Four professors involved in researching income inequality in Canada took a close look at the National Household Survey and what it appeared to tell us, and then put it into context.
According to the NHS, many of the census tracts where low-income people live have seen their average incomes rise, while the highest-income census tracts in the country have lower average incomes. If true, this means we are now a more equal society with a much larger middle-income group. The rich are not so rich; the poor are not so poor.
But when the data was compared to income data from the Canada Revenue Agency where, as the authors point out, supplying accurate information is still mandatory, the NHS results don't stand up.
In short, all the good news from the NHS is nonsense.
The sad thing is that the news is now "official." It comes from official government of Canada statistics. It will, no doubt, be used in partisan ways. It will be used to confuse the debate about the growing gap between rich and poor. It will be used to make it appear that Canada is becoming more equal, when the opposite is happening.
And so they arrive at the inevitable conclusion:
The income data in the National Household Survey is not valid. It should not be used or cited. It should be withdrawn.
If it's more difficult to demonstrate the reality of growing income inequality because the evidence is suspect or contradictory, it's more difficult to make the case for doing something about it.




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