Canada’s diverging 0.01%
I plotted official Canadian income data from 1982 to 2017. The incomes are in current dollars, meaning it’s the income as reported at the time and has not been adjusted for inflation.
In 1982, 15.1 million people filed their taxes in Canada and their average income was about $17,000. In 2017, 27.8 million people filed their taxes and the average income was about $48,000.
But the growth of income was not the same across income groups. The incomes of those in the bottom 50% grew a little slower than incomes for those in the top 10%.
The income growth for those in the top 10% was not equal either. Recalling the Occupy protests of 2011, one might assume most of the growth was concentrated in the top 1% of income earners.
While it’s true the top 1% have done pretty well, the real growth was concentrated in the top 0.01%.
Since 1982, the incomes of the top 0.01% has seen extreme volatility, but on average it grew at 7.5% per annum. The bottom 99% on the other hand, saw steady yet low growth, averaging 3.0% per annum.
The late eighties were particularly prosperous for the top 0.01% before a correction in the early nineties. 2015 was another good year followed by another correction in 2016.
In summary, the incomes of the bottom 99% of Canadians grew by almost 200% since 1982, while those of the top 0.01% grew by over 450%.
We live in a capitalist society. If the incomes of those in the top 0.01% grew at over twice the rate of others, it must be because their contributions to the market have been extremely valuable. (I’ll let you be the judge of that.) In any case, at least they’re paying their fair share of taxes. Right?
Data source: Statistics Canada. Table 11–10–0055–01 High income tax filers in Canada
