Economics professor offers grossly misleading analysis of inequality in Canada

Dalhousie economics professor Lars Osberg’s The Scandalous Rise of Inequality in Canada was published just in time to be eligible for the always hotly-contested title of worst Canadian economics book of the year.

Osberg’s central theme is that inequality in Canada has been steadily increasing and this poses a threat to economic growth, financial stability, social mobility, limiting climate change and even democracy—at times, it seems every imaginable problem is blamed on inequality. This makes it even more important to get the facts about inequality right.

The most misleading chapter in the book concerns top-income earners. Osberg claims that “the income share of the top 1 per cent… is the aspect of inequality that has changed the most in recent years.” However, the chapter on inequality at the top of the income distribution exclusively features data for its increase in the United States, driven by the outrageous success of technology firms such as Facebook, Apple, Alphabet, Microsoft and Nvidia. Nowhere is the data for Canada cited, but in fact the 1 per cent’s share of income in Canada has fallen since 2007, which probably explains why Osberg avoided it.

The real problem with Canada’s high-income earners over the last two decades is not that they’re gobbling up more income at the expense of everyone else, but that we do not have enough of them. Nor do the top 1 per cent in Canada earn nearly as much as in the U.S. Pretending that incomes in Canada are as skewed as in the U.S. is another example of importing narratives without examining whether they are applicable here. This might be forgivable for the average person, but it’s scandalous and disingenuous for a professor specializing in income distribution.

Raising taxes on the richest 1 per cent has a “populist” appeal. However, former finance minister Bill Morneau wrote in his memoire Where To From Here: A Path to Canadian Prosperity that he came to “regret supporting the idea of a tax increase on the 1 percent” because “it began a narrative that made it difficult to have a constructive dialogue with the people prepared to invest in research and development to benefit the country… our proposal’s biggest impact was to reduce business confidence in us.” Before becoming the Trudeau government’s current finance minister, Chrystia Freeland acknowledged that “many of the ultra-high net-worth individuals flourishing in today’s global economy are admirable entrepreneurs, and we would all be poorer without them.”

Another practical consideration for Morneau was that “Canada’s personal income tax rates are not competitive with the U.S. where highly skilled labour is concerned.” Finally, Morneau acknowledged that taxing the rich in Canada will not raise much money, because “the number of taxpayers affected will be quite small… the math just doesn’t work.” I calculate that confiscating all of the income the 1 per cent earn above $200,000 would fund total government spending in Canada for a paltry 44.2 days.

Besides misrepresenting the importance of Canada’s 1 per cent, Osberg twice makes the patently false claim in his book that “income from capital… is roughly half of GDP in Canada.” Just last week, Statistics Canada’s estimated labour income’s share of GDP was 51.3 per cent while corporate profits garnered 26.0 per cent (including profits reaped by government-owned businesses through their monopolies on utilities, gambling and alcohol sales). Another 12.6 per cent of GDP was mixed income earned by farmers and small businesses, which StatsCan cannot disentangle between labour and capital. The final 10.2 per cent of GDP went to government taxes on production and imports, which clearly is not a return on capital. I would expect undergraduate economic students to have a better grasp of the distribution of GDP than Osberg demonstrates.

Among the many evils generated by inequality, Osberg cites democracy as “threatened by the increasing concentration of wealth and economic power in Canada.” Osberg must believe Justin Trudeau’s decade-long tenure as prime minister reflects the choice of our economic elites. If so, they have much to answer for; besides steadily-degrading Canada’s economic performance and international standing, Trudeau attacked these same elites by raising income taxes on upper incomes, increasing the capital gains tax, and undercutting the fortunes of the oil and gas industry on which much wealth relies. If our economic elite really controls government, it seems they made an incredibly bad choice for prime minister.

Philip Cross

Senior Fellow, Fraser Institute

Related Topics:#FraserInstitute #PhilipCross InequalityInCanada LarsOsberg ScandalousRiseOfInequalityInCanada

Up Next

Health Canada received over a million reports of COVID vaccine adverse events: records

Don't Miss

Ottawa once again defends egregious mismanagement during COVID

Todayville

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Marjorie Taylor Greene’s ’60 Minutes’ interview reveals power struggle between populists and RINOs

Alberta / 8 hours ago

The case for expanding Canada’s energy exports

International / 8 hours ago

Trump admin wants to help Canadian woman rethink euthanasia, Glenn Beck says

Local Business

Red Deer Downtown Business Association to Wind Down Operations

Published on December 10, 2025

Red Deer DBA

The Downtown Business Association (DBA) Board of Directors has made the decision to wind down the Association’s operations at the end of 2025.

The Board determined that the Association is no longer able to operate sustainably under the financial framework available for 2026. After exploring all reasonable alternatives, the Board concluded that it could not continue without reducing services to a level that would no longer provide meaningful value to levy-paying businesses.

The DBA does not receive any operating funding from City Hall in a regular year, all funds raised are through Business Improvement Area Levy that consists of a mandatory levy placed on all businesses operating within the Business Improvement Area. These funds are legislated under the Municipal
Government Act, to be used to promote the Business Improvement Area, which is achieved through marketing and event initiatives along with providing advocacy support primarily to local government on behalf of the business community.

In recent years, the DBA has been a committed advocate for re-examining the approach to Downtown Governance. The Board has consistently maintained that the responsibility for funding downtown initiatives in such a socially charged environment should not rest solely with the business community.

Despite their efforts, the DBA recognized that the funds generated through the Business Improvement Area Levy were insufficient to effectively address the growing challenges of the current operating environment. This ongoing financial strain highlighted the need for a more equitable and sustainable
model to re-establish the downtown as a safe and welcoming heart of the city.

