While many call for more drilling and oil exploration, the world simply doesn’t have the capacity to keep up with demand.
Despite requests from U.S. presidents, OPEC has not been able to meet the supply demands. High oil prices don’t just impact us at the pump, but the previous price of $147 a barrel brought global economic growth to a halt and contributed to a banking collapse felt worldwide.
He blames Libya, but it’s much more than that. If it were that simple, releasing oil from the reserve would make sense, just as it did after hurricanes Katrina and Ike.
This time the problem is that oil prices were higher than $100 before the fighting started in Libya, and global demand was already in excess of a record 87 million barrels a day. The fact is the world is running low on oil and we haven’t been able to find the capacity to meet the demand. The U.S. military recently expressed concerns that we could see a precipitous decline in worldwide production by 2015. England is looking at gas rationing as soon as 2020.
Despite what some write, the planet isn’t out of oil; we have just taken all the easy-to-get-at oil.
From now on, we will be spending more to reach harder-to-get oil while depleting reserves elsewhere.
A perfect example is the Alberta oilsands, which were not feasible at $20 but now are attracting billions in investments. Yes, we have reserves, but they are expensive to extract.
The good news is that Canada is a global exporter of crude oil. Like many other Canadian provinces throughout history, Alberta’s willingness to scar its natural landscape in the pursuit of resources will ensure there is significant oil for us for years to come. The bad news is that we both sell crude at world market prices, and 60 per cent goes to the United States.
Under NAFTA rules we can increase production; we just can’t stop shipping to the U.S. what’s already agreed upon. In other words, we export the bitumen, give the profits to foreign investors and then get to purchase the refined products. I am not sure that was thought out particularly well.
Saskatchewan has oil reserves – not enough to get invited to OPEC, but more than a billion barrels in the ground in active wells. But the proceeds are sold at market rates, so the scarcity in the world supply will mean tougher times for Saskatchewan residents even if it’s our own oil we are buying.
How much tougher? It affects different demographics differently. For some it will mean no more cheap golf weekends in Las Vegas. For others it means that they can’t put food on their plate or drive to work.
In 2008 Saskatoon saw rents skyrocket and food prices increase significantly. The shelter where I work has a food program largely paid for by the provincial government. It was designed to help families who had more month than they had pay check. In 2007, it served around 40,000 meals a year. In 2008, that number doubled. In 2009 and since then, it has served more than 100,000 meals a year.
A lot of the problem was high rent, but much of it was rising food prices. People kept saying apologetically, "I just can’t make it anymore." That was at $140 a barrel. What’s it going to be like at $200 a barrel?
Every city in North America is in this situation. Designed and conceptualized when fuel was cheap, we built this city to drive in. Circle Drive surrounds us (kind of); Idylwyld, 22nd Street and Eighth Street cut through us.
We have several functioning bridges at any given time. In some ways, at the moment when it feels like we got the answers right, oil and energy prices could change the picture fundamentally.
The good news is that we aren’t the first city that has had to face a reinvention moment. The bad news is not many handled it correctly.
Tomorrow I woke up to a steady stream of email and tweets coming into my Blackberry about my first column appearing today in The StarPhoenix.Â Itâ€™s an introductory column so there wasnâ€™t a lot of original research put into it (I knew the topic pretty well).Â While today the column appeared on A3, it is moving to the Forum for itâ€™s regular rotation.Â As a friend joked, â€œYouâ€™ve been demoted and pushed back already.Â In a month youâ€™ll be in the Classified ads.â€
Writing for print is a lot different than writing online.Â Word Limits and a lack of hyperlinks.Â Regular readers of this site know I tend to ramble on and on and on.Â I can turn something better said on Twitter into 1000 words with no problem and thatâ€™s not a virtue.Â That has been dealt with by giving a limit on the number of words which means that literally hundreds of passive unnecessary words will be stripped from the article before you get a chance to read it.Â As Martha Stewart says, â€œThatâ€™s a good thing.â€
The second issue is the lack of footnotes and hyperlinks to document what I say.Â That is a big issue for me because while I have strong opinions, I like to believe they come from fact and an honest search for the truth.Â For right now, each column will be greeted with a background sidebar here.Â It will have links to sources, more information, and even dissenting opinions that I used to create the column.Â While you will make up your own mind regardless of what I say, hopefully this will make that a little easier.
