Reference no: EM133702077

Assignment:

A Contemporary Example of Income Gap

Even in contemporary societies with wealthy economies, there can be a big gap between those with wealth and those living in poverty. In the early 2000s, Calgary experienced an unprecedented economic boom; however, journalist Amy Steele argued that not everyone in Calgary benefited from the boom. In her article "Boom gone bad?," she explains how Calgary's supercharged economy was making life worse for many Calgarians. She suggests that while Calgary's boom was impressive on paper, it translated to some serious financial troubles for many Calgarians.

... [S]ays Gord Christie, executive secretary of the Calgary District Labour Council.

"The boom is doing fabulous things for 20 per cent of our population, but for the other 80 per cent, the average, it's sad. Eishty per cent of our population isn't really and truly benefiting from our boom.

Calgary is rapidly becoming less affordable for people whose incomes are not keeping pace with cost of living increases. Housing prices increased by 49.6 per cent between August 2005 and August 2006.

There's also a growing income gap between rich and poor. In 2004, the most recent statistics available, the lowest 20 per cent of income earners made an average of $13,100 a year while the top 20 per cent made an average of $152,800. The homeless population increased by 32.3 per cent between 2004 and 2006 and is now a whopping 3,436 people.

-Source: Amy Steele, "Boom gone bad?"

Fast Forward Weekly, November 2- November 6, 2006, pp. 6-7.

1) What evidence does Steele use to support her argument that those living in poverty are not sharing in the booming economy?

2) Which evidence in the source would you identify as "facts"?

3) Could this be a similar experience to that experienced by workers during the 19th century?

4) What might a classical liberal say about this situation?

5) What might a modern liberal say about this situation?