Canada's Rich Are Getting Richer. So Who Are They?
Filed under: Celebs & Money, Family Finances, Taxes, Weird & Wonderful
Canada's super rich are getting richer by the year and now rake in almost a third of Canada's income growth, according to a report by the Canadian Centre for Policy Alternatives -- an independent centre-left think tank. That's the biggest share of wealth the rich have ever accounted for in Canadian history.The report,The Rise of Canada's Richest 1%, found that the 246,000 Canadians that make up the country's richest 1% accounted for 32% of growth in incomes between 1997 and 2007. As with many national statistics, it will be some time before we can take a look at how the rich fared during the recession. Surely their profits and incomes took a hit. However, it is also reasonable to assume that many of those 246,000 super rich were generally not the ones standing in unemployment queues around the country. So it will be interesting to see what the figures show post-recession.
What we do know now though is how these statistics stack up to those over the past 90 years, and it is quite an eye opener.
Armine Yalnizyan, a senior economist at the think tank and the report's author, says the richest 1% now earn a bigger piece of the action than any other generation of rich Canadians. She says the last time Canada's elite held anywhere near as much of the nation's income in their hands, prior to the late 1980s, was in the 1920s.
"Even then, their incomes didn't soar as fast as they are today. It's a first in Canadian history and it underscores a dramatic reversal of long-term trends," Ms. Yalnizyan says.
Income Share Of Canada's Richest 1% Over Time:
- 1920-1928 -- 17%
- 1928-1947 -- 7%
- 1947-1957 -- 7%
- 1957-1967 -- 8%
- 1967-1977 -- 6%
- 1977-1987 -- 11%
- 1987-1997 -- 31%
- 1997-2007 -- 32%
The study notes Canada's tax system is playing a different role, too. In 1948, the top marginal tax rate was 80% but by 2009 it had been cut almost in half, to 42.9%.
So if 1% of Canadians soak up 32% of increasing wages, that leaves the remaining 99% of us to sharing a smaller than ever share of 68%. We're not necessarily getting poorer, but it does show that the income gap is widening substantially.So who are these super rich Canadians? According to Wikipedia, the top five are:
- The Thomson Family -- $23.36 billion net worth (owners of Thomson Reuters and Woodbridge Co.)
- Galen Weston -- $8.5 billion (owners of George Weston, Loblaws and Holt Renfrew)
- The Irving Family -- $7.46 billion (owners Irving Oil, J.D. Irving Ltd.)
- The Rogers Family -- $6.02 billion (owners Rogers Communications)
- James Pattison -- $5.53 billion (owns Jim Pattison Group)
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Gary,
I have read your comments above. I'm sorry to say that your poor grammer and spelling is indicative of your lack of education. You are no longer competing with Canadians for work but with people in India and China, most of whom have worked hard at educating themselves. I make many times what you claim to earn, but I have continued to educate myself all of my working life, bearing all of the cost myself. If a person is uneducated they shouldn't expect to earn much above minimum wage. I'm not sure what that is any more, but let's say it's $10/Hr, you would make about $20,000 per annum. However, due to certain legal impositions on companies to provide benefits etc after 22 hrs, most won't give you 40 hrs/week. So you need to have two jobs. That shouldn't be too difficult if your expectations are minimum wage. You might even need to do some additional work (delivering flyers in the evenings etc. Use some of the extra income to take some educational courses (I understand that we are short of plumbers, for example). Sounds tough? Consider this: as I said, I make many times what you do, but I bet that I work at least twice as many hours.
Big Money insures it stays that way. It's ranking of charity towards the Average Guy has always been very low. I doubt that's changed. I doubt they care about the "masses" at all, any more now that before. But they're chewing up more of the pie and insuring the "masses" are restless. This leads to bad things for everyone, including the 1% who may lose it all. An inequity in wealth within any country, leads to political instabilities and radicalism. Some of which we're starting to see now. The 1% should re:think their hoarding strategy.
October 26 2011 at 4:29 PM Report abuse Permalink rate up rate down Reply
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12-12-2010 @ 12:33AM
T. Kenny said...
This smacks more of political pandering than of economic study.
These, so called, researchers should know full well that this "zero sum" model of a nations wealth distribution is false. Wealth is not a fixed sum, like a pie where one individual's share comes at the expense of another's. Wealth is, in fact, created by the successful business activities of those who create it.
This garbage, masquerading as a study, is simple pandering to the political leanings of folks who don't care so much about how bad they have it as long as no one else has it any better,,sad!
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12-11-2010 @ 10:28AM
holland cross said...
Fight for Lower Taxes . Work Harder. Believe in Yourself.
Self Reliance will always win out. Know that Life is Short . Be Charitable. Be Kind.
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12-11-2010 @ 3:13PM
Gary Baggey. said...
I think that the rich people in Canada are putting more value on wealth then they are about human beings when we have homeless people and even the use for foodbanks are getting more and more every year there is something wrong.I worked for some rich companies and thier workers were living under bridges. .As a human being I can not except this.It says in the Holy Bible It Is Easier For A Camel To Get Through The Eye Of A Needle Then It Is For A Rich Man To Get Into Heaven.
