Canada becomes more unequal, but good policies could halt that: TD Bank

When the banks start worrying about rising inequality ….

But author [TD Economist] Craig Alexander says rising inequality is bad for the economy – both because it leaves lower income people with less to spend and because it stalls opportunity for children and youth.

“Inequality has risen and it is a concern, because it actually can hamper investment in human skills, it can hamper economic growth. There’s an increasing body of literature that shows that elevated levels of inequality is not just bad for individuals, it’s bad for your economy and your society,” he said in an interview with CBC’s Metro Morning.

He calls for smart policies that improve Canadian productivity and social mobility, among them:

1. Investing in policies that improve productivity.

2. Investment in skills training.

3. Reviewing the tax and income distribution systems.

4. More means testing on programs to shift support to families more in need.

5. Improving policies around education, early childhood education and health.

Canada becomes more unequal, but good policies could halt that: TD Bank – Business – CBC News.