Income Inequality is a Policy Choice
The capitalistic hellscape
The vast majority of us are feeling it— the tightening of budgets, many of us living paycheque to paycheque. And we keep hearing the same bullshit rhetoric about how we need to work harder to achieve upper-class wealth.
These claims stem from the myth that's been fed to us that we live in a meritocracy: a society where "hard work always pays off" because merit and abilities are "awarded." We hear this rhetoric so often (from the government, in our schools, our immigrant parents, from our bosses) that many of us start to internalize it. But this, dear reader, is capitalist propaganda.
The meritocracy myth is propaganda designed to keep us believing we can achieve upward mobility, while the elites ensure we never have access to it by creating systemic barriers, worsening inequalities and hoarding wealth.
Myth of Meritocracy
Scream it with us: Not everyone in Canada has equal opportunities to make that money, honey.
For most people, where you are born on the economic ladder determines where you end up: the occupation & marital status/living arrangements of your parents, your neighbourhood/ city, immigration status if your household speaks English or French and if your parents have attended post-secondary education, are often the strongest predictors of your wealth. You'll note that "pulling yourself up by your bootstraps" isn't actually on this list.
Children from single-parent households are ≈3x as likely to live in low-income circumstances compared to children from two-parent households.
One in two children from recently immigrated families live in poverty.
Income Inequality & Intersectionality
And because our systems are built on white supremacy via colonialism, poverty and income inequality is designed to disproportionality affect marginalized groups. Systemic oppression and barriers increasingly push marginalized communities towards low-earning and precarious work.
1 in 5 racialized families live in poverty in comparison to 1 in 20 non-racialized families.
≈15% of people with disabilities in Canada live in poverty— 60% of whom are women.
And let's remember, marginalized groups, aren't marginalized because of something they did. They're marginalized because the system, our country and governments, continue to systemically neglect them.
Income Inequality & Indigenous People and Communities
As a result of colonialism – which is a gross combination of racism, land theft, multi-generational trauma of residential schools, and systemic neglect resulting in economic and social marginalization – Indigenous people are disproportionately affected by income inequality.
On average, Indigenous people are paid 70 cents on the dollar compared to non-Indigenous people.
1 in 4 Indigenous people live in poverty.
Over half of Indigenous people living on reserve experience food insecurity.
Disturbingly, these inequalities have persisted over time - because of the consistent agenda of colonization by the Canadian government and the lack of real action on reconciliation and the TRC's 94 calls to action.
Feminization of Poverty
Gender-diverse folks and women are more likely to experience poverty because of a number of deep-rooted and systemic barriers and forms of discrimination, including the gender wage gap, overrepresentation in low-paying and precarious work, and the likelihood of taking on unpaid labour at home, including the care of family members. Not to mention jobs that are historically filled by women - nursing, teaching, care economy - are systemically fucked over (*cough* Bill 124 in Ontario) in ways jobs that are historically held by men - policing, doctors - are not.
In Canada, racialized women earn 59 cents for every dollar non-racialized men earn.
≈20% of low-income women are mothers heading lone-parent families.
Women still don't make as much as men for the same damn jobs, which is wild considering the jobs women often hold include the unpaid addition of emotional labour that emotionally stunted men refuse to acknowledge they need.
Income Inequality in Canada is a Policy Choice
The people who are ultra-rich aren't ultra-rich because they worked harder. They are ultra-rich because they had every opportunity for success.
Imagine society was playing a game monopoly, but there wasn't an official rulebook:
The ultra-rich start with assets - properties, extra inherited money, an understanding of the rules (because they and theirs wrote them) and how to game them, and a get-out-of-jail card.
Meanwhile the average white person starts the game at GO, and with a deep knowledge of the rules of the game—because their parents passed on that information and the rules were designed for them in mind. They also know the banker.
Marginalized communities starts the game with the banker giving them less than they are supposed to. They don't fully understand the rules - they aren't really written anywhere - and even if it was explained, it's clear that the rules are not designed for them in mind.
Income Inequality in Canada is a Policy Choice - and we're failing
Policy and regulation can and should play a major role in combatting income inequality – taxing the ultra-rich (instead of creating loopholes for them to exploit), a livable minimum wage, and comprehensive social assistance are just three ways the government could choose to reduce income inequality.
EI, rent subsidies, and child care are all programs that can help lift people out of poverty - but these programs not only require funding BUT also have to be aligned with the costs of living. For example, in BC, over 3/4 of households receiving income support were considered to be food insecure pre-pandemic - which tells us that current income supports are not high enough.
In Canada, our social welfare policies (like EI) actually do not lower inequality as much compared to most other OECD countries! We've acknowledged that having these in place is important but fail to make sure they actually work, and it's essentially performative if it doesn't actually work.
Questions to Consider
Canada has that colonial settler stolen wealth, resources, lives and land - we're "old-money" rich, so how come the basic needs of the people in this country are not being met?
If education is one of the only ways to ensure upward mobility, why isn't education free for everyone?
Capitalism needs exploitation to work - whether it's enslavement, migrant workers making less than minimum wage, people not making a livable wage, gig work, or exploitation of international labour laws to evade the labour rights and worker protections in countries in the West. What changes need to be put in place to end this exploitation and hoarding of wealth?
What level of government should be responsible for ending poverty? Federal government? Provincial? Municipal?
What responsibilities do private companies and organizations have to address and prioritize poverty?
What would a society without poverty look like?
