Income inequality has been a creeping problem in Canada and other advanced economies for many years now. Yet income polarization has not, up until now, been a big issue on the federal agenda.
It is time for the federal government to analyze and consider the longer term effects of income polarization, and to consider strategic policy reforms to head off a looming problem.
Income inequality is at a record high in the OECD countries. In the US it has become a major issue in the presidential campaign, even amongst Republicans, and is now viewed as the most divisive social issue in the country.
There is little agreement on the causes of income inequality, though globalization and the technology revolution likely contribute. A key conclusion of the recent OECD report, Divided We Stand, is that inequality is not inevitable and that policy measures makes a real difference to the distribution of income.