comparable inflation-adjusted figure

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Eartha

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Dear all,

How should I understand the underlined sentence?

Thanks in advance.

About 40 percent of American families in 1929 earned less than the $1,500 annual income that the federal government deemed the poverty level. That compares to 8.4 percent living at the federal poverty level of $15,000 in 2006. In 1929, only 2.3 percent earned more than $10,000 a year. In 2006, 24.2 percent earned more than $100,000, a comparable inflation-adjusted figure.
 

2006

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Dear all,

How should I understand the underlined sentence?

Thanks in advance.

About 40 percent of American families in 1929 earned less than the $1,500 annual income that the federal government deemed the poverty level. That compares to 8.4 percent living at the federal poverty level of $15,000 in 2006. In 1929, only 2.3 percent earned more than $10,000 a year. In 2006, 24.2 percent earned more than $100,000, a comparable inflation-adjusted figure.

It means that $100,000 could buy as much in goods and/or services in 2006 as $10,000 could buy you in 1929. This is because the cost of things goes up over time. Thats what inflation is.

inflation = tong(1) huo(4) peng(2) zhang(4)
Inflation | Define Inflation at Dictionary.com
 
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