Middle-class households are struggling to maintain their lifestyles as stagnating incomes fail to keep up with the rising costs of housing and education, says a new report from the OECD. And the report says governments, including Canada’s, must do more to support the middle class.
The report says the middle class has shrunk such that 70 per cent of baby boomers were part of the middle class in their twenties and only 60 per cent of millennials are now. Globalization and technology have reduced middle-income jobs and more than one in five middle-income households spend more than they earn. Increasing numbers feel the system is unfair.
The rich should bear more of the costs, says report
Governments are urged to have the rich bear more of society’s financial burden by increasing taxes on inheritance, property and investment gains, and by cracking down on tax avoidance.
The report also suggests more be done to make housing more affordable and offer “generous support” for daycare, higher education and retraining programs.
In 2015, Justin Trudeau and his Liberal Party campaigned on a platform to help the middle class and won. Citizens will have a chance to judge his government’s performance in a federal election set for October 21, 2019.
The OECD is an organization of 36 wealthy countries including Canada dedicated to stimulating economic progress and world trade.