Canada Income Gap: Toronto Residents' Panel Moves Beyond Talking About The Problem

Toronto Income Inequality Panel

First Posted: 02/11/2012 11:09 am Updated: 02/11/2012 11:09 am

It’s one thing to admit you have a problem, but quite another to endeavour to solve it.

Such was the formidable challenge facing a panel of 44 randomly selected Toronto residents, who participated in a pioneering initiative to tackle the city’s growing income gap.

Their recommendations, contained in a report released this week, touch on everything from transit and taxation to immigration and housing -- a crucial first step, says University of Toronto urban studies expert David Hulchanski, toward addressing the deepening rich-poor divide that his research has made plain.

“It’s a lot of work to discover the trends, but then, what to do about it?” Hulchanski told The Huffington Post at a launch event on Tuesday. “Here are 97 recommendations. They aim to be affordable, to be practical, to be down-to-earth, to be doable.”

More on income inequality at Mind The Gap: Canada's CEOs See Huge Pay Jump.. Super-Rich In Canada Now Make 189 Times Average Wage.. Government Policies Growing Less Effective At Narrowing Wage Gap.. Full Coverage..

At the top of the list: restoring in some capacity former Mayor David Miller’s controversial Transit City plan to extend rapid transit services to the distant suburbs, where a large proportion of the city’s low-income residents now live.

Despite not having seen the recommendations, city council took took a step in that direction on Wednesday, voting to reject Mayor Rob Ford’s plan to ditch the light-rail network in favour of burying the Eglinton Crosstown LRT below ground.

It was an outcome that Hulchanski predicted on Tuesday, calling the synchronicity “no coincidence.”

“[City councillors] represent Toronto, and the 44 randomly selected panellists represent Toronto, and they both came to the same conclusion,” he said. “It really bodes well for the other recommendations as well.”

This chart shows Toronto's middle-income neighbourhoods (indicated in beige) yielding to growing areas of rich (blue) and poor (red). Source: David Hulchanski, under Creative Commons licence

The nearly 100 ideas aimed at overcoming social and economic divisions are intended for policymakers from city hall to Parliament Hill: adjusting the minimum wage annually to match inflation; providing financial incentives to employers to hire immigrants and youth; maintaining existing funding for public libraries; making access to fresh groceries “an essential component of zoning and planning decisions”; and providing “more accessible and honest information to newcomers about what they can expect in Canada.”

Billed as an opportunity to “learn about the growing income gap, understand the challenges and consider the choices that we will need to make to ensure that Toronto remains a competitive, liveable, and inclusive city,” the Toronto Residents’ Panel on Household Income is being touted as the first of its kind.

A joint project of Toronto-based literary organization Diaspora Dialogues, public consultation firm MASS LBP and the University of Toronto Cities Centre, the panel consisted of 44 residents selected through a civic lottery.

Over the course of three Saturdays in November and December, they heard from experts from across the political spectrum. They were then asked to come up with their their own ideas, and deliberate the feasibility and consequences of proposed solutions to build on Hulchanski’s influential Three Cities report.

Released in November 2010, Three Cities used 35 years of data to show the extent to which Toronto’s neighbourhoods have become divided along economic lines.

The Three Cities maps, displayed in Toronto’s Urbanspace gallery on Tuesday, detail how, from 1970 to 2005, the city centre became home to a growing number of high-income earners, with low-income residents clustering in the distant outskirts. In between now lies a small -- and shrinking -- middle class.

This chart shows the change over time in income distribution among Toronto's neighbourhoods. The middle-income group is shrinking rapidly, while the rich and poor groups at either end of the wealth spectrum are growing. Source: David Hulchanski, under Creative Commons licence

Panelist Jonathan Mousley, an Ontario government worker who was drawn to the initiative by the initiative by the opportunity to brainstorm with Torontonians “from all walks of life,” says he is concerned about deepening income inequality within the city.

“There are a number of people who are doing really, really well, and that’s good, but it shouldn’t be at the cost of people who are struggling,” said the 43-year-old. “We just need as a society to really think about how we can have a little bit of a re-balancing.”

For Mousley, the most compelling recommendations pertain to restoring equality of opportunity.