Some of the email and comments I got in this morning asked about my political leanings.Â I donâ€™t know which way I lean.Â I donâ€™t know if I am right wing or left wing anymore and to be honest, I grow tired of populist politicians.Â I grew up as a Red Tory but I lost my partisanship (and I think my party) along the way.Â I wish I could be to the left or the right of where I am as I think it would make for quicker writing, the ability to dismiss my critics with a label, and I am pretty sure both Heather Mallick and Ezra Levant both make more money than I do.Â I do enjoy politics.Â On my staff and among my friends I have partisans on both sides of where I am at.Â It makes for great discussions but in the end I find myself somewhere in the middle.Â Like I said, I care more about policy then I do politics.Â More than a political ideology, I have been influenced by several thinkers, James Howard Kunstler, Steven Johnson, Malcolm Gladwell, David Simon/Ed Burns and Thomas Homer-Dixon. While they all look at the world in a different way, the one thing they have in common is their ability to dissect and take apart an issue in their search for understanding.Â Thatâ€™s what I hope to do.
Before it gets swallowed up by the PostMedia server where many articles go to die, Iâ€™ll archive it here.
The StarPhoenix is introducing a new columnist, Jordon Cooper. He writes about urban issues, public policy and its impact on the lives of those at the margins of society. He wasn’t born in Saskatoon but was raised here. He is the residential coordinator for The Salvation Army Community Services. His column will usually appear on the Forum page.
I was in Starbucks trying to figure out how they make their coffee so hot and still have it remain liquid when I got the offer to write this column for The StarPhoenix. When discussing my first column, it was suggested I introduce myself to the masses, something that is more awkward to do than one would think. I guess I could have refused but it’s not as if I have a volume of columns or vast fame to fall back on. My name recognition is even lower than that guy who runs the Saskatchewan Liberal party.
Some quick research shows that I moved here in 1984 from Calgary and with the exception of one year, I have lived here. It pains me to write this, but I do make Sarah Palin look well-travelled (and I didn’t even have to protect the United States from Soviet attack). For the last five years I have been employed by The Salvation Army Community Services. I have worked at a couple of different positions there and am currently the men’s residential co-ordinator, which means that I coordinate the team of people who keep the men’s shelter open and functioning. They are also the staff who provide front-line support and monitoring of The Salvation Army’s halfway house – which is not nearly as exciting as it seems. From midnight until the Ministry of Social Services awakens from its nightly slumber at 8 a.m., they provide emergency support to those in crisis.
During that time we have seen some crazy things: Dial-a-dopes, a couple having sex in the middle of Avenue C South when it was -30 C; letting one guy bring his half-dog, half-toothless coyote into the shelter to get her and her owner off the street (the centre has no policy that prohibits toothless coyotes from staying here). There have been the stories that stick with you; the prostitutes beaten up by johns who come in during the night – they aren’t looking for medical help but for assistance in getting their money back (outside of our mandate); the teen girls working the streets during school break because of a lack of food; a mother prostituting out her mentally impaired daughter, listening on one end of the phone to a girl being beaten by her mother and her boyfriend on the other end. There is also the insane loss in human potential that comes from children using drugs at a young age and seeing their emotional development stop forever.
When I go home at the end of the day, I often have more questions than answers about the system and how it affects the people who rely on it. It’s not just the social safety net that I have questions about; it is the larger context of the city we call home and the planet that shapes us. As Thomas Friedman put it in the June 7 New York Times, we are at a point “when food prices spiked, energy prices soared, world population surged, tornadoes plowed through cities, floods and droughts set records, populations were displaced and governments were threatened by the confluence of it all – and ask ourselves: what were we thinking? How did we not panic when the evidence was so obvious that we’d crossed some growth/ climate/natural resource/ population red lines all at once?” While I silently grumble as I fill my car with fuel and I notice that my beloved three-cheese Kraft Dinner is a little more expensive this week than it was last week, the changes that we are seeing globally have a much more dramatic impact on those who have no margins in their lives and that’s going to be the most significant challenge we have as a society going forward. Handle it right, and we see a vast opportunity for prosperity for all of us. Handle it incorrectly, and we start to look more and more like a Detroit or a Buffalo, N.Y.
