Can we learn something from what happened to Blackberry in our attempt to understand why our middle class is shrinking?Indeed, we can. If we don't recognize global patterns, we will lose our competitive edge and wages will continue to slide.Data shows that widening income inequality in Canada has a direct relationship with globalization.  The chart below compares the Gini Coefficient, which is an index that measures income inequality, to the volume of global exports.Trade liberalization has been good for consumers and businesses. It enabled Canadian businesses to sell products and services to other countries that needed them. It also provided Canadian consumers access to more choices and less expensive goods.Over time, developing countries became more skilled and equipped and corporations became less loyal to the developed world.Developed countries with higher labour wages have to compete for jobs with developing countries with lower wages. This competition puts a downward pressure on wages in developed countries like Canada and an upward pressure on wages in developing nations.That is why the middle class is growing in countries like China, Brazil and India, while it's stagnant in the US, Canada and Western Europe.A shrinking middle class will be detrimental to our economy and quality of life. We could end up with an uneven society with a very small wealthy class and a majority of working poor that could barely sustain itself, never mind the economy.If Canada doesn't recognize this transition and doesn't prepare its economy for it, the rising income inequality gap will get worse.Some may argue that since globalization is accelerating income inequality, perhaps protectionism is the answer to defend our middle class.They would be mistaken.Erecting trade walls would hurt our economy, stall growth, remove competitive forces and keep consumer goods prices higher than they need to be. It would limit the ability of our businesses to sell to other countries.For a relatively small country that relies heavily on exports, protectionism would negatively affect millions of jobs.  Instead, Canada needs to find ways to maintain economic and technological advantages.Ensuring that tax rates are competitive is not enough.  We need to transform our economy to a new, knowledge-based economy.Canada is positioned to excel in specialized sectors that the world will need but in which very few countries have the skills and the knowhow to succeed.  Areas such as healthcare services, infrastructure design-build, alternative energy, environmental technologies, data management, financial services and climate change adaption among other areas are services that the world will need in the 21st century.We are well positioned to compete in such emerging sectors.Canada needs to prepare our education system to graduate skills needed for the new economy; create incentives to nurture emerging specialized industries, focus on increasing productivity and reform public policies to encourage investments in those areas.Blackberry invented the idea of receiving emails on mobile phones.  It became a global leader for smart phones.  Eventually other companies emulated the concept and improved on it.  Blackberry was slow to adjust and stay ahead of the curve while other companies took over.  Now the future of Blackberry as a relevant market player is in question.Canada needs to avoid falling into a similar trap.Our economy has been propped up by consumer spending (and excessive debt) and natural resources extraction.  Meanwhile, other fundamentals are gradually weakening.The uneven growth in income is a leading indicator letting us know that we are at risk of falling behind.If there is ever a role for the government in the economy, it is under circumstances like these.While the private sector can play a role, most corporations are indifferent to geography (notwithstanding transportation costs).  If Canada loses its economic advantage, they can move somewhere else and take their jobs with them.It is our government that needs to play a visionary leading role in helping steer our economy to maintain a competitive global edge.Omar Alghabra is a Distinguished Visiting Fellow at the Faculty of Engineering and Architectural Science of Ryerson University and a Former Member of Parliament for Mississauga-Erindale.