Categorized | Editorial

Canada’s Middle Class In Bad Shape, Internal Government Report Reveals

Posted on 27 February 2014 by admin

Canada’s troubled middle class is holding back economic recovery because families are so cash-strapped, suggest federal bureaucrats who cite the work of a maverick American economist.

An internal government analysis approvingly cites the work of Joseph Stiglitz, a Nobel Prize-winning economist who argues that “inequality is holding back the economic recovery.”

“The hollowing out of the middle class means that they are unable to invest in their future, by educating themselves and their children by starting or improving businesses,” it adds, citing another of Stiglitz’s arguments, referring to the U.S economy.

And a middle class with weak income does not deliver the taxes governments need to improve infrastructure, education, health and research, another borrowing from Stiglitz.

The document, obtained by The Canadian Press under the Access to Information Act, was produced by a little-known unit within Employment and Social Development Canada, which runs Canada’s income-support programs such as EI.

The bleak message is in sharp contrast to the Conservative government’s talking points, that a million jobs have been created since the recession, that “average” families have been given 160 different tax breaks since 2006 and that incomes are in fact rising.

The government has repeatedly emphasized its tax cuts for average families, amounting to $3,400 a year — including GST cuts — for a two-working-parents family with two kids, bringing in $120,000 a year.

That was a message repeated in the House of Commons on Monday, as opposition parties each claimed to be the standard-bearer for the middle class.

Kevin Sorenson, minister of state for finance  said in the House of Commons that “the greatest threat to the middle-class would be the piling on of more taxes and taking more from their pockets.”

“The middle-class has been very well-served by this government. Over one million new jobs have been created since the deepest part of the recession.”

Leave a Reply

Advertise Here
Advertise Here