Widening gap between rich and poor in Atlantic Canada: report

This report examines trends in household wealth since the 1980s—in Canada as a whole and in the Atlantic region. In particular it looks at trends in wealth distribution, including Atlantic Canada’s share of national wealth and in the portion of wealth owned by the top, middle and lower wealth groups.

The report examines financial security and trends in total household debt, and assesses how many Atlantic Canadians are so seriously in debt that they could not pay off their debts even if they sold everything they owned, including their homes. It undertakes a detailed examination of household borrowing patterns and of the different kinds of debt, including mortgages, student loans, vehicle loans, lines of credit, credit card debt, and payday loans, and looks at their implications for financial security. The report also includes additional sections on trends in bankruptcies and government debt.

Financial security is a key measure of progress and wellbeing in the Genuine Progress Index (GPI) because adequate wealth enables households to weather the unexpected financial crises that can result from job loss, sickness, or loss of an income-earning partner. They can also provide a reserve for house or car repairs that are suddenly required, or for other unanticipated financial outlays that would strain normal income.

Conversely, financial insecurity can seriously compromise wellbeing and cause a range of other problems including stress, anxiety, illness, and (in extreme cases) even crime and suicide. As well, sharp wealth and income inequalities can threaten social stability and cohesion, and undermine productivity and health. For these reasons, financial security is one of the 20 core components of the Nova Scotia GPI.