HOME

NEWS

YOUR TORONTO

OPINION

SPORTS

BUSINESS

EconomyPersonal FinanceTech NewsReal Estate

ENTERTAINMENT

LIFE

AUTOS

PHOTOS

DIVERSIONS

CLASSIFIEDS

OBITUARIES

Inside the Star

Kyle Sinclair was‘protector’ of hisfamily, his mom says

Meet the FergusonRage Whisperer

Stephen Lewis roarsin takedown of Harpergovernment: TimHarper

Business

Canada’s richest 86 people have as much wealthas the poorest 11.4 millionIn 1999, the 86 wealthiest Canadians had a net worth of nearly $120 billion —equivalent to the bottom 10.1 million Canadians — but that increased to nearly $180million in 2012.

Share

Options

Font Size

SmallerNormalLarger

Viewer Comments

on

Sounds

Flick

Translate posts and comments.

ScribbleLive is powering generation now with its live CMS. Learnmore

OptionsInfo

Share

Monday, November 24, 201411:48 AM EST

172kLike BUSINESSSearch The Star

Search the archives

Sign In

Canada's wealthiest four families

Top News

Ontario bans flavoured tobacco, cracks downon e-cigarettes

Updated The dark side of this sunny Caribbeanisland

Updated Chuck Hagel resigning as U.S.defence secretary: report

Dangerous employers getting million-dollarpayouts

The Bay takes out $1.25B mortgage on SaksFifth Avenue

One in five Ontario children faces life inpoverty

Two more NDP staffers file lawsuits

Stephen Lewis roars in takedown of Harpergovernment: Tim Harper

Keep it Canadian this holiday season

The Kit: 4 Sport-Inspired FashionCollaborations We

You can’t protect kids,but you can let…

PARTNER CONTENT

The YMCAAcademy: Engaging

Toronto.com: What’sOn This Week

Tweet 240 21 + save to mystar

NORM BETTS / BLOOMBERG NEWS/ 2002 FILE PHOTO

The Thomson family, David, left, and Kenneth has long topped annual lists of Canada’s mostwealthy people.

By: Jane Gerster Staff Reporter, Published on Thu Apr 03 2014

Canada’s richest 86 people are as wealthy as its poorest 11.4 million, according to a newreport.

Not only do the 86 — who make up just 0.0002 per cent of the entire population —control a third of the country’s wealth, says the report from the Canadian Centre forPolicy Alternatives, but they have enough money to purchase all of New Brunswick —with billions to spare.

“All the cars, all the houses, all the land, all the stocks, all the bonds . . . everything,” saidDavid Macdonald, the centre’s senior economist and author of the report. “Literally,everything.”

Much has been made of income inequality, with the richest 20 per cent taking homealmost 50 per cent of income, Macdonald said, but wealth inequality is worse. Almosttwo-thirds of Canadian wealth is controlled by richest top 20 per cent.

The gap has only increased over the last 13 years, Macdonald found by analyzing datafrom Statistics Canada and Canadian Business magazine.

In 1999, the wealthiest 86 had a net worth of just under $120 billion, (equivalent to thebottom 10.1 million Canadians), but that has increased to just under $180 billion in2012.

Also since 1999, 66 cents of every new dollar of real wealth has gone to the wealthiest 20per cent, 23 cents has gone to the upper-middle class, with only a dime left for thebottom 60 per cent.

In many ways, the growing divide is more concerning than income inequality, said ErinWeir, economist for the United Steelworkers.

“Wealth matters because it also confers political power and social status,” Weir said,adding “wealth makes increasing inequality a self-reinforcing trend: invested wealth is asource of income, those who already have the most wealth have the greatest capacity toaccumulate more wealth.”

Indeed, the report found that even the wealthiest CEOs couldn’t earn their way into thewealthy 86.

Of Canada’s top 100 highest paid CEOs, only 10 were in the 86 and all 10 were related tothe founder of the company.

“You just cannot save up enough money to get into the wealthy 86,” Macdonald said.“They are in a different league.”