“At the end of the day, we’re not asking for an equal society, but we are asking for everyone in Toronto to have a fair shake at succeeding,” he said.

WHICH CANADIAN CITIES ARE SEEING THE GREATEST GHETTOIZATION?

Percentages represent the difference that the income gap has grown between the richest and poorest neighbourhoods in Canada's largest metropolitan areas. The numbers indicate the degree to which residents of those cities are segregating themselves economically.

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  • 8: Quebec City -- 22 per cent

  • 8: Quebec City -- 22 per cent

    With a 22 per cent increase in the gap between its richest and poorest neighbourhoods, Quebec City has seen the smallest growth in neighbourhood inequality. However, the city also saw the largest proportion of neighbourhoods in decline. The numbers suggest some six in 10 neighbourhoods saw their income decline from 1980 to 2005.

  • 7: Winnipeg -- 31.5 per cent

  • 7: Winnipeg -- 31.5 per cent

    Winnipeg saw a 31.5 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 7.6 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 24 per cent.

  • 6: Montreal -- 34 per cent

  • 6: Montreal -- 34 per cent

    Montreal saw a 34 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 10 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 24 per cent. <em>Correction: An earlier version of this text misidentified Montreal as Winnipeg.</em>

  • 5: Vancouver -- 36.5 per cent

  • 5: Vancouver -- 36.5 per cent

    Vancouver saw a 36.5 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 10.5 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 26 per cent.

  • 4: Ottawa -- 37 per cent

  • 4: Ottawa -- 37 per cent

    Ottawa saw a 37 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods growing 1.3 per cent in income, while its wealthiest 10 per cent of neighbourhoods saw income grow nearly 36 per cent. Ottawa is unique in that none of its neighbourhood deciles suffered an income decline during the period.

  • 3: Edmonton -- 39 per cent

  • 3: Edmonton -- 39 per cent

    Edmonton saw a 39 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 7.8 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 31.5 per cent.

  • 2: Toronto -- 68 per cent

  • 2: Toronto -- 68 per cent

    Toronto saw a 68 per cent increase in the gap between its richest and poorest neighbourhoods from 1980 to 2005, with its poorest neighbourhoods suffering a 5.5 per cent decline, while its wealthiest 10 per cent of neighbourhoods saw income grow 62.5 per cent.

  • 1: Calgary -- 81 per cent

  • 1: Calgary -- 81 per cent

    With an 81 per cent increase in the difference between its richest and poorest neighbourhoods, Calgary wins Canada's ghettoization crown. It's worthwhile to note that Calgary's large increases in income in the wealthiest neighbourhoods has not pulled up its poorest areas, which have seen declines in income on the same scale as low-end neighbourhoods in other Canadian cities.

WHICH PROVINCES HAVE THE WIDEST INCOME GAP?

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It’s one thing to admit you have a problem, but quite another to endeavour to solve it. Such was the formidable challenge facing a panel of 44 randomly selected Toronto residents, who participate...
It’s one thing to admit you have a problem, but quite another to endeavour to solve it. Such was the formidable challenge facing a panel of 44 randomly selected Toronto residents, who participate...
 
 
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04:28 PM on 02/16/2012
This maybe also one reason why the number of homicides in Toronto is increasing over th years:: http://bit.ly/w8BD2P
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north of 60
Quando Omni Flunkus Moritati
08:50 PM on 02/12/2012
I know plenty of people with useless university degrees, unemployed­, looking for work, living with their parents, willing to take menial labor jobs if they're available. They bought into a myth, and that's just too bad.

.................gravescanada
.................Name five people you know, and the degrees they have.

Here's seven for ya:

Martin- Religion
Giselle- Film
John- English Lit
Becky- Dance
Anna- Music Therapy
Thad- Philosophy
Lisa- Art History
04:53 PM on 02/12/2012
Too many people and too few jobs......

Every country needs to balance people, jobs and resources.
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north of 60
Quando Omni Flunkus Moritati
03:42 PM on 02/12/2012
You spent most of your time in high school partying instead of studying and developing math and science skills. You went to college, partied with your friends a lot and got some liberal arts degree because your math and science skills weren't very good. Now you're competing with thousands just like you for hundreds of liberal arts degree jobs. Meanwhile the unpopular nerds who studied hard, didn't party, and got technical degrees have the good paying jobs.

