Quote:
Originally Posted by CaptainCrunch
Isn't that above the Canadian inflation rate?
Yup, inflation rate is 2.9%
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Quote:
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Over 25 years, the mean after-tax income in Calgary’s poorest neighbourhoods inched up by a mere five per cent; in the richest neighbourhoods, meanwhile, that figure ballooned by nearly 75 per cent.
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5% over 25 years isn't beating inflation. Inflation is 2.9%
per year. It's not like the richest neighborhoods are averaging a 75% income increase per year... it's over 25 years.
Maybe I'm reading that quote wrong, but it sounds like the average income has only gone up on average 0.2% per year (5%/25 years) over the past 25 years in the poorest neighborhoods and 3% per year (75%/25 years) in the richest neighborhoods. This means the richest neighborhoods are getting income increases right around inflation, while the poorest neighborhoods are losing 2.7% buying power every year.
EDIT: The number's don't work out quite like I mentioned as I didn't include that the interest would be compounded (ie 0.2%/year compounded ends up being a little more than 5% after 25 years) but they're close enough for discussion.