There was always skepticism about claims that, as the rich became richer, income would "trickle down" to others. What wasn't perhaps foreseen was that the trickling would actually be in the other direction, and that it would be more of a torrent than a trickle.
But the evidence is now clear. Over the last three decades, the tables of the rich have overflowed, with barely any scraps falling off. On the contrary, there's been a massive transfer of income and wealth from Canada's middle and lower class to the rich.
The result is that Canada has become a highly unequal society.
Related rabble.ca story:
Call it Unequal Canada -- the national tour. British professor and epidemiologist Richard Wilkinson has packed his first visit to Canada with public meetings, and private sessions with senior government officials and community leaders. His message is powerful, yet simple: Greater equality is better for everyone.
"It's not just the poor, but everyone is worse off in unequal societies," said Canadian statesman Ed Broadbent as he introduced Wilkinson for his sold-out Toronto presentation on Dec. 10. "More equality, not more growth, matters."
Almost 40 years ago, Ottawa quietly cancelled Canada's estate tax.
Few Canadians even knew about the tax. Those who did mostly belonged to a small number of wealthy families who were rich enough to pay it. With its cancellation in 1972, this tiny crowd was suddenly a lot richer.
U of T economist John Bossons calculated that ending the tax amounted to a windfall of about $12 billion ($62 billion in today's dollars) for Canada's wealthiest families.
The removal of the estate tax, which remains an obscure event in Canadian history, had momentous implications, depriving Ottawa of revenue and putting Canada on a path toward greater inequality.
Since the early 1980s, Canadian economic policy has consisted of introducing market-friendly policies. The stated goal was to increase productivity, defined as output per person-hour worked. Reliance on markets has not produced the expected results.
Speaking to the Ottawa Economics Association this spring, Bank of Canada Governor Mark Carney put a pointed question to Canadian business leaders. Given all the measures put in place by successive governments to promote productivity, why is business failing to invest?
Percentage pay gap between men and women in Ontario in 2011, the most recent year of data available, based on average annual earnings. That's up from a 28 per cent gender pay gap in 2010.
How much Ontario working women made in 2011 for every man's dollar. That's down from 72 cents in 2010.
Increase in Ontario men's average annual earnings between 2010 and 2011. They earned an average of $49,000 in 2011.
Decrease in Ontario women's average annual earnings between 2010 and 2011. They earned an average of $33,600 in 2011.