You can live with your parents in Eastern Canada complaining to all your farcebook friends, writing your blog, and twittering your inconsequential thoughts to people who don't care, or you can get up off your lazy a55 and move to Western Canada and get a real job. The choice is yours.
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JBSCanada
They paved Paradise and put up a parking lot!
03:19 AM on 02/13/2012
Where do you get this stuff from?

It's the worst case of projecting on other people - without the benefit of any facts at all, that I have seen.

Get back on those meds!
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north of 60
Quando Omni Flunkus Moritati
05:02 AM on 02/13/2012
Truth hurts, eh? Life in mom's basement must be pretty good, why change?
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Quando Omni Flunkus Moritati
02:57 PM on 02/12/2012
TOP 10 PERCENT pays 53 percent of income tax received by the Canadian federal government

BOTTOM 90 PERCENT of society in Canada pay 47 percent of all income tax received

The top 30 percent of families earned 60 percent of all income in Canada and paid 66 percent of all taxes.

The bottom 30 percent earned 8 percent of all income and paid 4 percent of all taxes.

High-income earners pay more in taxes than their relative share of income would predict.
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JBSCanada
They paved Paradise and put up a parking lot!
03:21 AM on 02/13/2012
How about some links to prove all this?

It's just a bunch of assertions by a non-peer reviewed persona on a comment form.

Your comment is not worth the paper it's not written on.
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north of 60
Quando Omni Flunkus Moritati
08:44 AM on 02/13/2012
If you know how to use Google you can find it for yourself. It's not my role to do your research.
06:30 AM on 02/14/2012
So if your figures are correct, and the trend is towards lower salaries and lower corporate taxes , then the top 10 percent will be paying a higher percentage of the income taxes in the future and the bottom 90 percent will be paying less . So why would any intelligent person not want this trend to go the other way .
02:27 PM on 02/12/2012
I guess I got moderated out due to the suggestion that the increase in the gap may be due to the large increase in 3rd world immigrants since the 1970's. Shsh...Talk about open discussion! Lord help me if u knew that I don't ascribe to man-made global warming either. I'm a heretic to this M.Moore adoring crowd. Have you people read 1984?
01:05 PM on 02/12/2012
I do do something. I give the equivalent of half my property taxes to the Sally Ann food bank. I help the first grade class which is the poorest in my city. AND I HAVE NEVER VOTED FOR HARPER. Not voting for the man who opposes debate and a free press (three questions only are alowed) supports destruction of the environment, cozies up to china and takes money from the poor and the elderly and the young so he can build prisons and buy jets that don't work and cost a fortune plus build naval vessels plus buy army vehicles from France. I actively work against any government which wants to inflict its religious beliefs on the people
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SimonLeigh
10:33 AM on 02/12/2012
TAX THE RICH! Why is this so hard to do?
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Quando Omni Flunkus Moritati
03:51 PM on 02/12/2012
The richest 10% already pay most of the income tax revenue [more than 50%] that pays for all those 'free' benefits you think you're entitled to. Keep squeezing and they'll take their money and the jobs it creates and go somewhere else. You don't increase egg production by choking the chickens.
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SimonLeigh
05:59 PM on 02/12/2012
Percentage-wise they pay less, not more. You don't increase egg production if the farmer keeps nine eggs for every one he puts on the market.
08:28 AM on 02/12/2012
wow,really grabs the bull by the horns as we used to say......i'm wondering if we may include our age in our rants &raves views?????it would be interesting to me to see the different ages of our replies ..mine 70
01:28 AM on 02/12/2012
All income redistribution does is make rich people poorer rather than poor people richer. Rather than complaining that rich people have too many slices of the pie, let's just make the pie larger.
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JBSCanada
They paved Paradise and put up a parking lot!
02:27 AM on 02/12/2012
We are agreed on that canadianconservative!

