High levels of inequality jeopardize Canada’s ability to succeed

   Canada’s high level of inequality and poverty doesn’t just erode social cohesion, but also jeopardizes their ability to succeed in the knowledge-based economy. Last week, the Drummond Report correctly observed that, in the 21st century, “education and innovation will be the key for Ontarians to be prosperous.” However, it’s important to recognize that “education and innovation” isn’t just the product of classrooms and laboratories; they are nurtured through favorable social conditions that are incompatible with elevated levels of inequality and poverty. There is plenty of evidence that “human capital” — the knowledge and skills that make people innovative — is socially determined, but human capital isn’t just about intellectual ability. A person’s health is also an important factor, both in terms of educational outcomes and productivity. Therefore inequality and poverty are worrying from an innovation standpoint as well. Studies show that a person’s social relationships are negatively affected by inequality and poverty. Canada ranks 17th out of 20 peer countries in terms of income inequality. The overall poverty, is ranked 15th out of 20, and drops to 16th spot in terms of child poverty. It’s not just the gap between the richest and the poorest that’s widening, in fact, 60 percent of Canadians experienced a drop in their market incomes between 1976 and 2009. This is a result of massive changes in the global economy which is brought on by the internationalization of markets and advancements in technology. Instead of investing people, Canadian governments have given the tax breaks to businesses in the hopes of innovation, but as Prime Minister Stephen Harper acknowledged in Davos a few weeks ago, this strategy has given “less than optimal results”. It is clear that, a major shift in thinking is needed. Investments in these areas won’t pay off unless underlying issues like inequality and poverty are addressed. Innovation comes from people, not institutions. Public funds are better spent helping people cope with structural economic changes. Most importantly, inequality and poverty are obstacles to, rather than consequences of, economic growth. In the long term, Canadians must find ways of prospering together.

   I completely agree with Anouk Dey and Michael Marin when they say, that “it’s important to recognize that “education and innovation” isn’t just the product of classrooms and laboratories; they are nurtured through favorable social conditions that are incompatible with elevated levels of inequality and poverty”. Inequality is something that, in a sense, keeps the world balanced. It is a very twisted and complicated topic.  “Education and innovation” are socially determined, therefore, the prospective of which the Canadians should look at this situation should be thorough and in depth. There will always be conflict and dispute about how to approach different situations that society has to deal with. It seems to me that the level of consumerism outweighs the economic crisis and little to no action is being taken. In the end, I feel that the society as a whole must come together in order to pick up the pieces of its chaos and bring together an orderly, productive, and equal way of life.

http://www.thestar.com/opinion/publiceditor/article/1136037--high-levels-of-inequality-jeopardize-canada-s-ability-to-succeed