On growing gaps

StatsCan adds to the list of areas where there's a growing gap between Canada's rich and poor, as retirement savings have been just as stagnant as incomes for lower-income Canadians:

A Statistics Canada report says families at the top of the earnings scale contributed more toward their pensions between 1986 in 2003, while this wasn't the case for lower-income families.

The growing inequality in retirement contributions was seen in two-parent families, one-parent families and single individuals...

"This is something new in Canada," personal finance and tax planning expert Tim Cestnick told CTV Newsnet from Calgary.

"We're seeing a widening of the gap between the wealthy in Canada and the not so wealthy in Canada, while the size of the middle class really is shrinking."

The article notes that the average income ($25,000) and retirement contribution ($1,200) for Canadians in the bottom 20% by income were identical in 1986 and 2003 - compared to jumps in the range of 40% for the top quintile. Which should once again highlight just how little plausibility there is in the well-worn claim that "a rising tide lifts all boats" - both in terms of current income, and in retirement savings where the gap can only be exercerbated as time goes by.

Meanwhile, it wouldn't be the least bit surprising if the Cons would love to see StatsCan eliminate such inconvenient facts as a form of efficiency in order the justify even more regressive outcomes in the future. But regardless of whether StatsCan is prevented from pointing out reality in the years to come, there can be little doubt that Canada's working class looks to be all the worse off in retirement - and that no number of attempts to put a happy face on the economy can gloss over the growing inequality.