In the end, I want to talk about policy, not politics. I enjoy the theatre we call question period as much as anyone, but others do a good job of talking about that. I want to tackle some of the big-picture changes that will affect our daily lives and what we can do about them.
For a decade now I have been exploring different ideas online. Writing online makes it easier to point to other ideas and sources. The problem with print is that you can click all you want on the paper edition of The StarPhoenix and it isn’t taking you anywhere. If you want to read more, check my sources for yourself or discuss anything I write further, you can track it down at www.jordoncooper.com or find me at twitter.com/ jordoncooper.
"Like slavery and apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings." Nelson Mandela
This is the third in a series on poverty, homelessness, and a concentration of services in Saskatoonâ€™s inner city. You can find part 1 and part 2 in the archives.
Poverty in Saskatoon
Poverty looks different in different cities. In North American where food costs are more or less similar, you have five factors that influence where you are in relation to the the poverty line that I am going to look at.
Saskatoon does have high rent. A one bedroom apartment on the east side of the city will run you $1000/month. While there are cheaper apartments, most of those are located in the cityâ€™s core neighbourhoods. As housing prices have doubled and tripled, rents have done the same. A quick survey of friends who are renting often described at least a $100/month rental increase last January 1st with a notice of another one coming this January 1st. $200/month increase over one year is very difficult for any family no matter where you are in the economic spectrum.
While Saskatoon Transit does a good job (unless we have had snow or you want to get to the airport), Saskatoon is a city based on freeways and driving. While some American cities like Boston have been shaped by their subways, Saskatoon has been shaped by our cars which means that city attractions and commercial districts are shaped by parking, not ease of access for public access. The Ministry of Social Services has made it easier for itâ€™s clients to get around by making available bus passes for $20/month. A regular adult bus pass is $71.00 and a single trip ticket is $2.75 which seems high but when compared to rates in New York, Boston, or Toronto, itâ€™s about the same.
So Saskatoon has reasonably priced transportation, SaskEnergy does a decent job of hedging natural gas prices to keep our natural gas rates stable rather than fluctuating and food prices are what they are. While we may not like the idea of Wal-Mart dominating the world, their entrance into Saskatoon does keep food prices lower (and makes it even harder for downtown grocery stores to compete). One factor with food prices that gets overlooked is accessibility to reasonably priced food. While Wal-Mart may have the best price on a block of cheese in town, if it costs you a lot to get there, it doesnâ€™t help. Iâ€™ll talk some more about this in a moment.
While family income trends tell us about how many people in Saskatchewan are doing in absolute terms, it is important to examine the ability of the income to provide a reasonable quality of life. Statistics Canadaâ€™s Low Income Cut-Offs (LICOs) are widely used to measure poverty in Canada (Statistics Canada, 2006b; Canadian Council on Social Development, n.d.). Statistics Canada (2006c) defines the LICO as the income level at which a family spends 20% more of their income on food, shelter, and clothing than the average family of a comparable size. In 2005, the after-tax LICO was $22,069 per year for a family of three living in a community of 100,000 to 499,999 people and $27,532 per year for a family of four (Statistics Canada, 2006c). In the same year, the poverty line for families in rural areas was $17,071 for a three-person family and $21,296 for a four-person family (Statistics Canada, 2006c). At incomes at or below LICO levels, Saskatchewan residents are using substantially more of their available income to acquire the basics of life compared to their fellow citizens.
CUISR went out and created a snapshot of what low income families in Saskatchewan look like.
Saskatchewanâ€™s Aboriginal citizens and families are consistently overrepresented in low income indicators. Although Aboriginal people have made significant gains in the last 20 years compared to other provincial groups, Statistics Canadaâ€™s 2006 Census data indicate that 37% of Saskatchewanâ€™s Aboriginal population was living at or below the LICO (Statistics Canada, 2008a) and Canadian Council on Social Development, n.d.). While this represented a large improvement of 16 percentage points relative to the 1996 Census, Aboriginal peoples continue to experience a much higher poverty level when compared to all persons in Saskatchewan.