At the annual DBA budget presentation to City Hall, the DBA requested the essential funding needed to implement the Greater Downtown Governance Committee’s recommendations — work that the DBA is uniquely positioned to lead and has been delivering despite depleting resources for many years. The request was not approved. Instead, The City offered a one-time $100,000 Grant-in-Lieu, paired with a proposed 60% increase to the Business Improvement Area levy in 2026.

After careful analysis, the Board concluded that increasing the levy would place undue strain on already challenged businesses and compromise the DBA’s role as a trusted advocate. Operating with the reduced funding of $225,000 would require further staff reductions in an already under resourced environment and a significant reduction in programs, making it impossible to deliver the level of support that downtown businesses deserve and vitally need.

Beginning January 1, 2026, the City of Red Deer will become the primary contact point for matters previously supported by the DBA, including downtown support programs, business-district coordination, events, safety and cleanliness support, and stakeholder engagement. The DBA will work with City staff to support a smooth transition.

The DBA will continue to provide Clean Team services through the delivery of the City-funded environmental contract until February 1st, 2026.

Quote from CEO, Amanda Gould:

“To our business community, we have always operated with your best interests in our heart, continually driving the vision of a thriving downtown environment that serves every member of our community. The changes ahead will have a significant impact on downtown, as there will no longer be an organization dedicated to ensuring the downtown remains top-of-mind, leading events, marketing initiatives, or advocating on your behalf. It is likely you will experience less coordinated support and collective representation.

After 13 years of service to you and our beautiful downtown, it is with great personal sadness that we find ourselves here, but our message remains clear – addressing the unique challenges of our downtown should not rest solely on your shoulders. We cannot, in good faith, collect a levy that does not enable us to provide the essential services needed for our evolving downtown landscape”.

Quote from DBA Board Chair, Brandon Bouchard:

“The incredible staff at the Downtown Business Association have consistently delivered on their mandate with outstanding dedication and effectiveness. Through their efforts, they have successfully promoted the downtown area, organized impactful marketing and event initiatives, and provided steadfast
advocacy support for the business community. Their work has extended well beyond the legislated requirements, as they have proactively responded to the evolving needs of downtown businesses, adapting to challenges and supporting operations within a complex and changing environment.

Despite the staff’s relentless commitment to positioning the DBA as an effective leader for downtown interests, the absence of a sustainable funding model has made it impossible to continue delivering meaningful support. The Board cannot, in good conscience, propose a levy that does not enable the
Association to meet the required level of service, address the shifting priorities of the business community, or respond to the continually evolving needs of the downtown”.

Agriculture

Growing Alberta’s fresh food future

Published on December 10, 2025

Government of Alberta

A new program funded by the Sustainable Canadian Agricultural Partnership will accelerate expansion in Alberta greenhouses and vertical farms.

Albertans want to keep their hard-earned money in the province and support producers by choosing locally grown, high-quality produce. The new three-year, $10-milllion Growing Greenhouses program aims to stimulate industry growth and provide fresh fruit and vegetables to Albertans throughout the year.

“Everything our ministry does is about ensuring Albertans have secure access to safe, high-quality food. We are continually working to build resilience and sustainability into our food production systems, increase opportunities for producers and processors, create jobs and feed Albertans. This new program will fund technologies that increase food production and improve energy efficiency.”

RJ Sigurdson, Minister of Agriculture and Irrigation

“Through this investment, we’re supporting Alberta’s growers and ensuring Canadians have access to fresh, locally-grown fruits and vegetables on grocery shelves year-round. This program strengthens local communities, drives innovation, and creates new opportunities for agricultural entrepreneurs, reinforcing Canada’s food system and economy.”

Heath MacDonald, federal Minister of Agriculture and Agri-Food

The Growing Greenhouses program supports the controlled environment agriculture sector with new construction or expansion improvements to existing greenhouses and vertical farms that produce food at a commercial scale. It also aligns with Alberta’s Buy Local initiative launched this year as consumers will be able to purchase more local produce all year-round.

The program was created in alignment with the needs identified by the greenhouse sector, with a goal to reduce seasonal import reliance entering fall, which increases fruit and vegetable prices.

“This program is a game-changer for Alberta’s greenhouse sector. By investing in expansion and innovation, we can grow more fresh produce year-round, reduce reliance on imports, and strengthen food security for Albertans. Our growers are ready to meet the demand with sustainable, locally grown vegetables and fruits, and this support ensures we can do so while creating new jobs and opportunities in communities across the province. We are very grateful to the Governments of Canada and Alberta for this investment in our sector and for working collaboratively with us.”

Michiel Verheul, president, Alberta Greenhouse Growers Association

Sustainable Canadian Agricultural Partnership (Sustainable CAP)

Sustainable CAP is a five-year, $3.5-billion investment by federal, provincial and territorial governments to strengthen competitiveness, innovation and resiliency in Canada’s agriculture, agri-food and agri-based products sector. This includes $1 billion in federal programs and activities and $2.5 billion that is cost-shared 60 per cent federally and 40 per cent provincially/territorially for programs that are designed and delivered by provinces and territories.

Quick facts

Alberta’s greenhouse sector ranks fourth in Canada:

195 greenhouses produce $145 million in produce and 60 per cent of them operate year-round.

Greenhouse food production is growing by 6.2 per cent annually.
Alberta imports $349 million in fresh produce annually.

The program supports sector growth by investing in renewable and efficient energy systems, advanced lighting systems, energy-saving construction, and automation and robotics systems.