Rich-poor gap could spark financial crisis in Canada: Report
First posted: Tuesday, May 22, 2012 11:58 AM EDT | Updated: Tuesday, May 22, 2012 12:17 PM EDT
The gap between the rich and the poor in Canada is getting wider and could eventually lead to an economic collapse, according to a new report by a left-wing think-tank.
Income for middle-class Canadians has remained stagnate since the 1980s, while the income of the richest 1% has increased dramatically, according to Dalhousie economist Lars Osberg.
As a result, Canada's income inequality has reached a level not seen since the 1920s, says Canadian Centre for Policy Alternatives.
A few people accumulating huge savings while most people rack up debt is a recipe for disaster, the report argues.
"When those at the top keep amassing income, their growing savings have to go somewhere. For a while, lending to the mortgages of the middle class can prop up GDP growth, but middle class incomes have not been growing, so their consumption is maintained by ever-deepening debt," said Osberg in a press release..............http://www.torontosun.com/2012/05/22/ri ... ada-report