Gary Baggey.
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12-11-2010 @ 3:58PM
Douglas Stevens said...
Sorry Mr. Baggey, but both you and the authors of this "study" are missing two very important points. Yes, their assets have grown, but they (the top 1%) STILL pay the biggest chunk of the taxes in this country that go to pay for narrow viewed studies such as this. Secondly, this wealthy group supports many, MANY of the charitable entities that help the very people that you describe and those "private" foundations are infinitely more efficient than the government at getting the help to those who need it. Look at the ridiculous "Sash for Clunkers" program in the US. For every $4,000 payment made to someone to buy a carf (in and of itself a moronic program), the government department responsible spent $20,000 to administrate it. I don't want to be in a country where hard work, skill and a little luck are to be vilified and penalized.
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12-11-2010 @ 4:24PM
Gary Baggey. said...
On a percent basis the wealthy pay less in taxes then the poor people. If every company paid a wage that we could live on there
would be no poverty in Canada becuase a living wage in Canada is the best way to create jobs.Our Gov. taxes us so the rich people can get a write off.from thier donations I will take $ 25.00 an hour over a free meal at the foodbank once a year.I have lost all respect for the rich companies. Did you ever work at Wallmart. Gary Baggey.
12-11-2010 @ 7:02PM
Canada is hopeless said...
My girlfriend makes $ 42,000 / yr. After federal, provincial and company deductions she takes home $ 18,500 !!!!!! Then, like all good little Canucks, she pays sales tax on everything she needs to live on. Then she pays all the license fees the government collects. So her government makes sure she gets way less than 50 % OF HER MONEY ! Oh and now that she has worked for almost 37 yrs. the government will take 38 % of HER PENSION if she retires at 60 !!! This too big and out of control govenrment is out of control. Go back to your smoke and mirror discussion now.
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12-11-2010 @ 8:00PM
Gary Baggey. said...
I read your comment about your girlfriends wages and taxes and it is a shame there is zero insentive for people to work in Canada.I would like to see a 25 percent income tax flat tax rate in Canada so all you would pay on one hundred thuosand a year you would pay $25.000.00 on that and the CEOs owe the same 25 percent on all of thiers.I would like to see companies pay thier 15 percent profit tax and when that profit is turned into
buying another company to avoid paying the tax then that new company that they bought they should pay the same on that as if it were a profit.We are getting guoged more then just at the pumps.Gary Baggey.
12-11-2010 @ 7:43PM
Harry said...
I don't care what a rich person makes; it's none of my business. Most people that are rich are that way because they worked very, very hard at. Some of those people are doctors, but also many of them are engineers, or inventors, who have invented something that people need. Those people, in turn, hire others to make and sell the product. The automobile and the refridgerator, for example.
One way that wealth is produced is when something is made, or taken out of the ground, or from a forest, and made into something or to be used for energy; it's not by wealth redistribution.
Start saving when you are young, even if it's only 10 dollars a week; over 30 years, invested in a good quality mutual fund, would amount to $100,000.
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12-11-2010 @ 7:47PM
I hate money said...
I agree with Canada is hopeless. Clearly, multi-national corporation and government are bankrupting North America. Henry Ford had a great idea - and it wasn't the auto assembly line. His idea was to pay your workers a decent salary and hopefully, in return, they will be able to buy your product and keep you in business. Clearly, this idea has been forgotten. There is no sustainability in the direction the economy is headed in. The recession we are trying to recover from is just a prelude to what we are going to see. And our out of touch government just can not seem to see that there is no such thing as corporate responsibility both in industry and in government. I hate money.
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12-11-2010 @ 8:14PM
Gary Baggey. said...
My reply to Harry it is hard to save anything when you make about $ 200.00 aweek take home pay when if you do the math you need about atleast $ 600.00 take home pay.Companies should pay the worker a living wage and thier profits come after the workers get good pay and no CEO is worth the money they make. Gary Baggey
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12-11-2010 @ 8:58PM
Gary Baggey. said...
It is shameful the way that Canadian companies or should I say the rich people treat the poor people in Canada and around the world.Home onwership and buying food for your family is a human right.If these Rich Foolish Companies would quit spending money on show for thier companies and quit advertising on T.V. every 15 minutes of the day and start paying your workers what they are worth you would have sales that you would not believe. Your worker is not just your slave your workers are your costumers.Gary Baggey.
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12-11-2010 @ 9:51PM
bernard said...
well like harry says here i dont care how mucht the rich make fine but people that work in canada should all be able to get a decent place to live either bought or rented regardless of wages the homeless shelters only needed by people without work it is not acceptable when working people cannot afford decent housing or have to be homeless it is up to this country to provide enough subsidized housing for all workers because workers earning minimum wage are subzidizing the entire country
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12-11-2010 @ 10:51PM
D.Anderson said...
All I got to say is, as long as the so call RICH pay there equal share of taxes based on what there income tax rate specifies thats great and you should not concern yourself with what others make or have
.
Why do so many waste time and energy worring about what other have or make?
