TD Bank Report Exposes Canada’s Economic Inequality

Alshaar Ansari
Alshaar Ansari News Politics
5 Min Read
Source: Pixabay

A very condemning reveal has been made by a recent TD Bank report showing the tremendous economic inequality deep rooted in Canada, thus painting a gloomy image of the country where privileged minority prosper and majority suffer from financial hardships. The report discloses shocking realities about the government’s failure to address the expanding wealth gap that allows capitalists to make more money than ever before while ordinary workers’ debts soar up and savings shrink.

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Source: Pixabay

Consider this: between 2015 and 2023, the wealthiest fifth households saw their house savings jump by an astounding $100000 to reach $230000. Conversely, poorest families experienced a devastating drop in their savings by about $30000 from -$72707 to -$102952 over the same period. This inequality is indicative of how indifferent the government is towards its citizens’ welfare as it caters for rich at the expense of poor people.

Comparatively, although net incomes only increased slightly by just $28000 for richest fifth group; disposable income rose above $200000 as opposed to only $38000 increase reported for lowest income bracket. Such difference indicates that government aids in accumulation of capital by wealthy persons at very fast rates at time leaving poor with small gains.

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The findings also indicate that real incomes have fallen since pre-pandemic levels among second and third quintile earners whose disposable income growth has lagged inflation rate since 2019. This depressing fact shows the government’s failure to implement policies aimed at protecting middle class family finances from rising costs hence making it vulnerable all through.

Currently, households in Canada have debt equaling almost two dollars for every dollar they spent in 2021 – making it G7 nations highest debt-to-income ratio nation which stood around 1.85. On this regard Italy is quite different because it only owes its residents 90% of their expenditures which proves that government has not done enough to address the nation’s debt crisis that is getting out of hand.

We shared a post in our YouTube channel community section and asked the people of Canada about if lowering tax rates will stimulate to economic growth or not, And the results were shocking. Almost everyone agreed with the statement that lowering tax rates will help the economy. You can also Join the conversation on our Scoop Canada YouTube Channel! Cast your vote and Share your thoughts here to make your voice heard!

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Source: Scoop Canada YouTube channel

The report warns that middle-income families burdened with high levels of indebtedness and stagnant real incomes will be compelled into making “more economic choices” which would, in turn, lead to a decline in consumer spending – one of the main drivers for economic growth. This gloomy prediction indicates how little regard the government has shown towards its citizens’ financial well-being that puts the country’s economic stability in danger.

The conclusion sent shivers down my spine when it suggested that Canada’s only hope toward economic resilience lies solely on richest household consumption since they account for 50% plus aggregate spending. Such a clear admission shows how government is involved on maintaining an unfair system that favors few rich people at the expense of many underprivileged Canadians.

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TD Bank report represents a severe indictment on governments over failure to deal with increase income differential between Canadian citizens, showing a worrying trend whereby policies are targeted at enriching those who are already wealthy rather than improving the lives of ordinary people. As long as there is gap between rich and poor, Canada will have uncertain future as evidenced by its economy today whose fate hangs upon whether or not it can break free from this cycle of privilege.

Last Updated on by Alshaar Ansari

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