But do you agree that the wealthy should pay tax? And if so, should it be fair, ie: no loopholes or never a no-tax situation for those earning over $100,000 per year? It happens often!

Best Regards, JBS
10:34 AM on 02/12/2012
Completely agree! If the poor can't have loopholes, neither should the rich. A true flat tax would take care of that!
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gravescanada
08:18 AM on 02/12/2012
Your idea would work if employers realized that when you pay a decent wage you get a damn good employee, and when you pay minimum wage or just above, the employee will not feel vested in the company. They will feel replaceable and unappreciated. Just look at Tim Horton's. If they raised the cost of their coffee 5 cents a cup they could pay their permanent full time workers a living wage as long as the 5 cent per cut goes to employee pay. Instead, these things typically go to add to the quarterly profits.
10:40 AM on 02/12/2012
I'm not a fan of a living wage in that it is subject to the discretion of the govt to what constitutes a standard of living.

If you have a progressive in power, the 'standard of living' would be high and employers would be required to kick in more money, thereby increasing prices of their product, thereby interrupting the free market system.

Why not let the free market decide? Look at Northern Alberta. The money is flowing there because of the oil sands and a Tim Horton's employee makes $18-20 per hour. Communities such as Ft McMurray is growing so fast, they have to offer high wages to attract workers from all over the country.

That's the free market working.
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JBSCanada
They paved Paradise and put up a parking lot!
12:26 AM on 02/12/2012
'Bang for the buck' - the best way to help poverty-stricken adults is to stop charging federal income tax (or provincial income tax) on those tax-filers earning less than $25,000 per year.

What those people pay to federal and provincial income tax is a large percentage of their yearly income.

Income taxes in total paid by this low-income group ARE a major cost for those individuals and their families - but conversely, is NOT that much revenue for the federal government - as a percentage of it's income tax revenue stream.

In other words, the government could easily do without that income tax revenue, but it would dramatically assist poverty-stricken Canadian adults and their families.

It is something that could be done as soon as the next federal budget.

To make up for the missing income tax revenue that these people pay, the government could increase the income tax rate by 1% for those tax-filers earning more than $100,000 per year. It would more than cover it.

Seem fair?

http://johnbrianshannon.com
01:23 AM on 02/12/2012
No. Whatever happened to everyone pays their fair shair? Everyone. Even if it's a small amount, anyone making a wage should pay some sort of income tax.

It's the poor who use the safety net which comes from our tax dollars. They should at least contribute, no matter how small.
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JBSCanada
They paved Paradise and put up a parking lot!
02:20 AM on 02/12/2012
I'd say the poor are paying their fair share already. Not only do they pay income tax, they have paid all manner of taxes their entire life - school taxes, property tax, excise taxes, provincial sales tax, gas tax, municipal transit levy, HST and hundreds of other government taxes and fees.

Wikipedia says this: "However, a study conducted by Canadian Centre for Policy Alternatives, and released on November 8, 2007, found that the richest pay the lowest rates of all income groups.[1]"

http://en.wikipedia.org/wiki/Taxation_in_Canada

In addition, the poor, just like everyone else are paying for the bad decisions of various governments over the decades. Billions of dollars have been wasted, blown, or left the country for unexplained or poorly-explained reasons.

Regards, JBS
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JBSCanada
They paved Paradise and put up a parking lot!
02:22 AM on 02/12/2012
IF you were a real conservative ;) you would say that all income taxes are a bad thing and should be abolished.

Wikipedia says this on the topic: "The First World War had mostly been financed by traditional means, but in 1917, a tax on income was introduced as a temporary measure to fund the war. The income tax has since become a permanent feature of the Canadian tax system." ... "However, a study conducted by Canadian Centre for Policy Alternatives, and released on November 8, 2007, found that the richest pay the lowest rates of all income groups.[1]"

http://en.wikipedia.org/wiki/Taxation_in_Canada

Funnily enough it was a Conservative Prime Minister who introduced this "temporary income tax" to Canadians.