As far as Taxes go, think before you make yourself look like an IDIOT, ask yourself do you enjoy the services that are provided by the government at the expense of your taxes. Things like public school system, Health care and hospital's, police and fire services, highway maintenance and repair. There are a number of other important services that we enjoy and take for graned each and everyday that are provided by the government but suported by the tax moneys collected from all.
No government has been or ever will make everyone happy, There are always those that want a free ride at the governments expense or on the back's of the rich. Those are usually the lazy unproductive members of our Free society where we all have equal oportunity to succeed and prosper.
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12-12-2010 @ 9:12AM
Gary Baggey. said...
I care what the rich people make and I am not asking them to let me get rich on thier backs.Do you realize that some CEOs make just as much in first 15 minutes of the new year as the workers under this person.makes for the whole yearThe Canadian CEOs average wage in Canada now 10 million a year and the average Canadian worker
working for the cheapos are lucky to make $20.000.00 ayear.Back in the 1980s I made $18.00 an hour and with prices atleast double since I am making $11.00 an hour now at Walmart. Are we Candians that dumb that we think this right.We work for those rich companies and with our Slavery they are getting richer.Gary Baggey.
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12-29-2010 @ 12:32AM
JB said...
Hey gary sounds like you missed the boat since the eighties. One of the first rules in Job hunting never leave you previous jobs for less then what you made.( Yes I understand lay offs too!) Had you have looked for a decent job every time you left another job or better yet get a better education. In the form of upgradeing you wouldnt be in the boat you are in right now. Now look at what your doing, your blaming everyone else but yourself for where you are. Did anyone make the decision to settled for a lower paying job that you have, no only you are in control of your future. Live with your decisions and move on stop blaming everyone but yourself for your sad pathetic life. Get off your butt and start getting what you think your worth, dont expect someone who is trying to make money to give you something without asking. I dont mean to be harsh wait yes I do. Your the one who settled not the rich they never settle. Your money metre says you will only earn what you need to survive whereas the rich peoples money metre say there is no end to what they can earn. Think about it and then say I'm wrong. only you can control your needs nobody else can.
Sometimes we all need a reality check. When someone gets in your way walk around them. Don't make enough make more.
Life gets what you give, not the other way around.
Money does buy happiness because no money gives you saddness and stress.
12-12-2010 @ 1:33PM
Wally H said...
This reply is to Harry who has missed the stock market performance , therefore mutual fund return over the last 20 years , you remind me
of a ING commercial ( Save your Money)...ha ha.....Most investments in the markets will make you a Millionare in a very short time , but only if you have a billion to invest .....for all you who invest be very careful who handles your life savings , if you don't trust them more than mom , stay away , if they evade your questions, stay away , if they try to hide or not discuss MER's or DSC's avoid like the plague, if there is any possible way to manage your savings yourself, do it... or you could maybe just enjoy life , spend your hard earned money on yourself and family or charity if so inclined, I have learned the hard way , but it has been a long winding road of lies and deceit...buy and hold, bull, if you miss 10 best days in market ,bull , here look at this chart , bull , ...dollar averaging , bull ....compound interest maybe, if they would only pay a little interest you could grow your savings ....but low interest is there to suck you in to equities
and burn you again....The investment industry will take your savings and show you how to make it thier money,,,be very
very carful, Wally H
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12-12-2010 @ 7:34PM
Gary Baggey. said...
I think it should be agaisnt the law in any country for any Gov. official to be shareholders . I believe our corupt Gov. is in bed with the companies.I have had a couple of takes to my MPP and he told me that the poor company owner has wages to pay and some even have to pay pensions.I think we need a Gov. that is also funded by the general public only.I do not trust any Gov. that is getting company funding.Please Steven,Iggy. Jack,
Elizebeth.here is our money turn your back on the workers.
The rich are awfull.Gary Baggey.
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12-12-2010 @ 9:37PM
Douglas Stevens said...
Actually, it is gratifying to see the vast majority of these comments support the idea that hard work, etc resulting in success is a good thing. Many people that I come into contact with (including some frriends) seem to think that success is a disease to be avoided at all costs. I hope we can all see that relying on the government to help redistribute the wealth is a terrible idea. The tax code should be revised to simplify and ultimately reduce the tax rate and we will all benefit from the resulting boost to the economy.
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12-29-2010 @ 1:01PM
Gary Baggey. said...
Dear J.B.I understand that you are telling me that I am a lazy complainer.Do you believe that it is right what Canadian companies are doing to workers.Christmas Eve. 2009 four workers plunged to thier deaths because of a employer that did not suppy safety equipment and the rich companies today pay dirt cheap wages while they buy out companies.Look at the Nortell workers and US. steel in Hamilton Sudbury nickle mines.
I thought that slavery was obolished over two hundred years ago.
Do you think it is fair that a Bay street banker that makes 50. million a year plus he gets big bonnuess and the workers under him have to go to food banks for thier food. I worked at a Walmart and some of thier workers were homeless. Are you a corperate bum kisser or do you believe in human rights.Gary Baggey.
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