Filthy Rich: A Look at Canada’s Billionaires

Billionaires have always been prominent individuals around the globe. This is just as true in Canada, where billionaires gleam and scheme their way to higher profits. However, as human suffering in all countries persists, particularly during the COVID-19 pandemic, the actions of billionaires should be questioned and reflected upon. Who are these people, and what is their role within Canadian society?

Canada’s population of billionaires has grown; according to the Wealth X billionaire census, Canada added seven billionaires from its population in 2020, tying as the country with the twelfth most billionaires in the world. This is a jump from fourteenth in the previous census. By the end of 2020, Canadian billionaires had increased their total wealth by $78 billion. On the list of wealthy individuals, there are a variety of occupations held, from owners of large franchises and newspaper companies to leaders of tech giants and even a Formula One racing team owner. Regardless, their extreme wealth is one commonality they share.

But not everything is shiny and gold when it comes to these billionaires. Behind their stories and mansions lie images that they want to hide away from the public. Take Galen Weston and the Weston family, for instance. The Westons (wealth of $13.4 billion) are the owners of Loblaws (yes, that Loblaws), the largest food retailer in Canada. The family has a history of exploiting low-wage labour in Canada and countries like South Africa, stamping down on union mobilization, and ripping off employees by cutting their benefits and pensions. They are also infamous for the Loblaws bread scandal-in 2017, it was revealed that they jacked up bread prices at their stores for over fourteen years.

Daniel Drimmer (with assets of around $20 billion), CEO of Starlight Investments, is the modern-day epitome of the self-interested landlord. Tenants of his properties have been known to suffer from mold, infestations, leaks, and even asbestos. His technique of “renovictions” allows the firm to jack up rent and extract as much wealth from tenants as possible after major renovations.

Billionaires like Joseph Tsai (wealth of $14.5 billion) safeguard political ties for access to and success in other markets. Tsai, owner of the Brooklyn Nets and the tech guru behind the Alibaba Group, was criticized in 2019 for his statements regarding the Hong Kong protests. Referring to Hong Kong protestors as part of a “separatist movement,” many were quick to highlight his ties to the Chinese market; his company began and is based in China, and his statement came on the heels of increased Chinese investment in the NBA and American sports leagues in previous years. This effort to please the Chinese market and fans has resulted in the neglect and mischaracterization of human rights abuses.

Meanwhile, the Irving family (wealth of $5.4 billion), the name behind J.D. Irving Ltd., has become increasingly interconnected with the lives of citizens in New Brunswick. Taking a vertical integration approach, the Irving family have stakes in forestry, shipbuilding, oil refineries, railways, real estate, and media. Their seemingly never-ending expansion has allowed them to disparage political leaders in newspapers to gain tax breaks for resource extraction. Their power and connections get them into meetings with political leaders (ethically or not is a big question) and push out their smaller competitors. Promises of jobs have not been met, and the multitude of tax concessions over the years has led to a decrease in provincial tax revenues.

Has any of this behaviour changed over the past year? The short answer is no. 47 billionaires in Canada control $270 billion in wealth, while 5.5 million Canadians lost their jobs during the COVID-19 pandemic. Internationally, according to a 2022 Oxfam inequality report, the wealth of the ten richest men in the world has doubled. Companies like Loblaws seemed generous in offering $2 pay raises, known as the “hero pay.” However, after the introduction of CERB, the pay raise was eliminated; wages and hours were cut for workers once again. This sort of inequality has implications on the health and livelihoods of Canadians. According to a study from the Journal of the American Medical Association, those in the top 1% of the income distribution live 10 to 15 years longer than those in the bottom 1% in the United States. This is particularly evident with women and visible minorities. Racialized women are disproportionately represented in labour roles that are underpaid with few benefits and weak bargaining power. In the service industry and labour, these groups are more likely to be exposed to COVID-19. This problem is alarming, but this wealth inequality is not new in Canada. For every dollar of wealth generated in Canada since 1996, 66 cents have gone to the wealthiest 20% of families. In 2012, the “Wealthy 86” of Canada compromised 0.002% of Canada’s population, yet they acquired $178 billion in net worth.

What can be done about this? One way to reduce wealth inequality is to impose a wealth tax on these billionaires, which produces government revenue from their assets above a certain dollar amount. According to a 2021 survey, eight in ten Canadians support a wealth tax or higher taxes on the rich. This would allow for greater investments into necessary services that improve life for Canadians. Restrictions on sneaky business practices and large tax concessions can also provide relief and combat wealth inequality. Even raising the minimum wage and encouraging governments to provide service and front-line workers with benefits, such as paid sick leave, can protect workers when billionaire CEOs cut their pay and leave them struggling to get by. Criticisms have abounded about wealth taxes, particularly regarding their failures in Europe. It was difficult and expensive to administer, and those with lots of assets but no cash-like small business owners-were left struggling to pay. These sorts of solutions do decrease the chances of attracting investment, but it’s time to be more tough on billionaires. Proponents of the wealth tax, like Elizabeth Warren, have made important changes addressing these mistakes in Europe, such as establishing a higher tax threshold and imposing an “exit tax” for billionaires that try to leave the country and move their assets to a tax haven. In the end, the rewards could greatly outweigh these risks.  

Wealth isn’t all “champagne wishes and caviar dreams” when it comes to the experiences of the middle-and-lower-class. Recognizing our reality of inequality is crucial to make changes that support all Canadians.