When measuring inequality, it’s crucial to understand how income and wealth are earned

VANCOUVER—Taking into consideration the dramatically different ways individuals earn income and accumulate wealth is essential in understanding the nature of income and wealth inequality—and the potential problems it may pose, finds a new essay released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank. “When measuring inequality, you can’t simply compare countries such as Canada, where typically businesses and entrepreneurs only prosper by benefiting society to countries where cronyism and government-granted privileges are widespread and rig the system for elites,” said Jason Clemens, Fraser Institute executive vice-president and co-author of How Income and Wealth are “Earned” Matters in Understanding Inequality.