The Growing Income Gap: Education as a Factor

As a democratic nation, Canada has found pride in principles of acceptance and equality for all. The notion of equality, though, has predominately been applied to cases of political rights and freedoms. Only recently has there been recognition of the term as it applies to wealth and living standards. One study shows that in 2004 the richest 10% of Canadians had after-tax incomes that were 82 times higher than that of the poorest 10%. Until this growing gap is dealt with, equality in Canada will remain a distant vision.

The growing gap is an issue that all Canadians should feel concerned about, no matter where they are on the wealth spectrum. Programs such as income support and social structures are necessary to aid those at the bottom of the gap whose health and well-being is impacted by inequality and, as a result, monetary costs to society increase and taxes are raised. In addition, the overall welfare of society is threatened and notions of justice and equality are forgotten.

A report published this month by the Organisation for Economic Cooperation and Development (OECD) observes that the rich have profited from economic development in the last few decades much more than the poor. This is reflected in Statistics Canada reports showing top earners receiving more in 2006 than they did in 1980 while those at the bottom of the income distribution are earning less in real dollars. Such unequal income results in an unbalanced society where the wealthy can have considerable sway on politics and public views. The poor, on the other hand, are impacted by government and social aid programs but have little influence.

Currently, many Canadians do not feel secure in their jobs or in their financial situations, and 39% believe that poverty is as near as one or two missed pay cheques. There are several factors that are known to contribute to this insecurity and to the growing gap. One reason is that many people face unemployment or precarious employment due to a lack of education and skills-based training. Education has had a particularly large bearing on the growing gap.
In the last few decades, the labour force in Canada has shifted focus and it has become very important for people to possess specialized expertise and education in order to find jobs with sufficient salaries or wages. We now live in a society that is focused on knowledge, and those fortunate enough to attend post-secondary institutions have considerably better chances at obtaining advantageous jobs – particularly in areas such as finance, health, and law.

A report from Statistics Canada has shown that most people with high incomes are also well-educated. In fact, 65.3% of individuals with incomes of $150,000 have obtained university education. So why don’t more people pursue further education and training if there is such a significant gap between the earnings of those who attend post-secondary and those with high-school education or less?

 One reason is that some people are ill-equipped for further learning due to a lack of early childhood education. Studies have proven that quality early learning enhances a child’s ability to learn at later periods in life, leading to success in school, higher chances of graduating, and further educational investments such as post-secondary learning. Yet early childhood education is expensive and those at the bottom of the income gap cannot always afford for their children to take part in programs that will equip them for later learning.

Another reason that people don’t pursue further education involves the monetary costs of post-secondary schooling. As the demand for education has risen, the price of obtaining that education has also risen. High tuition costs have been a large obstacle for many Canadians who wish to attend college or university. While student loans are accessible to many people, they create debt problems that are difficult to overcome after finishing school. So what is the solution?

A large majority of Canadians (86%) recognize that government must work towards reducing the growing gap and an even larger majority (90%) shares the opinion that one efficient method for doing so is to make higher education more affordable. Provincial governments should work to decrease tuition costs so individuals have a lesser chance of going into debt by attending post-secondary institutions. In addition, both federal and provincial governments should increase the number and amounts of grants provided to students.

 Last Wednesday, thousands of students demonstrated across Ontario as part of the Canadian Federation of Students’ Day of Action, including a large rally on Parliament Hill. The students called for lower tuition and better government funding in support of higher education.

 Every person in society should have access to the benefits of education and training. Those without the financial resources to attend post-secondary institutions need additional assistance. It is the role of a democratic government to reallocate wealth to those in need in order to promote an equal community where individuals are able to sustain healthy livelihoods. In a just society, people should have the means and resources to support themselves and tend to their own welfare. This upholds the dignity that we are granted as image-bearers of God, and it gives individuals an awareness of their worth.

As Christian citizens, we need to take advantage of our democratic rights and work to influence our government to address the issue of the growing gap. Government and societal efforts to equalize access to education will benefit all Canadians and will promote justice and equality in our nation.