Over the past few years, I have noticed that the topic of income inequality has gained increasing presence in my country’s media and political discourse. As an average joe, this is one of those issues where opinions appear to never change. Some believe that income inequality is a severe problem that threatens the middle class and that action should be taken, and others believe that its best to leave markets be. As I cannot think of a single example where polarization is a desirable attribute in any facet of society, I doubt family incomes would be the exception case. The question I have is: what is the trend and severity of income inequality in Canada?
Before I start digging through the data, some food for thought: Do you think that the middle class represents a stable equilibrium? In other words, does a free-market society naturally trend towards the formation of a middle class? Or is it an unstable fixed point where current members of middle class and their families tend to diverge to either upper or lower classes? I don’t really have any strong views on this, but I may post more on this subtopic down the road.