Income Inequality And Cities: Calgary's Two Faces Show Pitfalls Of Unbridled Growth

First Posted: 12/05/2011 4:47 am Updated: 08/07/2012 2:00 pm

CALGARY and TORONTO -- Sipping coffee in a spacious Calgary bungalow, Sandra Horley is a long way from home. The single mother of two lives in Forest Lawn, an east side neighbourhood considered among the city’s most challenged. Car-less and often without bus fare, the 43-year-old, who depends on social assistance, gets around mainly by foot.

But for the purposes of our discussion, Horley has agreed to meet at the tidy suburban cul-de-sac on the other side of town, where her kids’ elementary school principal, Jean Johnson, lives. The area’s manicured lawns are a world apart from her hardscrabble community, and yet, when it comes to gauging Calgary’s economic disparity, Horley says the distance between here and Forest Lawn is not the one that matters most.

“In Calgary, I see it like this,” she explains, opening her arms like an alligator’s jaw. “You have your wealthy,” she says, glancing up at her top hand, “and then you have your middle class and your poor, and they’re down here. Because of the oil industry in this province and in this city, there is a big discrepancy here.”

Simplistic though it may seem, the evidence is mounting that Horley’s assessment isn’t far from fact.

More on income inequality at Mind The Gap: How Trickle-Down Tax Policy Is Reshaping Canada.. Living In Unequal Cities A Health Risk To Rich And Poor.. How The Income Gap Raises Home Prices For All Of Us.. Full Coverage..

Calgary was built on possibility and an ingrained belief that success is available to all those who seek it. But from 1980 to 2005, the gap between rich and poor neighbourhoods deepened dramatically. While the region roared into a period of unprecedented prosperity, Census data show that the income differential between have and have-not communities (measured with the Gini coefficient, using after-tax values) grew by 81 per cent -- far more than any other urban centre. The increase was enough to vault Calgary over Toronto, giving “The Heart of the New West” the dubious distinction of leading the country in neighbourhood income inequality.

According to University of Toronto sociologist John Myles, who crunched the data in a 2011 working paper titled “Why Have Poorer Neighbourhoods Stagnated Economically, While The Richer Have Flourished?”, the shift was caused primarily because “the rich were getting richer.” Over 25 years, the mean after-tax income in Calgary’s poorest neighbourhoods inched up by a mere five per cent; in the richest neighbourhoods, meanwhile, that figure ballooned by nearly 75 per cent.

None of this comes as a surprise to Noel Keough, an urban design professor at the University of Calgary, who has tracked the issue of income inequality in the city since the ’90s. As for the root of the disparity, he, too, points toward the collection of gleaming corporate headquarters clustered downtown.

“The oil and gas sector earns significantly higher [incomes] than any other sector, and it’s a minimum of people that work in oil and gas,” he says. “The concentration of a single industry with large, multinational players concentrates the wealth that’s generated in our city and in our province.”

Keough highlighted the degree to which the bounty has been increasingly flowing into the pockets of the few in a recent report he authored for the non-profit Sustainable Calgary. In 2005, he noted, the top 10 per cent of Calgary families earned 37 times as much as those at the bottom, which represents a 13 per cent increase in the gap since 2001.

At the time of the last Census, 14 per cent of people in Calgary were living below the low-income cut-off, which was slightly below the national average. But a recent survey of the concerns of Calgarians suggests that many more are struggling: almost one-third of respondents worried about housing costs; a fifth, meanwhile, said they were anxious about having enough money to put food on the table.

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Yet as the city grows, there’s a sense that these issues -- however prevalent -- are becoming increasingly hidden.

“You honestly can live in your world and never see it,” explains Johnson, who says that the communities that have sprung up in recent decades, “are not really subdivisions so much as they’re like little satellite [cities].”

But as the gulf widens between the myth of Calgary and the reality of many who live here, some blame pride in place for obscuring the social and economic consequences of the deepening divide, which they say is taking a toll on everything from household balance sheets to neighbourhood schools.

“Calgary likes to think of itself as the communal best, richest, biggest, newest, etc.,” says Dan Meades, the director of the non-profit Vibrant Communities Calgary. “It is hard to feel that way if we also confront the fact that so many people are poor.”

It’s a tension that helps to explain why, in a land of plenty, it can be even tougher for those who are left behind.