When looking at the income levels for people on Social Services CUISR found this
When examining Saskatchewanâ€™s social assistance incomes, an overall decrease in the last decade is evident. Between 1996 and 2005, social assistance incomes eroded in real terms among all recipient groups, by more than 7%; the welfare incomes of people with disabilities on social assistance experienced the greatest drop (by 15.5%).
It should be noted that Saskatchewan raised its social assistance rates in 2008; currently, a single employable person in Saskatoon or Regina would qualify for a benefit of about $8,000 (See Appendix II).
At the end of the day the average Canadian single mother who is below the poverty line is below it by about $7500. When people talk about people living below the poverty line, they are not missing it by a dollar or two.
In my last post, I showed income breakdowns for Saskatoonâ€™s core neighbourhoods. To recap there are 1726 households trying to love on under $15,000 a year and another 1567 households trying to get by under $30,000 a year? Of those families, a staggering 780 of them are trying to get by on under $10,000 per year. How do they live?
Many of the householdâ€™s living under $15,000 a year are either on Social Services, struggling by on part time employment or on Social Services (either SAP or TEA). If you are living on Social Services, your income is going to be a lot less than $15,000/year. Check out the current Social Services rate card and do the math on how little money that is.
As the Social Services Rate Card shows, you see that there is around $459 for rent (more on that later) and $255 to cover food, toiletries, clothes, bills, and others. That isnâ€™t a lot of money but it wasnâ€™t until I had it broken down for me by a budget management worker that I realized how little it was.
Months ago I had some staff break down the Social Services rate card. With the new womenâ€™s shelter coming online soon, I wanted them to come up with a move out formula that would actually work. Since many of the men and women we deal with are defined as â€œunemployableâ€ by Social Services, we needed to help them find a way to live within that financial framework. We couldnâ€™t find a way of making it in the slightest without using services provided by the Saskatoon Food Bank, the Friendship Inn, and the Salvation Army. As I reviewed our notes the other day, I saw that we didnâ€™t take into consideration tobacco consumption which makes a really tough financial situation even worse. Here is what we learnedâ€¦
Impact of Housing Costs
If you are single you have $255 a month after your rent (or most of it) is paid. If you have health concerns like diabetes or a disease like HIV, you get more to cover proper nutrition. That doesnâ€™t sound that bad. I have had three different budget management workers/trustees from different agencies have told me that one can live on that amount as long as the person doesnâ€™t make a single mistake. That amount includes a discounted bus pass and free Leisure Card and your rent is paidâ€¦ that is if you can somewhere to rent for your allocated amount. Now now problems start.
You can technically live anywhere in town (and therefore leave the inner city behind) but you have some problems. First of all there is the Rental Supplement which you have to qualify for and in todayâ€™s rental market you need the Rental Supplement. To qualify for the Rental Supplement, your location in the city (in part) determines whether or not you get it and how much you get. The reality is that if you are living in Riversdale, Pleasant Hill, and areas closer to St. Paulâ€™s or another hospital, increases your chances to get the supplement. Now if you donâ€™t qualify, you need have pay the difference from your personal allowance. This is going to increase your need on services like the Saskatoon Food Bank, The Salvation Army Community Services, Friendship Inn, and other agencies which actually encourages you to live in walking distance to them. Of course even if you do find a place that rents to you, the Ministry of Social Services letter of guarantee is only for the amount of money that you are allowed for housing, which means that you have to come up with the rest in cash to cover your damage deposit. The current system actually encourages a concentration of services and poverty.
