Income Gap Growing
In 2009, people in the highest quintile had 24.6 times as much market income as those in the lowest quintile, but after taxes and transfers the people in the highest quintile had 9.1 times as much income as those in the lowest quintile.
In 1989, the people in the highest quintile had 7.2 times more income after taxes and transfers than those in the lowest quintile.
In 1990, 82.9 percent of the unemployed received unemployment benefits. In 2009, 47.8 percent of the unemployed received unemployment benefits.
Source: Conference Board of Canada, July 13, 2011
11. Explain what the information provided in the news clip implies about the effects of income redistribution policies on the income gap between the richest and poorest Canadians.
12. How have changes in employment insurance changed the income gap between the richest and the poorest Canadians?
Income redistribution policies have drastically reduced the income gap between richest quintile and poorest quintile from 24.6 times to 9.1 times after cash transfers in 2009 to lowest quintile which presumably made them better off.
However on the contrary, the unemployment benefits reduced from 82 to 47 percent from 1989 to 2009 which also contributed to higher income amongst richest as well and poorest and thus averaging out causing the gap to remain albeit smaller.
Income Gap Growing In 2009, people in the highest quintile had 24.6 times as much market...
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