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06:07 AM on 01/03/2012
I'll be coming to Canada soon and again. Spreading the wealth would be great, it would be nice to pay the same Motel rates in Banff, Lake Louise, Yellow Knife and Lillooet. I believe the Motel in Pemberton next to the rails, will enjoy $1500 per night, one may get a Looney back for the Change.
Wonder why those Hockey players make so much money?
If trophies are given to the 9,386th place at a Marathon, there wont' be one next year.
02:41 PM on 12/13/2011
We need a "hope and change" revolution in Canada to spread the wealth
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SkeeBee
Offending InFoxtrination Sufferers With Facts.
11:52 PM on 12/05/2011
As someone who just escaped from the state of Oilberta, after 4 years there in central Redneckistan, I can state this reporting is 100% on, 'the money'.
There's a lot of stupidly, and sadly stupid, rich people and then QUITE a gap to the lower end of the socio-economic scale. Especially when contrasted with Canada's 9 provinces.
04:58 AM on 12/06/2011
If the people who have money there are stupid, what does that make YOU ? Below stupid ??

I can smell your class envy from here.
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SkeeBee
Offending InFoxtrination Sufferers With Facts.
01:12 PM on 12/06/2011
I think with a successful business of 25 years and a few Uni degrees, my "class", thanks for sharing your wildly incorrect ASSumption, is 'secure' as far as you would be concerned. Not that I give a flying $!#@ about it.

Oilberta has the LOWEST post secondary educated citizens and the highest post secondary/non educated average wage.
How?
"All Hell For a Basement."

Ergo: There ARE a lot of simple, low brow, and yes: Stupid people tooling around Oilberta.
I take it you've never been there?

Thanks for playing.
01:37 PM on 12/06/2011
money=smart=stupid idea
Just another example that obedience not brains brings in the cash.
It's not envy. Your lack of perception is dangerous to your fellow citizens.
10:55 AM on 12/06/2011
What does that make those to stupid to get rich?

There will always be a gap. Like everyone else in this thread, you keep forgetting about the gigantic middle class in Calgary that fills that gap.

You're acting like there's the super rich and the super poor and nothing in between.
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SkeeBee
Offending InFoxtrination Sufferers With Facts.
01:15 PM on 12/06/2011
That first statement suggests that ONLY the intelligent seek to become rich and therefore, only the rich are intelligent.

That massive collapse of logic, and grasp of reality, suggests you won't get it.
I'm sure you'll find that there are far LESS intelligent people in the upper stratosphere than amongst the, 'peasants'.
But I won't bother getting into explaining why.

Specifics won't fit in with your generalities.

If you've spent anytime in Oilberta, especially, more and more so, in Mini-Dallas (Calgary), you'd not bothered to type your last sentence.
And you'd know there's no "acting" going on.
01:50 PM on 12/06/2011
Doing what you're told and abandoning ethical treatment of other people is a sure fire way to secure or increase your income with the current dominant business model. Calgary is built on lower class jobs paid at an inflated rate. What do you think will happen when they're done with you? A lot of people that are doing well are under the impression that they are the 1% swaggering around in daddies boots. You are not in a much better spot than those you look down on unless you are in a position to steer and topple governments. The real 1% see you the same way as you see the kid behind the counter at the coffee shop, someone to blindly serve them.
11:04 PM on 12/05/2011
I still go with the Norwegian model! Alberta heritage fund started in 1976, origin oil. A fund set up for current and future generations as the province used up its non-renewable resources. Annual report march 31 2011-- balance 15.2 billion. Norwegian sovereign wealth fund started in 1990,origin oil. A fund set up for current and future generations as the country used up its non-renewable resources. Amount in fund 570 billion dollars.In fact it is the largest sovereign fund outside the middle east. God I hope Saskatchewan goes with the Norwegian model!!
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Arctic AARDVARK
The answer my friend is blowing in the wind.
07:33 PM on 12/05/2011
The conservatives ideology goes something like this. Make as much money as you can at any cost, ignore the environment, use search and rescues helicopters to pick up ministers at fishing lodges, prorogue parliament when caught in a lie, lie about how you spend money at the G20, beat and imprison protesters at G20, build massive jails even when the crime rate is at an all time low, militarize the police and give them special powers, buy jets that we don't need, cut social programs, and pay people like canadastan to come on this site to troll.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
08:14 PM on 12/05/2011
How much am I getting paid, and where do I go to complain that the cheques haven't been coming in?
08:29 PM on 12/05/2011
Upstairs to your mother.
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07:30 PM on 12/05/2011
interesting article. i came to calgary in 97. i was 18 years old and had saved a few thousand dollars from odd jobs. i took and h2s course and i rented a bedroom from an older lady that i read about in one of the rags. i took the bus to nisku, and walked around town for 2 days applying at every drilling rig contractor that i could find in the phone book, finally landing at nabors drilling. that was 14 years ago. i began working by bumming rides to the rig with the other guys on my crew and once there i ate pb and jam for the first month. i have worked my way up through the ranks to become a directional driller at 32 years old and have worked all over the world. i am currently taking an online business degree to allow me to get into managment and back to the city. dont tell me it cant be done, i have systematicly moved up by sacrifice and hard work. i had no family and no friends in calgary when i first arrived. a person can achieve anything if they want it bad enough..
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HUFFPOST SUPER USER
Steve Lives
The Venus Project ... look it up
01:39 AM on 12/06/2011
Congratulations. I mean it. But that isn't the story for everyone. There are not enough jobs in the oil fields to employ everyone, contrary to CanadaStans opinion. Nor is everyone suitable for that type of employment. The "work hard and you will be rewarded" philosophy no longer flies. If it ever did.
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tnanimation
06:57 PM on 12/08/2011
Your 'CanadaStan' reference just earned you a fan.
06:53 PM on 12/05/2011
“Once we address the issues of the individuals that are confronted with challenges and need the support, and we start a broader approach toward redistribution of wealth, you start … removing incentives to create wealth overall, and removing the appropriate incentives to earn.”
- This statement sums up the ideology held by most privileged individuals. People have become so afraid to admit that social programs and "sharing" are good things. It has become such a part of culture the expect that people who are poor don't work and that is their own fault. As a Calgarian i see on a daily basis the divide this city has. In my neighbourhood, there are multi million dollar houses, and just across the street there are run down rental properties. People say Calgary is a rich city, but by taking a tour on both sides of deerfoot trail you start to question that. The gap is between those in oil and those who are not, salaries grow disproportionately and the rest of us struggle to keep up. Ask any calgarian about the stigma of having a NE or SE address.
05:51 PM on 12/05/2011
Boy I sure hope saskatchewan uses the norwegian model for its natural resources not the alberta model. Watch Amanda Langs documentary and you will see a world of difference in the two models.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
06:27 PM on 12/05/2011
Norway hasn't sent 180 billion to Ottawa...Alberta has.