Even if you can afford to move into a different part of town, the landlords may not want you there. A client I helped find an apartment for was charged a $50 â€œviewing feeâ€ to see an apartment. I havenâ€™t met anyone yet who didnâ€™t see that as an attempt to keep people receiving Social Service benefits from seeing the building. Over a period of three or four months, this client, myself, and another social worker was stood up numerous times by landlords on viewings, largely because the client was on Social Services. I was there when the client was told to his face that they â€œprobably wonâ€™t rent to someone on welfareâ€. We had some staff from AIDS Saskatoon in a while ago talking to our staff and we also learned that some landlords are doing a kind of credit check on clients to decide if the client can â€œaffordâ€ the apartment. I was shocked but itâ€™s a story we have heard lots since then. Are any of us surprised that their formula disqualifies low income/Social Services clients? Of course not all landlords are like that. I have met some wonderful ones who are all over the city. In fact the client who I was talking about was helped by a landlord who went out of their way to get this client and family into their apartment because they saw it as the right thing to do. Yet on the other hand we are kidding ourselves if we donâ€™t think that there are some Donald Sterlingesqe landlords out there who are making it very tough on people because of race or class in the city. (if you got the Donald Sterling reference without clicking on the link, I am impressed).
Of course moving in only part of the journey. I was also shocked to find out there are no more move in grants. No money for beds, mop, broom, cleaning supplies, SHOWER CURTAIN, pots and pans. I have access to the donations given to the Salvation Army Community Services (we have a dock for a reason) and all of that was free but even after all of that was said and done, Wendy and I dropped $100 of our own money for essentials and believe me, there was nothing on that list that all of us would not consider an essential.
To be fair there is another alternative to move in grants, if you are on Social Services, you can apply for a twice a year advance of $240 and that would help them set up an apartment but that money comes off their check $40 a month over six months (which takes down the $255/month to $215/month). If for some reason you donâ€™t qualify for the Rental Supplement, you have to pay the difference in rent out of your personal living allowance. Your $255 can quickly become $100. One budget management worker I talked to told me that she practically begs her clients not to take this $240 â€œwindfallâ€ because of the financial problems it can cause later on for them.
Eating Right on Social Services
So you have $255 (or $215 or $100) each month (now there are extra resources if you have selected medical issues) which is anywhere from $53 to $65 (or $25) per week for groceries, hygiene products, and clothes. That causes itâ€™s own problems because where do you get that stuff in Riversdale/Pleasant Hill? There are no low priced grocery stores in easy walking distance (although there is now one downtown and a small Asian food store on 20h) which makes it difficult to get ahead because you donâ€™t have the resources to buy anything in bulk or take advantage of savings at Costco, Real Canadian Wholesale Club or even Co-opâ€™s big case lot sale? Again you have a lack of financial margin and you have a lack of accessibility to do purchases like this. While Saskatoon has a whole has more vehicles than residents,according to 2006 census data the core neighborhoods have 0.4 cars per person. When I worked at 33rd Street Safeway, once a month we saw a steady stream of cabs pulling up as people on Social Services bought groceries. You have two problems with that happening. A small grocery amount is made a lot smaller by having to take a cab to Safeway (or Supertore/Walmart/Extra Foods/Sobeys) for groceries and you have that money leaving the area (and area that is in need of that money). An even worse decision is those who do their grocery stopping at a convenience store. A couple of times when I worked the 4-12 shift at the Salvation Army, I would run low on change which makes it hard for the front desk to make change for clients who come in and buy breakfast (best $3 breakfast in the city). Once I stopped by a convenience store on the day checks were handed out. I honestly thought a riot had gone through the store. It wasnâ€™t, it was people purchasing groceries. I canâ€™t think of a quicker way to make an already small check, even smaller. Thankfully this has changed somewhat since Giant Tiger came to town but you still have no fresh fruit and vegetables. While I probably could have lived on Giant Tigerâ€™s selection when I was single (Kraft Dinner, Ichiban noodles, Pizza Popsâ€¦ repeat), it is lacking a lot of stuff that families need and there isnâ€™t the money left over to even purchase a Good Food Box from CHEP.
The other part of the equation that food is a commodity and therefore subject to price fluctuations and is really sensitive to other commodity prices, such as oil. All of this is explained in detail in Why Your World Is About to Get a Whole Lot Smaller by Jeff Rubin and The Long Emergency by James Kunstler who point out the impact that higher oil prices have on farm input costs. As oil goes up, so does fuel for machineries, cost of fertilizers, and more crops get moved from being a food crop and become a fuel crop for ethanol (unlike Brazil which had the foresight not to use a food crop for ethanol, we decided to use corn and maize here, largely in deference to the importance that Iowa places in Presidential primaries). The basic math is higher energy prices equals higher food prices.
