Wealth inequality

Toronto City Council has approved initial steps toward a city-owned grocery store pilot to increase competition and drive down food prices. The move addresses growing concern over Canada's grocery oligopoly, where major chains have posted outsized profits—a trend critics link to "sellers' inflation" since COVID. SCP's CEO Matthew Mendelsohn sees the pilot as a promising step toward public ownership models that prioritize affordability over investor returns.

Canada's wealth gap appeared to narrow between 2019 and 2023 and we set out to make sense of this. SCP's Director of Policy Dan Skilleter, the lead author on our 2024 Billionaire Blindspot report, connected with sector colleagues working on wealth concentration and dug into all the best available data. What he found was that the dip was largely a mirage, driven by a pandemic housing boom that temporarily inflated the one asset ordinary Canadians hold: their home. Meanwhile, these soaring prices locked out an entire generation from building wealth altogether.

Canada is overdue for a broader debate on intergenerational fairness and how our taxes and benefits support—and exclude—different age groups. As Kiran Gill and Matthew Mendelsohn explain in Policy Options, we continue to live with programs designed by baby boomers to provide security to seniors, even if those seniors are well off. Meanwhile, young adults in our country face challenges entering the labour market, securing stable employment and saving to build some measure of economic security in the face of rising costs. They propose a policy designed to make the economy work for younger Canadians—a youth supplement to the existing Canada Workers Benefit. This youth employment supplement—aptly coined a YES!—could help rebuild financial security and allow younger adults to buy homes, finance education for themselves or their children and save for the future.

We all want more investment in Canada's economy. But as SCP Chair Jon Shell explains in this video, when it comes to foreign investment in the Canadian economy, or FDI, we have to ask: is it investment that builds? Or investment that buys? Because these are two very different things.

The 2026 World Inequality Report is out and the results paint a picture of a world in which a tiny minority commands unprecedented financial power, while billions remain excluded from even basic economic stability. As SCP Director of Policy Dan Skilleter writes, Canada is far from immune to these global trends: although our own GDP keeps rising, wealth gains have been concentrated at the very top, while many households struggle to afford food and housing. The top 1% in Canada hold about 29.3% of total wealth, making our country's wealth inequality even more pronounced than our own Canadian Parliamentary Budget Officer reports. The good news is, momentum is building in Canada for better wealth data, shedding light on our "Billionaire Blindspot."

Our political leaders must be willing to make difficult tradeoffs to rebalance policies toward the young and away from older Canadians, write Jean-François Daoust, Liam O'Toole and Jacob Robbins-Kanter in Policy Options. The broader economic picture for younger Canadians offers little hope, and economic frustration is shown to run hand-in-hand with political alienation. As intergenerational inequality persists and deepens, Canada risks experiencing an even sharper decline in trust in its democratic institutions than what already exists. Building affordable housing and supporting young families are essential first steps in a much-needed generational reset that puts fairness at the centre of Canadian political life.

Some cryptocurrency advocates are promoting the use of stablecoins as a common currency, arguing that this new currency could help the cost-of-living crisis and promote economic equality – particularly for young people. Law professor, money expert and SCP Fellow Dan Rohde is not convinced that crypto can help address economic inequality. In this explainer, he breaks down what stablecoins are and aren’t, and how to think critically about their promises.

Our government’s best available data on Canada’s wealth gap excludes, by design, the wealthiest families in the country. As SCP Director of Policy Dan Skilleter writes, if we didn’t have the Parliamentary Budget Officer fact-checking Statistics Canada’s work, their numbers would tell us the top one per cent own only 2.5 per cent of all wealth – not nearly 25 per cent of all wealth in Canada, as the PBO reports. We like to think of Canada as a beacon of egalitarianism compared to our southern neighbours, but when you add in data from "rich lists" published by Forbes and Maclean's, our wealth concentration looks quite similar to the U.S.

As Canadians, we like to think we’re strong and free. But as SCP's Director of Policy Dan Skilleter explains, when it comes to the wealth gap, we're looking more like America Lite—better manners, but almost all the inequality. The way our economy is set up means that most of the benefits from economic growth go to financial interests and speculators, rather than to workers or other businesses. We can shift economic power to more people and aspiring entrepreneurs by making them owners. When more people have a stake, Canada’s economy works better for everyone—not just investors.

Levels of our country's Foreign Direct Investment, or FDI, do not actually tell us much about the state of the economy. One large deal can significantly affect total FDI inflows, which can vary dramatically from year to year. Plus, as SCP Fellow Sarah Doyle and SCP Chair Jon Shell write, not all FDI is created equal. Distinguishing between beneficial and harmful FDI is even more important now, in the context of a global trade war and threats to Canada’s economic sovereignty. In this explainer, they unpack FDI: what it is, when it is and isn’t beneficial and why understanding these nuances matters.