When most of us think of income inequality, we think about gaps between those who are doing well financially and those who are not. But you may be surprised to learn that income inequality is about much more than just a pay cheque.
Here are 3 more things you might not know about income inequality:
1. It undermines fairness: With the rise of income inequality, it’s not simply your effort that determines whether or not you’re going to do well. Increasingly it’s circumstances beyond your control including your background, where you were born, how much money your parents make or your postal code,” says Pedro Barata, United Way’s VP of Communications & Public Affairs. This creates deep divides between the “haves” and the “have-nots,” undermining fairness and creating an environment where hard work is no longer seen as a guarantee for success. Watch this video to learn more about the importance of ensuring individuals and families across our region have equal opportunities to build better lives and stronger futures.
2. It makes entire communities feel “invisible:” “People living in poverty will often talk about lack of access to material items such as money for transit or food. But they may also mention their inability to do things like buy a birthday present for a friend, go to the movies or catch up over a cup of coffee. Sometimes they can’t afford to leave their house,” says Barata. “All of this adds up to social isolation and feeling excluded. People living in poverty will often say they’re invisible.” There is also a tendency towards thinking that the voices of people living on a low income aren’t important. “Who gets to talk to politicians? Who gets quoted in newspapers? Who gets to go to meetings? For a variety of reasons, it’s typically not people living on a low income,” adds Barata. “Often they’re too busy holding down a number of jobs and they live in communities that are too often left out of decision making processes. The consequence? Entire neighbourhoods become divided along income and social lines and we don’t live up to the promise of being a region “where everyone can come from all walks of life and live in harmony.”
3. It deflates our hope for the future: Rapidly growing income inequality is worrisome to all of us. In a recent report conducted by United Way, 86% of survey respondents indicated that they felt the gap between those with high and low incomes is too large. A joint Toronto Region Board of Trade and United Way report also points to a decidedly gloomy outlook as only the smallest number of citizens believe the next generation will experience the progress achieved by previous generations. In fact, for the first time in a century, young people are expected to be materially less well off in adulthood than their parents. For youth facing additional barriers—including poverty, lower levels of education and discrimination—the challenges are even greater.
To learn more about how we’re working together with our partners to bring hope, fairness and opportunity to individuals and families across our region, read this guest post from Michelynn Laflèche, United Way’s Director of Research, Public Policy and Evaluation.