The financial insecurity of the lower and middle classes could also slow the economy, hesaid.

Video

After a year of Sportonomics, ourElite Eight Episodes

Canadian housing market not at major risk:CMHC

The Ghosts of Bhopal, 30 years after disaster

Comics

Stephen Lewis roars once more in takedownof Stephen Harper government: Tim Harper

The dark side of this sunny Caribbean island

One Direction wins artist of the year atAmerican Music Awards

After a year of Sportonomics, our Elite Eight Episodes on.thestar.com/1yMNgwD

TorontoStar Business @StarBusiness

Canadian housing market not at major risk: CMHC on.thestar.com/1vFPShK

TorontoStar Business @StarBusiness

A question they may be asking in Buffalo: buff.ly/1vF0hLq

Adam Mayers @TorontoStar_PF

2m

2m

4m

BusinessTweets from a list by TorontoStar

Special Coverage

Careers

Workopolis

Most Popular

On Twitter

Inspired by world's greatboulevards

Middle-aged? Good. Nowyou can relax

“The poorest Canadians, they just don’t have any assets to speak of, or they have moredebt than they have assets . . . which means they’re not going to be big spenders in theeconomy, they’re going to be much more conservative,” Macdonald said.

And while wealthy people are still buying, Weir said, “I don’t think that makes up for thefact that middle-class households are shouldering record-high debt levels and thereforehave their spending limited.”

Narrowing the gap, both suggested, would require increasing income taxes for higherearners and increasing the inclusion rate on capital gains, which are currently taxed athalf the rate of normal income.

It’s “the only public policy solution,” Macdonald said. “It’s through the sale of assetsthese wealthy 86 manage to build up the level of wealth and it’s only through changingthe capital gains that you would actually have an impact.”

More on thestar.com

From around the web

Recommended by

After a year ofSportonomics, ourElite...

Canadian housingmarket not at major risk:CMHC

303 Comments

We value respectful and thoughtful discussion. Readers are encouraged to flag comments that fail to meetthe standards outlined in our Community Code of Conduct. For further information, including our legalguidelines, please see our full website Terms and Conditions.

Commenting is now closed.

Login

powered by:

Write your comment here

Submit

Newest

jivebunny09We are comparing apples to oranges here. The new wealthiest have become wealthy because of hard

work and in most cases just luck with old money. I can't see why there could not be more than 86

wealthy and why there are so many poor in our Canadian economy. I have worked for over 45 years

and I have nothing to show for it. But, I did work for The Thomson Gallery from 1989-1997 when Ken

Thomson (1923-2006)owned the Hudson Bay Company. This was the best job I could ever have

because I am an Artist... » more

7 months ago 0 Likes

colin.patterson.58726Sadly, the Progressives offer no realistic policy alternatives, just more of the manifesto, writ large with

witless analogies and the usual handwringing.

My generation (boomers) and the previous one, have elected cretins for 50 years, based on the

populist mantra that we can have our cake, and eat it, too. I cite the present occupants of Queen's

Park as examples. We are inflicting a monstrous burden on succeeding generations, in the form of

debt burdens to support our sunset years, that we... » more

7 months ago 0 Likes

2.40% on 1 Year GICsoaken.com/Rates

You'll love the 0.25% we've added to all our GIC rates, until Dec 19.

Disabled?thenba.ca/1.888.389.0080

Get Up to a $40K Disability Tax Credit - Learn If You Quality

Life Insurance up to 85canada-life-insurance.org/No-Exam

Free Life Insurance Quotes for Canadian Seniors. No Obligations!

Used Gas DieseLDump Truckparamounttrucks.com

F450,F550,F650,F750,Diesel Dumps 1-7 years Old, Buy or Lease toOwn

20 Year Old CaseFinding its Way intoCanadian CourtsFinancial Post

Highest PayingUniversity Degrees inCanadaMonster

11 Cheap Cars thatMake You Look Rich

How he learned 9languages fluentlyBabbel