"The Right Honourable Sir Robert Laird Borden

Time served as PM:
10 October 1911 - 12 October 1917
12 October 1917 - 10 July 1920

Notes:

Conservative
Leader of Canada during World War I (War Measures Act 1914, Income War Tax Act 1917, Military Service Act 1917)
Principle Author of Resolution IX of the 1917 Imperial War Conference
Leader of Canadian Delegation at the Paris Peace Conference 1919"

http://www.thecanadapage.org/PrimeMinisters.htm

So, all of us are paying our fair share - and as quoted from Wikipedia and the Canadian Centre for Policy Alternatives, the richest Canadian's pay the lowest income tax rates. Which means the poor are paying proportionately more than their fair share of income taxes.

Just thought you should know.

Regards, JBS
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Gathled
I am an extreme moderate...
11:48 PM on 02/11/2012
I really think that the mayor of Vancouver is going to have to look into making housing more affordable. I think its sad that a person like myself who was born in Vancouver doesn't have much of a chance to buy in the city. At least make it easier for actual people who grew up there. The rest of you from elsewhere in Canada can live in Surrey! :P
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Quando Omni Flunkus Moritati
11:43 PM on 02/11/2012
Do something about income inequality:

Get some education and get a job !!!
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JBSCanada
They paved Paradise and put up a parking lot!
11:57 PM on 02/11/2012
What about those who have a university education and still can't find a job?

Those degrees hanging on the wall do not magically spurt money!

Get educated about income-inequality, read my blog.

http://jbscanada.net/2012/01/02/no-need-for-occupy-in-canada-they-say-2/

Regards, JBS
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Steve Lives
The Venus Project ... look it up
12:46 AM on 02/12/2012
That's a good read John. But I would say what you are proposing is impossible with in the confines of the monetary system. How would you implement these ideas in a world awash in debt? IMO the only way out is a Resource Based Economy, and the abandonment of money. I admit it would be tough for us at first, because of our current value set, but future generations would look back at us and wonder what the hell we were thinking. I don't know if you are aware of Jacque Fresco and the Venus Project, if you aren't, you should take some time out (seems you are a busy guy :) and investigate it. Also, Peter Joseph and the Zeitgeist Movement.
Zeitgeist Moving Forward is a good movie to watch (google it, its free online) and explains the project fairly well.
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Quando Omni Flunkus Moritati
02:23 AM on 02/12/2012
Now that perfectly illustrates the point I made.
An intelligent person would have realized that 'Get some education and get a job' obviously means get an education that will get you a job.
All those with university degrees in unmarketable skills, were not very smart, and that's why the only jobs they can get involve asking "do you want fries with that?"

Do some research, find out what jobs are under-filled. In most cases they're skilled trades jobs. People with skills in trades seldom go unemployed, if they're willing to go where the work is.

If you're smart you'll get an education to develop a skill that's valuable enough that you can pick and choose which jobs you like best.

Find a job you love and the money becomes an incidental side benefit and you'll always have enough to life comfortably.

Our society's quest for 'success' has created a whole class of idiots with useless university degrees living in their mom's basement, playing on their computers, thinking they're somehow entitled to 'income equality'. Good luck with that.
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waldopepper
I'd tell you all about me if you were my friend.
01:10 AM on 02/12/2012
Another proud Harper voter.
09:57 PM on 02/11/2012
We need to move to a more sustainable model.

Population, jobs and resources need to be in balance.

Too many people and too few jobs means poverty, suffering and despair for those left without.
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Stroodle
@upcripplecreek
11:27 PM on 02/11/2012
You just repeated what the article said.
08:46 PM on 02/11/2012
This is a joke. Matching minimum wage to inflation? How do you suppose you might accomplish that in practicality... The poverty line wage in Canada is about $18-20 hr/FT, the inflation stats are highly manipulated to the low side. Maintaining library funding? Sure, that is the solution. The TRP will accomplish very little in reality.

The primary driver of economic disparity is central banking policies- ie., the Bank of Canada which is under the direct order of the global private central banking cartel (the criminal elite). So in the last 10 years, this is due to ultra-low emergency interest rates. Those with income get access to much more cheap money which blows apart the concept of saving and promotes a culture of materialism, consumerism, and have and have nots. Members of parliament cannot even influence the decisions the corrupt elite banking class make, in fact they are blindly there to support it.