Three years ago when gas prices spiked to abnormally high prices we saw the impact on our clientele at work. We went from about 60,000 served meals a year to close to 100,000 meals served a year. Not only were people hit hard by rising energy prices, they were hit hard by the increase in food prices. All around the city you saw charts in restaurants explaining why their prices were going up and why they had to charge more to bring in some more revenue to pay for it. The same thing happened here but the people who used our services didnâ€™t have the option of increasing revenue. We just did an in house survey of why people come to the Salvation Army meal program and the dominant answer given was, â€œno food at homeâ€ and this is a program designed for people who are not receiving benefits from the Ministry of Social Services (and therefore hopefully have more resources). I wish we had done one a couple of years ago. I assume the numbers would have been much, much, higher.
The Lack of Discretionary Income
So even if you have money for food and rent, there are still other expensesâ€¦ like laundry is another big issue. You get $10 if you are single for laundry and soap and $20 if you are a family. The problem is that a lot of apartments charge $3 for a load and in case you havenâ€™t noticed, there are not a lot of laundromats in town. When we were looking at countless duplexes and fourplexes while trying to find a place for the Mumford House, many houses had a bed room filled five or six feet high full of clothes. That same summer I joined a co-worker to check out a house that had been set on fire (she didnâ€™t want to get punched in the face by the landlord so she brought me along to get punched in the face â€“ luckily for my face, he was pretty cool and not prone to violence). Again in the basement there was clothes piled high enough that neither one us could walk upright down there. Later it finally clicked in that it was cheaper to come to the Salvation Army or the Food Bank every couple of weeks and just get different clothes rather than doing laundry. Anything to save some money.
My point is that, you can make it as long as you donâ€™t make a mistake which in the end, is the Government of Saskatchewanâ€™s goal. Coming up with Social Services rates is tricky business. If you set the amount too low, people just canâ€™t live but if you have too high of an amount, it discourages people from working and you can really upset voters. In the end you get stuck with the number that we have now. Just barely enough for someone to live and definitely not comfortably.
This takes a toll not only on individuals but also on a community if in high enough concentration.
As for the family, I understand a bit of that. My mom raised a family of four of us on $1350 a month plus what we got for Family Allowance. $700 of that was mortgage and the rest was just paying for life. From 1988-89, we kind of totally disengaged from society because we had no money at all. We didnâ€™t go out, we didnâ€™t take weekend trips, we didnâ€™t do anything. There was just no money. We were involved in the church but even things like youth group took money and so I didnâ€™t attend those weeks. Our summer vacation consisted of a trip to a used bookstore on Primrose Drive. They sold a two cubic foot box of books for $1. There was a bunch of Harlequin Books but there was other cool stuff as wellâ€¦ university textbooks, Instant Replay by Jerry Kramer, The Game by Ken Dryden and The Winds of War by Herman Wouk. We went three times and our expenditures outside of bills that summer was a total of $3. That was it. That was all of the extra money we had. I find myself looking back it with some nostalgia but it was a horrible summer and a part of a grind that went on and on and on.
It isnâ€™t just one single thing that poverty does, it just grinds you down day by day by day. My mother was diabetic and living under that kind of financial stress does not lend itself to eating well. She started a downward spiral that took her leg and later contributed to her inability to fight the cancer. Diabetes is called a â€œdisease of povertyâ€ and as a Type II diabetic I understand that now more than I ever did then. On top of the food that is diabetic friendly (which isnâ€™t cheap), I now spend $100/month to control the nerve pain. Neuragen and Alpha Lipolic acid arenâ€™t covered by the Saskatchewan Drug Plan (while highly addictiveOxycontin which does nothing for the pain was covered). Poor quality food, inadequate diabetic care, and enormous stress. I didnâ€™t realize it at the time but in a lot of ways, those years changed all of us for the worse. We withdrew from our community, our friends, and an edge developed that has probably stuck with me for far too long. There wasnâ€™t one thing that did it, we just got ground down and that was only a couple of years of it.
