okay, here's a lenghty comment from my urban planning friend:
Toronto is a second or third tier global city – depending on your definition
that means toronto should see a socio-economic bifurcation with a very wealthy financial/information/technology services elite and a minimum wage perma-temp service workforce like starbucks/best buy sales people et al. To serve the elite, and a shrinking middle class. This is already a recorded fact in first-tier global cities like hk/ny/london
evidence of this was first seen in toronto with a united way study that was intending to find new offices – i.e. Under serviced neighbourhoods. I think late 90s, a bit after the anne golden report on what to do with toronto. The united way study turned into the poverty by postal code report because, well, they found a huge ring of poverty outside the downtown core. It used to exist before, but it had worsened dramatically. So that then set off a bunch of academic studies that confirmed it six ways from sunday over the years.
Normatively, the problem is that canada (and north america) predicated its development on having a strong middle class (you probably learned about it in your degree) to drive economic development after the war – that way there would be little need for social services, etc. So now, while there may be more absolute people in the middle class, their proportion as a percentage of the overall population is shrinking.
More practically, what you end up having is a divide in the housing market. And in north america, your personal wealth is based on owning property. So, the significant number of low-end service sector employees are now competing for the same living space as the services elite. There’s only one outcome to that. The poor lose out and can’t afford to have children and have no secure housing tenure. There’s also no incentive – as we’re finding out – to drop rental control because dropping rental control is simply wiping out the lower end of the rental market. Why rent to poor people when you can lease to an elite? Maybe you can cope by moving out to the suburbs – but now you’re talking about commuting into work. Fact is weaker socio-economic groups are not at all mobile – the upfront cost of a move is too much to bear, so you have to make do with where you are while the cost of living creeps up around you. Not enough to force you out, but enough to keep you trapped. Pretty much it is only the middle class that can afford to move out to the suburbs and try to cope by commuting. But now you’re talking about families that spend up to 4 hours a day commuting on top of their work day. Diminished family time has very real social consequences – and this is happening to the middle class upon whom our society is predicated. That’s nothing to mention of the resource costs involved in maintaining infrastructure like that to support commuting, environmental issues, waste of human capital.
But the fact the middle class now lives outside toronto is beside the point. Administratively, toronto can only deal with its own residents. So now you have wealthy elite concentrated in the downtown and scattered pockets throughout the city, but an increasing number of people stuck at the other end of the livelihoods spectrum. So what do you do? Elites are always loathe to see more of their resource go towards the poor, so the lower socio-economic groups are frozen, and stuck by increasingly byzantine regulations when it comes to accessing social services that might offer them a leg up. Politicians’ careers depend not so much upon the voters anymore as much as their donors – donors generally aren’t poor. An inevitably outcome is a deeply, deeply divided city. Maybe that’s not a problem, and what people want – that’s not for me to say. The inevitable level of division has very real consequences. And canada being what it is, our social programmers pretty much end up trapping people (star has been running a great series on people trapped in the system because it costs them significantly more personally to break out on their own, rather than live on the margins).
Anyway, the globe series was nothing new. They’re just playing catch-up to the deepening poverty game that everyone except the fraser/cdhowe types have been realising. We’re on the cusp of something, and it’s a question of what toronto/ontario/canada wants to become. And it’s really not a question of people not having the initiative. Its barely possible to make ends meet working 2 full time shift jobs in toronto (where the jobs are – you don’t have the same level of access or accessibility in the suburbs so moving to save living expenses is moot – you use up whatever cost of living you might have reduced with decreased mobility and opportunity) so you don’t even have time to upgrade your skills, let alone the money. And you’re not able to access the resources that might let you do that unless you’re absolutely destitute, because the slightest income you show basically counts against you. Its also next to impossible to claim ei now to help you between jobs. Something like less than 75% of full-time workers qualify for it now – and if you’re part-time, you can forget about it.
Anyway, rambling. Globe and mail piece wasn’t anything special, but it’s the basis for a very complex and deeper discussion that simply isn’t taking place.