Would Norway be interested in suckling quebec for a few years?
07:08 PM on 12/05/2011
Get over yourselves alberta. Other than the tar sands you only have 11% of your oil left! You are not the only game in town with oil or natural resources. You make it sound like you are the only province that has contributed to Canada and everybody else has sucked Canada dry! Sakatchewan out resources you, Newfoundland has oil, and other resources dot throughout Canada. I stand by my comment of the Norwegian model. How does it taste to kiss the republican americans butts in Calgary! And maybe Norway would enjoy suckling Quebec instead of selling their province to the republicans.
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Peacefrogg
06:31 PM on 12/05/2011
The trickle down effect works well in Alberta, the money trickles down to the top 1%, kind of like the same model in the US.
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Skookum1
truth can't be bought, but lies sure can be sold..
07:54 PM on 12/05/2011
The point of the article is that oil doesn't trickle very far....
05:03 AM on 12/06/2011
It trickles to the people who WORK for it.
You expect a cheque for sitting around whining on or HP ???
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grizzly bear55
King of the forest
05:29 PM on 12/05/2011
It must disturb many that Canada is a prosperous country with huge natural resources.

I have never seen any Canadian media outlet keeps bashing Canada like HP does.

Every day the first story in big letters, Canada is doomed.

I suppose misery loves company.
06:57 PM on 12/05/2011
Canada is one of the best places to live on earth, any Canadian will tell you how proud they are of everything Canada is. But you can't be the best without being critical of your flaws. A complacent society is dangerous to democracy.
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Skookum1
truth can't be bought, but lies sure can be sold..
07:56 PM on 12/05/2011
That's pretty funny because most of the copy in HuffPost is from CTV, Canadian Press, the Globe and Mail, and the righter-wing end of CBC.

The mainstream media in Canada are all tied closely to the resource industry. They're part of the p.r. machine that hides evil in the name of profit and "prosperity" (which means money for the rich, and either overwork or spite for everyone else).
wetcoastm
Free Speech As Dictated By Our Sponsors
03:20 PM on 12/05/2011
The comments on this article are so frustrating. It is rare to actually see a well written article discussing the issues of income disparity and yet everyone is still spouting the same line about "oh you just have to show up and get a job".

Unless you are in a specific industry the "Alberta Advantage" is not what it was 20 years ago. 20 years ago even in the slump of the 90's you could get a modest job, find a modestly priced apartment and save up to buy a home.

