Understanding Income and Wealth Inequality in Canadian Households
School
St Robert Catholic High School**We aren't endorsed by this school
Course
ENG 4U
Subject
Economics
Date
Dec 10, 2024
Pages
4
Uploaded by AdmiralMosquito2290
Annotated BibliographyStatistics Canada. (2024, October 10).Distributions of Household Economic Accounts forIncome, Consumption, Saving and Wealth of Canadian Households.https://www150.statcan.gc.ca/n1/daily-quotidien/241010/dq241010a-eng.htmThis report provides a detailed report on the distribution of income, consumption,savings and wealth of Canadian households in 2024. It shows the differences among thedistribution of wealth across Canada, highlighting how the top 20% of householdspossess over two-thirds of the country’s net worth, whereas the bottom 40% hold lessthan 3%. The report also examines the trends in household savings and debt levels,offering insight into the financial health of various demographic groups. By presentingclear and comprehensive data, this report offers insight into the structural economicchallenges faced by many Canadians.This source is extremely valuable as it provides an authoritative and comprehensivereport on the income and wealth inequality trends in Canada. It complements statisticaldata that offers a strong foundation for understanding the extent of financial inequality,which is important to analyze the wider issues that these trends and financial challengesbring to bear upon Canadians. As an official government publication, this source isextremely credible and free from bias.This source will be highly useful in my essay as it provides detailed, credible data thatsupports my arguments about the economic disparities in Canada. These insights onhow wealth and income inequality will allow me to frame systemic financial challengesimpact Canadians’ abilities to achieve financial stability, which reinforces the conceptof a “me-cession.” It has also given me a broader understanding of how economic
trends–such as wealth concentration and debt growth–affect the financial well being oflow and middle-income households, which contributes to the broader economic contextin my analysis.Ivanova & Hemingway, F. M. (2024, February).Affordability crisis will persist until we get ahandle on runaway housing costs. BC Solutions.https://policyalternatives.ca/sites/default/files/uploads/publications/BC%20Office/2024/02/CCPA-BC-Solutions-Feb-2024-web.pdfThis report examines the escalating living costs in Canada, with a focus on theincreasing housing costs. It talks about how housing and rent fees are outpacing thegrowth of wages, causing increased financial strain on Canadian households. The reportalso presents the impacts of these trends on living wages, highlighting how the livingwage in Metro Vancouver has risen to $27.05 per hour, a 5.3% increase from last year,and it emphasizes the need for policy interventions to address housing affordability aswell as mitigate the broader affordability crisis.This source is extremely helpful because it provides a focused analysis on housingaffordability, a large component of the broader economic challenges that Canadians arefacing today. The source complements other sources too by providing specific insightson how housing costs exacerbates the overall financial strain. The report is publishedby the Canadian Centre for Policy Alternative, a reputable research organization whichgives much credibility to its findings. While this organization has a progressiveperspective and a unique approach to the situation, its findings and data arewell-presented, well-supported and aligns with findings from other reputable sources.
This report will assist in presenting the physical impacts that the affordability crisis willhave on Canadians households, particularly concerning housing costs. It providesconcrete data that will support arguments about the necessity of policy reforms toaddress housing affordability. The source has deepened my understanding on thespecific factors contributing to the “me-cession,” especially how housing costs haveexacerbated financial challenges for Canadians.Hartley, F. M. (2024, November).Mortgage stress tests and household financial resilienceunder monetary policy tightening. Bank of Canada.https://www.bankofcanada.ca/2024/11/staff-analytical-note-2024-25/This analytical article examines the effectiveness of mortgage stress tests in improvingfinancial stability among Canadian households during monetary policy tightening. Ithighlights how these tests have improved the credit quality of mortgage borrowers, inturn, slowing house price increases and moderating credit expansion. The study alsorevealed that households subject to mortgage stress tests have demonstrated higherfinancial resilience in the face of significant interest rate increases, such as thoseexperienced by many Canadians in the years of 2022-2023.This source is immensely beneficial as it provides an in-depth analysis of a specificpolicy–mortgage stress tests–and their role in maintaining financial stability. It supportsother sources by focusing on the regulatory aspects that influence household financialresilience. As an official publication from the Bank of Canada, this source is credibleand free from commercial bias. The article is data-oriented and objective, offering anuanced perspective on the effectiveness of mortgage stress testing.
This analytical note will be instrumental in discussing the policies that have beenimplemented to safeguard household financial stability from economic challenges. Itshows evidence of the effectiveness of mortgage stress tests, which in turn can be usedto argue for the importance of such policies in mitigating financial crises. This sourcehas deepened my perspective on how policy measures strengthen the resilience ofCanadian households. It provides insights on the roles that government actions playduring economic challenges.