x Economic prosperity in Canada = -
x Avg. earnings in Canadian households X after WWII
o ? the purchasing power of families Xb/c economic productivity was enhanced by
o Economic downturn began around 1973
? demand for reduced taxes
People working harder and longer but incomes have not grown proportionately
Most families= dual-income but buying a house and owning more of it that the
govt. = challenge
x Economic prosperity & the benefits of materialism are not equally shared
x One end of the spectrum: lines for food banks, poverty of some rural farmers, used clothes,
baloney, lack of hygiene, despair & depression
o But at the same time world of booze, illicit sex, welfare, cheats, laziness, and deceit
x Other end of spectrum: richest neighbourhood w/ luxuries. World of multimillion $ homes,
indoor swimming pools, outdoor tennis courts, high security systems, brand named items etc.
Language & lifestyle Æ brand names, caviar, spoiled poodles, ambition & success.
o At the same time, world of idle richness, misbegotten inheritance, greedy property
owners, fraud, and deceit.
x Majority live b/w these 2 extremes.
1) How do we measure inequality that falls b/w these 2 extremes?
2) How do we understand fluctuations or variations around this average? How have they changed?
3) Is economic inequality growing or shrinking??
x Income inequality = lowest in Sweden and highest in states (Canada is in b/w)
x Income inequality has widened in most rich countries over the past few decades but hardly by
any in Canada.
o Taking from the rich to give to the poor.
o Govt. redirects some income from the top quintile to o/ quintiles.
Explanations of Income Inequality:
x Income inequality related to what kind of job a person holds
x Some people have talents that let them be famous which involve X salaries
o Jarome Iginla (Hockey)
o Victoria Bertram (Ballet)
o Ben Heppner (Opera) Talented Canadians w/ substantial incomes
o Lorie Kane (golf)
o Shania Twain (pop music)