We have seen the impact on poverty on an entire region. One of the most enjoyable things I had the opportunity to do while as the pastor of Lakeland Church in Spiritwood was listening to some of the older members of the church tell their stories of the Great Depression. Those stories all started light hearted and funny and then turned serious and sombre as the years took their tool and the stories got darker. Donâ€™t take my word for it, read Pierre Bertonâ€™s book, The Great Depression and read the stories yourself. If you are looking for a current version of it, read this eye opening series called The New Poor in the New York Times.
Gang activity is commonplace among disadvantaged minority groups including Afro-American, Hispanic and aboriginal groups. They are drawn together by a sense of race, protection and shared experience. When the economic and social doors are closed or hard to open, people tend to turn to illegal activity as a quick fix. Couple this with drug and alcohol addiction and you have the recipe for young people to group together in gangs.
Gang life is hard with few real rewards. Recruiters let the uninitiated think that in a gang they will get the iPod, the fancy car and other status symbols. Gang activities include violence, robbery, prostitution and drug dealing. In the end the reality is nothing compared to the dream presented by the gang recruiters.
When gang members reach their late 20s they have no education or work experience, they have rap sheets as long as their arms and they most likely have a drug problem. They are burned out and unemployable.
And those are the lucky ones. Some will be killed and still others will do life for murder or other long stretches for their crimes. The dream of the 15-year-old for power and wealth is gone and it never existed.
One of the things that have bothered me as I read The Life and Death of the American City by urban theorist Jane Jacobs is that she speaks of a strong neighbourhood bond is needed to maintain safety and prosperity in a community. I kept wondered what happened to it in parts of Saskatoon. The answer is found in bits and pieces in a variety of books I read this summer (at the end of this series Iâ€™ll post a reading list if you want to read more) but the short answer is that poverty grinds away those ties that keep a community together, especially when poverty is concentrated. (which I think is at the core of what Pat Lorje is saying and something Iâ€™ll spend some time exploring when I post the next post in this series Monday night).
A decade ago there wasnâ€™t the need for the concentration of poverty in Saskatoon. In 1997, a great apartment I had in a fun part of City Park went for $250 a month. I was making a little over minimum wage working at Burron Lumber. The combination of low rent, great location, and a simple lifestyle (bills were food, phone, and $268 car payment) meant that despite making minimum wage, I had money to spend. I watched every Rider game at Seafood Samâ€™s with a pacing, anxious, chain smoking Sam himself living and dying with every Saskatchewan Roughriders win and loss, and we used to walk down to a downtown coffee shop named Nervous Harold’s many nights for a iced coffee and a late supper. By choice I didnâ€™t have a television but I had money to spend to enjoy life around Saskatoon. I donâ€™t have any vices but I think I could have even afforded to smoke a bit. Today that very small one room apartment is going for almost $800/month, which is more than my mortgage. To find an affordable apartment on minimum wage, I canâ€™t live in City Park unless I want to pick up a second job which grinds one down in a different way. Over the years both Wendy and I have worked two jobs when we have needed to. What seems sustainable at first slowly grinds you down in different ways and you have that same kind of withdrawal from your community, often from fatigue and exhaustion. Again back to Doug Cuthandâ€™s comments.
When the economic and social doors are closed or hard to open, people tend to turn to illegal activity as a quick fix.
This was best articulated to me when I was at a Correctional Services of Canada seminar on womenâ€™s corrections. One of the things that was mentioned throughout the day was what many women in poverty will have to do to survive. It ranges from robbery, prostitution, drug dealingâ€¦ the illegal activities that we all see in Saskatoon but never really get to what is really causing them. When caught in poverty, you have to turn somewhere. I have heard the police talk about prostitutes starting working the street and losing their virginity to johns at 13. The girls often recruit each other as they see it as a good source of easy money without ever having the chance to realize the cost they are about to pay. Again, its the pursuit of the iPods, cars, or as I wrote about a couple of years ago, even food. There is what Cuthand said, an easy turn to the riches that gangs offer up (read the first chapter of Freakonomics to see that most gangs pay very poorly at the bottom of the pyramid). Or there is a turn to substance abuseâ€¦ beer, hard liquor, crack, meth, modelling glue, solvents, paint, Lysol, Listerine, methadone, hand sanitizer, you name it, I have seen it abused. It starts out as an escape and turns into a prison and later a personal version of hell.
