MM/DD Accessed November 24, 2006.
Selected webliography on Status of Women Canada generated from my Endnote bibliography, compiled from (1992?-present)
Dion-Stout, Madeleine & Kipling, Gregory D. (1998) Aboriginal Women in Canada: Strategic Research Directions for Policy Development. http://www.swc-cfc.gc.c/publish/research/abwom-ehtml
Dion Stout, Madeleine & Kipling, Gregory D. (1998) Aboriginal Women in Canada: Strategic Research Directions for Policy Development. Ottawa, ON, Status of Women Canada. http://www.swc-cfc.gc.ca/pubs/0662634314/199803_0662634314_e.pdf
Frulla, Liza (2005) Statement of Canada. United Nations Commission on the Status of Women 10-year Review of the Implementation of the Beijing Platform for Action. http://www.swc-cfc.gc.ca/newsroom/news2005/0302_e.html
Gender Equality, Aboriginal Women (2000) Roundtable Report. Ottawa, Aboriginal Women’s Roundtable on Gender Equality. http://www.swc-cfc.gc.ca/publish/table/010914-e.pdf
Jenson, Jane (2004) A Decade of Challenges; A Decade of Choices: Consequences for Canadian Women. Montréal, Canadian Policy Research Network-Family Network. http://www.cprn.com/en/doc.cfm?doc=558
Kenny, Carolyn, Faries, Emily, Fiske, Jo-Anne & Voyageur, Cora (2004) A Holistic Framework for Aboriginal Policy Research. http://www.swc-cfc.gc.ca/pubs/0662379594/200410_0662379594_1_e.html
Kipling, Dion-Stout and Gregory D. (1998) Aboriginal Women in Canada: Strategic Research directions for Policy Development. http://www.swc-cfc.gc.c/publish/research/abwom-ehtml
Lindsay, Colin, Almey, Marcia & Statistics Canada (2004) A Quarter Century of Change: Young Women in Canada in the 1970s and Today. Ottawa, Status of Women Canada (SWC) Policy Research Fund. http://www.swc-cfc.gc.ca/pubs/0662388976/200412_0662388976_1_e.html
Press Release (1998) Fry welcomes gender breakthrough in APEC. Manilla, Phillipines. http://www.swc-cfc.gc.ca/newsroom/news1998/1019-2_e.html
SWC (1995) Setting the Stage for the Next Century: The Federal Plan for Gender Equality. Status of Women Canada
SWC (1999) Highlights of Federal Government Initiatives to Address Violence Against Women: Legislative Reforms That Assist in Addressing Violence Against Women in 1999: Bill C-79. Status of Women Canada. http://www.swc-cfc.gc.ca
Voyer, Jean-Pierre (2003) Introduction: Social Capital: A Useful Tool for Public Policy? in Initiative, Policy Research Horizons. Public Works and Government Services Canada. http://policyresearch.gc.ca/v6n3_e.pdf
Filed in Aboriginal Women in Canada, child poverty, critical ethnography, CulturalAnthropology, First Nations, human rights, Memory Work, Nunavut, OECD, Public Policy, social exclusion, Social Justice, urban ethnography, vulnerability to social exclusion, webliographies
Tags: .rss, Aboriginal Women in Canada, African Canadian history, Arctic exiles, Beijing Platform for Action, Campaign 2000, Canada's nasty secrets, Canadian Policy Research Network, CBC, child poverty, CHRC, communal archives, CPRN, cyber citizens, digg, economic efficiency model, EndNote, ethical topography of self and the Other, Ethical turn, First Nations, First Nations social history, forgetting, Gulf Islands, homelessness, Horizons. Public Works and Government Services Canada, Hulquminum, Inuit, Inuit Art Quarterly, Inuit social history, Jane Jenson, Jean-Pierre Voyer, Kuper Island, land claims, Madeleine Dion-Stout, Make Poverty History, memory, minimum wage, Nunavut, OECD, Policy Development, policy research, postcolonial, RCAP, relocations, social capital, social exclusion, Statistics Canada, Status of Women Canada, SWC