Saturday, May 04, 2013

Canada's and America's Inequality

The Canadian Centre for Policy Alternatives analysis of income inequality data shows the richest one percent of Canadians make $180,000 more today - adjusted for inflation - than they did in 1982.


The bottom 90 percent of Canadians saw income gains of only $1,700 over the same time period. In Vancouver, Toronto, and Montreal - Canada’s three largest cities - the bottom 90 percent actually make less today than they did in 1982.

Canadians living in these cities have seen drops in income of:

Vancouver = $4,300
Toronto = $1,900
Montreal = $224

The richest one percent of Canadians in these three cities cities saw pay increases of:
Vancouver = $189,000
Toronto = $297,000
Montreal = $162,000

The wealthiest 1% of Canadians made 15 times more than the average Canadian in 2010. In 1980 it was 9 times as much.

In the U.S. inequality is much the same. The Wall Street Journal reported the top .01 percent (14,000 American families) hold 22.2 percent of wealth, and the bottom 90 percent (133 million families), just 4 percent of the nation's wealth.

In 1980 the richest one percent of America took home 1 of every 15 income dollars. Now they take home 3 of every 15 income dollars.

Over the last 30 odd years the share going to the richest 0.01 per cent quadrupled, from one percent to almost five percent.

The median amount CEOs took home in 2012, including cash bonuses and stock and options awarded in previous years that vested or were cashed in, was $10.2 million.

Pay and total compensation numbers listed in USA Today’s report are incredible, here’s just four of the many:

Miles White, Abbott Labs, $19 million
David Pyott, Allergan, $19.4 million
Kenneth Chenault, American Express, $28 million
Randall Stephenson, AT&T, $21 million

J.C. Penney’s Ron Johnson ex-CEO, earned $53.3 million -- 1,795 times more than the average worker's $29,688 salary. He also presided over layoffs of 43,000 workers and a 25 percent drop in sales; he was fired from his job last month.
Yum Brands' CEO David Novak earned $20.4 million, 819 times more than the average worker at his company.
Walmart’s CEO Michael Duke earned $18.1 million in 2011, about 611 times more than the average worker (who makes $29,688).

Stephen McNamee and Robert Miller, authors of The Meritocracy Myth say:


20% of American households receive 50% of all available income

The lowest 20% of households receive less than 4%

The top 5% of households receive 22% of all available income

The richest 1% of households account for 30% of all available net worth

Economic inequality in the U.S. is the highest among all industrial countries

The conclusion is in both Canada and the U.S., are getting richer while everyone else is getting poorer.
FROM HERE

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