If Canada isn’t in a recession, why does it feel like one for so many Canadians?
In this episode of Classonomics from The Missing Middle, hosts Sabrina Maddeaux and Mike Moffatt dig into one of the biggest contradictions in today’s economy. On paper, everything looks great. GDP is growing. Corporate profits are strong. Stock markets are hitting record highs. Yet, for millions of Canadians, life feels harder than ever. Food bank usage has doubled since 2019. Young people can’t afford homes in cities where their parents once bought starter houses. And even full-time workers are struggling to make ends meet.
Sabrina and Mike break down what’s really happening beneath those rosy headlines through the lens of the K-shaped economy, where wealthier Canadians continue to thrive while everyone else falls further behind. The top 20 percent are seeing record financial gains from stocks and investments, while the bottom 40 percent are sinking under housing costs, stagnant wages, and shrinking purchasing power.
They explore how this divide is reshaping not only people’s bank accounts but also their trust in institutions, politics, and the very idea of upward mobility. When the data says the economy is strong but your grocery bill says otherwise, frustration and hopelessness grow, and faith in the system fades fast.
Does Canada’s economy feel strong to you, or are you feeling left behind? Join the discussion in the comments.
Chapters:
00:00 – Intro
01:32 – What is a “K-Shaped Economy”? (The Two-Way Split)
02:54 – Why Younger Canadians Feel Locked Out of Growth
04:10 – The Record-Breaking Income Gap in Canada
05:18 – How the Richest Stay Ahead
06:48 – The Parental Wealth trap
08:24 – Hard Work vs. Inheritance
09:56 – Shocking Stats on Food Bank Users
11:47 – Why Canadians Feel Gaslit by GDP data
15:21 – Restoring the Link Between Work and Reward
RESEARCH LINKS:
Statistics Canada - Distributions of household economic accounts, third quarter 2025
The Hub - Canada's growing wealth gap in 7 charts
Food Banks Canada - HungerCount 2025
Statistics Canada - Income and wealth gaps increased in 3rd quarter of 2025
TD Economics - The Days Of Our Lives (K-shaped economy analysis)
Parliamentary Budget Officer - Estimating the top tail of the family wealth distribution in Canada
Hosted by Mike Moffatt & Cara Stern & Sabrina Maddeaux
Produced by Meredith Martin
This podcast is funded by the Neptis Foundation and brought to you by the Smart Prosperity Institute.