This kind of aligns itself with a conversation I had a with a local politician who said to me that they were surprised at the level of racial anger they have heard lately. Being married to someone of mixed Guyanese descent (Amerindian, Bihari, British, and Black according to her DNA tests), racism has always both interested and concerns me. Racism (which is going both ways) seems to be coming out the micro economic future that people are looking at. Itâ€™s their personal economy that doesnâ€™t work. Income doesnâ€™t cover rent or food which creates a lack of hope. Soon the the despair sets in, especially when you realize that hard work wonâ€™t deliver you out of this and it gives to anger and a need to blame someone else. You see this in American political and race rhetoric. How many times did Lou Dobbs say, â€œThese Mexican illegal’s are taking good American jobsâ€ which ignores the fact that Americanâ€™s donâ€™t want them and the jobs arenâ€™t very good in the first place. Is it a coincidence that Romaâ€™s in France are being persecuted during a time of difficult economic times?
During the times that my family was at our poorest and things looked extremely bleak, I never had any doubt that eventually life would turn around and things were going to be better one day if I worked hard. To use Doug Cuthandâ€™s language, the door was pretty easy to open. My first apartment was in a prime downtown neighbourhood for $250 and affordable with a minimum wage job. Your options are limited today if you do not have what many would define as a high paying job or are a one wage earning household.
I have spent hours this week trying to articulate the change in the residents of the shelter over the last four years. It clicked in today that the difference was that there has been a loss of hope. The wages havenâ€™t changed but everything else has gotten more expensive and less accessible. While I have only lived in Saskatoon since 1984, I have been here long enough to see some bad times before the good times hit. While a large majority of Saskatoon has benefitted from the economic prosperity that has come to Saskatoon. Not all have. Of course the question that all cities have is, â€œwhatâ€™s the best way to address this?â€ Iâ€™ll start looking at solutions on Tuesday.
The net effect of the failures in banking is that a lot of people have less money than they expected they would have a year ago. This is bad enough, given our habits and practices of modern life. But what happens when farming collapses? The prospect for that is closer than most of us might realize. The way we produce our food has been organized at a scale that has ruinous consequences, not least its addiction to capital. Now that banking is in collapse, capital will be extremely scarce. Nobody in the cities reads farm news, or listens to farm reports on the radio. Guess what, though: we are entering the planting season. It will be interesting to learn how many farmers "out there" in the Cheez Doodle belt are not able to secure loans for this year’s crop.
My guess is that the disorder in agriculture will be pretty severe this year, especially since some of the world’s most productive places — California, northern China, Argentina, the Australian grain belt — are caught in extremes of drought on top of capital shortages. If the US government is going to try to make remedial policy for anything, it better start with agriculture, to promote local, smaller-scaled farming using methods that are much less dependent on oil byproducts and capital injections.
This will, of course, require a re-allocation of lands suitable for growing food. Our real estate market mechanisms could conceivably enable this to happen, but not without a coherent consensus that it is imperative to do so. If agri-business as currently practiced doesn’t founder on capital shortages, it will surely collapse on disruptions in the oil markets. President Obama at least made a start in the right direction by proposing to eliminate further subsidies to farmers above the $250,000 level. But the situation is really more acute. Surely the US Department of Agriculture already knows about it, but the public may not be interested until the shelves in the Piggly-Wiggly are bare — and then, of course, they’ll go apeshit.
I donâ€™t know if I agree with him and maybe it is the context I am in that governments would allow crops to go unseeded because banks wonâ€™t give farmers operating loans. Nothing would bring bank nationalization on quicker than banks choosing stock price over people going hungry. While I like Kunstler enough to have read almost every book he has written, I tend to think he underestimates our ability to overcome. Then again I watch more than 10 minutes of CNBC and listen to the talking heads and I wonder if he might know what he is talking about.