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Contents contributed and discussions participated by dylan huber

dylan huber

Canada discovers trickle-up economics - 0 views

  • there’s been a massive transfer of income and wealth from Canada’s middle and lower class to the rich.
  • some degree of inequality is inevitable and even desirable (allowing bigger rewards for those making bigger contributions), the level of inequality that exists today in the Anglo-American countries — the United States, Britain and Canada — is extreme
  • virtually all the income growth in the last 30 years has gone to the top.
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  • less equal societies almost always have more violence, more disease, more mental health problems, higher infant mortality rates, reduced life expectancies, as well as less social cohesion.
  • average CEO was making about 25 times the average worker in the late 1970s, today’s average CEO makes roughly 250 times the average worker.
  • evidence linking extreme inequality with serious economic problems. The level of inequality reached in 2008 was virtually identical to that of 1929, suggesting that large concentrations of wealth at the top create a dynamic leading to reckless financial speculation and Wall Street crashes
  • people in less equal societies have reduced social mobility.
  • the top-earning 1 per cent of Canadians almost doubled their share of national income, from 7.7 per cent to 13.8 per cent, over the past three decades.
dylan huber

Tax policies may aggravate gap between rich and poor - thestar.com - 0 views

  • , Canada is witnessing a phenomenon in which the most wealthy are enjoying stunning increases in their income while the rest of society stagnates.
  • Angel Gurria, head of the industrialized world’s main think tank, is warning that income equality is becoming a “serious threat.”
  • According to Toronto research agency Investor Economics, the richest 3.8 per cent of Canadian households controlled 66.6 per cent of all financial wealth (not counting real estate) by 2009, up from 60.6 per cent in 2005
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  • economists say the benefits to the rich from these tax breaks will far outweigh anything seen by other members of society.
  • single parents, who account for one in five families with young children and have the highest rate of poverty in this country.
  • “The families that will most benefit from Harper’s income-splitting promise will be those who need the least help,” says Armine Yalnizyan, an economist with the Canadian Centre for Policy Alternatives. “The higher the income, the bigger the tax break.”
dylan huber

Economic news fl ash: Inequality is complex - 0 views

  • in most places growth was more rapid at the top than at the bottom of the income distribution.
  • Canada's numbers were 0.9 and 1.6, the United States' 0.5 and 1.9.
  • incomes at the top grew more quickly than incomes at the bottom.
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  • deregulation, free trade, fiscal conservatism (yes, that would be neo-liberal conservatism) -are rewriting the post-war economic and social contract at the expense of the poor and to the benefit of the rich.
  • globalization may be playing a part.
  • Technology also plays a role
  • Changes in household size do seem to be part of the problem. In most countries, there are fewer people per household. Across the OECD, the number of households with only one head has risen from 15% to 20% of the total.
  • If more families are smaller and therefore not enjoying such economies of scale, more are going to be poorer.
dylan huber

Relation between income inequality and mortality in Canada and in the United States: cr... - 0 views

  • Canadian provinces and metropolitan areas generally had both lower income inequality and lower mortality than US states and metropolitan areas
  • 1% increase in the share of income to the poorer half of households would reduce mortality by 21 deaths per 100000.
  • income inequality was not significantly associated with mortality.
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  • Canada seems to counter the increasingly noted association at the societal level between income inequality and mortality.
  • no relation within Canada at either the province or metropolitan area level
dylan huber

Does Income Inequality Help Cause Financial Crises? « naked capitalism - 0 views

  • high levels of income inequality stoke financial crises
  • Richard B. Freeman, an economist at Harvard, is comparing about 125 financial crises around the globe that occurred over the last 30 years. He said inequality soared before many of these crises.
  • ncome inequality is either a symptom of conditions that can produce bank crises (like excessive financailization of an economy) or a secondary contributor.
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  • large scale international capital flows would be associated with the prominence of large international ventures which again could distribute a lot of winnings to a comparatively small (in societal terms) number of beneficiaries.
dylan huber

Income inequality | The Economist - 0 views

  • Despite a quarter century during which incomes have drifted ever farther apart, the distribution of wealth has remained remarkably stable. The richest Americans now earn as big a share of overall income as they did a century ago, but their share of overall wealth is much lower. Indeed, it has barely budged in the few past decades.
  • distribution of wealth has remained remarkably stable. The richest Americans now earn as big a share of overall income as they did a century ago, but their share of overall wealth is much lower. Indeed, it has barely budged in the few past decades.
  • Productivity and globalisation have caused real income to rise much faster for those at the top of the income distribution than it has for the poor and middle class. High earners experienced more than a 30% increase in their real income over the last thirty years. Meanwhile, the bottom 50% of wage earners saw their real income increased by only 5-10%.
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  • Whether these shifts were good or bad depends on your political persuasion. Those on the left lament the gaps, often forgetting that the greater income disparities have created bigger incentives to get an education, which has led to a better trained, more productive workforce. The share of American workers with a college degree, 20% in 1980, is over 30% today.
  • the focus should be on giving everyone a an equal chance to be successful. This might mean making the tax code less regressive by expanding the earned income tax credit, eliminating tax subsidies to the rich, and improving access to quality education. 
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