3/27/2023 0 Comments Middle class incomeOne focuses on technological change, and in particular information and computer technology, which is replacing middle-skill manual and clerical jobs involving routine tasks such as assembly-line work and the organization, retrieval and manipulation of information (Acemoglu and Autor 2011). Rising income inequality can also hamper efficient economic outcomes if rules favouring private benefit get too out of line with the broader public benefit, and it can slow down economic growth if overall consumption, private sector investment and human capital development are affected negatively (Canadian Centre for Policy Alternatives 2007 Osberg 2006 Stiglitz 2012).Īn extensive US-based literature presents a number of plausible explanations for earnings polarization and widening income inequality. Income inequality can lead to political and legal inequality and the tilting of rules to favour the rich and powerful, thus potentially causing a shift from an “inclusive society” to an “extractive society” (Acemoglu and Robinson 2012 Pressman 2007 United States 2010). A declining middle class raises concerns about a broad range of long-run social, political and economic issues, including basic fairness questions about reduced economic and social upward mobility and equality of opportunity, and, as a consequence, a weakening of social cohesion and trust in economic and political institutions that might make it more difficult to govern and obtain political consensus. Public policy research has also focused on this issue (for example, at a 2014 conference at Queen’s University 2) and on the growing “middle-class angst” and feeling of economic insecurity it has generated. Much of the media attention has focused on the claim of a declining middle class and on the hollowing out of formerly middle-class jobs, resulting in the increased polarization of earnings in the North American labour market (Cross and Sheikh 2015 Friesen 2014 Reich 2014). 1 Clearly, income inequality is a key issue of our times, with concern about whether a new distributional paradigm has been at work since the late 1970s compared with the period between the end of the Second World War and the early 1970s. The past few years have seen a flurry of major news media series on “the wealth paradox” ( Globe and Mail), “the great divide” ( New York Times), “unequal Canada” ( Toronto Star) and “the third great wave” ( Economist). As part of this project, twenty-seven leading economists and experts in the field examine income inequality trends in Canada, the factors contributing to its marked increase since the early 1980s, and the role of policy in addressing the problem.ĭistributional concerns and issues of widening income inequality have caught the public attention since the advent of the Great Recession and the Occupy Movement in the United States, as well as in western Europe and elsewhere (Atkinson 2015 Noah 2012 Stiglitz 2015). It is the result of a two-year collaboration between the IRPP and the Canadian Labour Market and Skills Researcher Network (CLRSN). She is also an award recipient from the Society of Professional Journalists.This chapter was published in Income Inequality: The Canadian Story. Her role has included being a mentor at Oxford University and Stanford University for student entrepreneurs and a media judge on various panels. She has interviewed some of the biggest personalities within the sector including Ray Dalio, Rick Rieder, and Sam Bankman-Fried. Additionally, she is the host of Block Street, an on-camera Business Insider feature that interviews key players about the crossroads between traditional and digital markets. On occasion, she profiles individuals who have reached financial freedom through alternative methods. She also profiles highly successful fund managers and traders about their strategies. ![]() She covers stocks, bonds, commodities, crypto, and real estate. Laila is an Investing Correspondent for the Markets division in New York. ![]() Based on the data above, in the vast majority of states, median-income earners are bringing in enough to live a middle-class life, according to Zippia's data.
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