The Missing Middle Podcast

Welcome to the Missing Middle, a podcast about why the middle class in Canada is disappearing. We hope to help you understand why life is becoming unaffordable for so many in this country, and what can be done to reverse course.

All Episodes

The Missing Middle Podcast

If We’re Not in a Recession… Why Does It Feel Like One?

March 04, 2026 • Cara Stern, Mike Moffatt, and Meredith Martin • Season 1 • Episode 156

0:00 | 17:43

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