That is not the case anymore - could some of you guys actually read the whole article. I have been talking about this with my relatives in Calgary for years. I am in my late 30's and I would say those of us born in the seventies in the middle income bracket are the last group to have the "Alberta Advantage".

Housing prices have exploded, if you don't have a degree or a technical certification it is not that easy to climb the ladder. Things that our parents did apprenticeships for now require certification. The poor are shoveled into the NE and SE and the neighborhood where my dad bought a house on a 15 dollars per hour wage now sells houses in the millions.

Something significant has happened. It doesn't mean Calgary is not a great city, it just means that there are a lot of hard working people who are stuck at the bottom and can't get
04:32 PM on 12/05/2011
You have just confirmed everything that is being said in the comments you are disputing.

Yes, education and skill is far more common today because people realize that you need those tools to be successful­. You are complainin­g that trades need certificat­ion, well then go and get the certificat­ion. The people who are complainin­g and looking for a handout are those who are not willing to take a risk and work to better themselves­.

You come here complainin­g about the lack of opportunit­y for someone without anything to contribute and who isnt willing to change their own status quo.

There is almost always a way out of the lower class if you are willing to really try. Maybe that involves uprooting your family like the millions of immigrants who have managed to become successful in Canada. Maybe that involves taking on part time schooling to earn that extra certificat­ion like the many people who keep places like Devry in business. Maybe that involves taking a step back and examining other career opportunit­ies... Do not tell me that its too late to do any of that. My own father, who was 38 at the time and could barely speak english, started a trucking company with no credit and on a loan from a friend as our family was falling into the lower class.

There is always a way and Alberta is without a doubt the best place to do it in Canada.
wetcoastm
Free Speech As Dictated By Our Sponsors
05:00 PM on 12/05/2011
I received this comment under two different names so I will assume that this is part of your work day. So I will put this to your think tank employer.

If you prevent people from being able to pay the rent while working two jobs they can't go to school to get on the ladder.

If you ignore the growing social issues of your community they don't go away.

Poor people work as hard and sometimes harder than people who are further up the ladder.

If you don't have someone to give you the private loan how do you start? If you don't have someone to let you crash on their couch while you save enough for a damage deposit how do you start? If you don't make enough from two or three 12 dollar an hour jobs to save for that certification how do you start? No credit history? No family further up on the ladder?

As the article stated there are only so many oil and gas positions. The article is about the other portions of the community who are living with increased inflation.

Get off of your high horse and realize that there is a problem and it needs to be addressed.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
06:28 PM on 12/05/2011
What skill do you need to become a rig pig?

The only requirement I saw when I worked the rigs was to have a bit of common sense and a work ethic.
07:21 PM on 12/05/2011
You also need 5,000$ worth of training... start saving!
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Adrian31
60% of the time, it works everytime...
12:06 PM on 12/05/2011
How is this really news? Whenever there is a big boom in a particular industry, income inequality (in those areas) will naturally increase substantially.

This has little to do with the rich, middle class and poor. The oil companies in Alberta have marketed themselves well and the payoff has been tremendous. Should they not be raking in the dough with their industry booming?

I understand income inequality as I'm part of a disappearing middle class, but for anyone to bash the oil and gas companies because they're running a successful business is borderline ridiculous.
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11:52 AM on 12/05/2011
It seem like the poor wan't to be equal to the rich well let them get rich an be equal.
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11:22 AM on 12/05/2011
Work is not difficult to find in Calgary, and housing prices are cheaper than in Toronto and Vancouver. This article is more about disparity than it is poverty.
wetcoastm
Free Speech As Dictated By Our Sponsors
05:03 PM on 12/05/2011
Yes a $400,000.00 house in Calgary is cheaper than a 1,000,000.00 house in Vancouver but it is still out of reach for many. And the rental market for the city of Calgary is equivalent to the market in Vancouver - with less availability.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
06:29 PM on 12/05/2011
So why live there?
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Nihilicious
Humanist>Realist>Atheist>Nihlist
11:08 AM on 12/05/2011
Alberta is the only province with a flat tax (10%), so it stands to reason that the well to do have increasing disposable income to drive up the cost of living relative to other cities, especially on property. And witht he boom, they drive up the cost of small units as well as their own mansions, because all these developments are being used as investment vehicles with interest rates at zero and a lack of returns in traditional markets.
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sillyfrog
Pastafarian and UU student
05:39 PM on 12/05/2011
So many people think a flat tax is good for all.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
06:30 PM on 12/05/2011
It is good, it boosts the economy which is good for everyone.
Some people are too stupid or lazy to take advantage of that, but that is their choice.