How Globalization Has Left the 1 Percent Further Ahead

Canada is not alone with a widening income divide – a few making great gains while the vast majority struggles with stagnant wages. Analysis from the Globe and Mail points to globalization as the reason. US competition may pressure wages, and the skilled with global appeal are paid more than those with local appeal. “The top 1 per cent of earners [has] seen growing demand for their specialized skills in the knowledge economy, while lower-income earners have felt the pressure of offshoring and technological change,” write Tavia Grant and Janet McFarland. Most of the high-paid elites are in finance and management. The analysis suggests that “Those with the prized skills for today’s economy are seeing above-average rewards, while demand for others is dwindling – creating a more polarized job market.” Yet even the most skilled, many who are well educated and try to maintain a modest lifestyle, have reason to worry about stable investment in infrastructure, education, job security, community cohesion and trust. One source suggests a need to adjust to “fairly remarkable social change.” – YaleGlobal