The gap between rich and poor is widening, with statistics from the past 30 years suggesting B.C. families with children are worse off today than their counterparts one generation ago, according to a new report.
Canadian Centre for Policy Alternatives economist Iglika Ivanova tracked income for B.C. families with kids from the late 1970s up until 2006, the latest stats available.
"What is surprising in B.C. is what's happened to after-tax income," Ivanova said. "They've actually fallen over the last 30 years."
CCPA analysis suggests average after-tax incomes have actually dropped for the bottom 60 per cent of families with kids, but risen for the top 40 per cent.
"Looking at disposable income falling over the past 30 years means that the standard of living that our parents had is not enjoyed by families these days," Ivanova said.
She blames social and taxation policies for the growing inequality. The CCPA is using the report to back calls for increasing the minimum wage, expanding social programs and adjusting tax policies to benefit low and middle-income earners.
But Fraser Institute economist Niels Veldhuis questioned the report's methodology.
"Someone who is in the low-income category is not the same individual who is going to be in low-income five years from now," Veldhuis said. "If you look at the data on low-income mobility, it shows ... we have a very small percentage of the population that stays in low-income."
Veldhuis said government policy should instead be focused on encouraging a robust labour market.
"The healthiest thing is to have lots of employers wanting to hire and have competition for employees. That leads to people moving up and having higher income," he said.
