SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT AEG

John Mauldin’s latest article reminds us that the debate over the poverty line is not just academic, it exposes a growing reality across North America: the middle class is being squeezed, creating pressures that lead to long-term societal disruption, not just short-term financial strain.

A contributing factor is what economists call the “Valley of Death.” This is the income zone where earning a bit more actually leaves people financially disadvantaged because government benefits phase out faster than income rises. Instead of rewarding work, the system punishes upward mobility, creating a trap where people fear moving from assistance into employment because they could lose child benefits, housing support, or other essential programs.

This is not laziness, it is math. It creates real stress for families who want to climb but feel the rungs of the ladder are missing.

With Christmas less than three weeks away, it is worth remembering that many Albertans and Canadians are living in this gap. We ask that you take notice, show a little compassion and lend a helping hand, it will mean more than you think.

Why It Matters for Alberta

A squeezed middle class affects everything: consumer spending, workforce participation, social cohesion, and long-term economic growth. At AEG, we believe in policies that reward work, support upward mobility, and strengthen the economic foundations that allow families and businesses to thrive.

Better incentives, lower costs, and competitive policies aren’t abstract ideas, they are how we rebuild confidence in the future.  Thanks to John Mauldin for this insightful article, you can read it here.