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…The Parliamentary Budget Officer, a non-partisan office that advises the Canadian government, has created a new model to estimate wealth held by the country’s richest households and the new estimate shows Canada’s one-percent actually holds a much bigger share of total wealth than previously thought…
…The top 1% of households were previously estimated to hold 13.7% of wealth in Canada. Under the new model, that number rises to 25.6% of total wealth. The top 0.01% alone saw their estimated share jump from 0.4% to 5.6% of wealth…
Naturally, that redistribution of the pie means someone’s share of wealth was overestimated. Can you guess who?
- The middle 40% of households were previously estimated to have held 30.5% of total wealth in Canada. That drops to just 25.3% under the newest model.
- The bottom 40% went from 2.3%, to just 1.2% of wealth. In other words, 80% of families hold a little over a quarter of the wealth in Canada.
The revised numbers mean a ticket to the one percent club is fairly steep.
- To be in Canada’s one-percent, you need a minimum net-worth (household assets minus liabilities) of $6.1 million.
- The top 0.1% requires a minimum net-worth of $29.3 million now.
- The 0.01% has a minimum net-worth of $143.1 million dollars.
The vast majority of people across Canada actually fit in the lower 80% of households.
- The middle 40% of households have a net-worth between $100,000 and $1 million.
- Below $100,000, and your household net-worth is in the bottom 40% of households.
The PBO’s new model reveals rich households have a much larger share of wealth than thought. This also means the share of wealth held by the majority of Canadians was massively overestimated...Most of you are poorer than you think.
Editor’s Note: The original article by Stephen Punwasi has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
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