Uncommons Podcast: Wealth inequality and inclusive growth with Matthew Mendelsohn

There has never been a federal budget quite like this one. Canada faces a moment of extreme peril, threatened by an American administration that has abandoned our mutually beneficial trading and security regime. In our pre-budget submission, Social Capital Partners recommends that Budget 2025 focus on broadening ownership to ensure the benefits of economic growth are more widely shared. Policy choices should move us away from an economy fueled by wealth extraction that enriches billionaires and inflates the bottom lines of foreign funds, and instead, move us towards more local reinvestment that builds an inclusive, sustainable and resilient democratic future where all Canadians have realistic chances to build economic security.

Rather than using the tax system to prevent wealth concentration, our current tax system promotes it. Those who earn income from their investments have more income left over after taxes, allowing them to accumulate wealth more quickly than others. SCP Fellow Silas Xuereb explains how, south of the border, we are witnessing the consequences of runaway wealth inequality – billionaires use their media conglomerates to get political favours, exploit the instruments of the state to enrich themselves and, increasingly, secure political office. All of these trends are leading to the erosion of democracy and public policy that advances the interests of the wealthy at the expense of everyone else. If Canada does not rebalance our tax system to prioritize work over wealth, we may soon find ourselves on the same path.

Breaking Points podcast correspondent James Li sits down with corporate lawyer, economic analyst and SCP Fellow Rachel Wasserman to discuss Trump's executive order opening up 401k plans to private equity. Trends show that with rising interest rates and frozen exit markets, the private equity investment model could be under serious stress. So, what are the implications of making this type of investment available to retail investors and their retirement plans? Rachel walks James through how private equity works, what's so dangerous about the buyout-PE model and who might get left holding the bag.