Using the ratio of the top 20% to bottom 20% average incomes showed that in 2007 income disparities were lower in Prince Edward Island and higher in British Columbia. In effect, in Prince Edward Island, families in the top 20% had an income 6.2 times higher than those in the bottom 20%. Similarly in British Columbia, families in the top 20% earned 10.1 times more than families in the botton 20%.
Among the provinces, BC had the worst income gap between the rich and the poor.
CANADA CURRENTLY FACES A RECESSION — possibly a long one. But over the last 10 years, we’ve had one of the strongest economies of all developed nations. Inflation, unemployment and interest rates have been low, and GDP growth strong. BC is one of the wealthiest provinces in Canada and has just come out of an unprecedented economic boom. Accepted wisdom has been that our province is in a strong position to weather the recession. Unfortunately, many people are not nearly as prepared as we’d like. This CCPA study tracks earnings and after-tax income for BC families with children to examine how their financial situations have changed over the past 30 years — about a generation. Our findings reveal that the vast majority of BC families are already in a vulnerable position as we head into a major economic downturn.