It seems that I may no longer have to answer the question, “Why are you doing a case study of Filipinos?” Ever since the 2006 Census showed that Filipinos were the largest immigrant group entering the country, there has been increased interest in the status of the Filipino population in Canada, with a major focus on those who have entered the country under the Live-in Caregiver Program (LCP). It’s gotten to the point that to say you’re working with the Filipino population is to invite harassment at parties by people wanting to know why nannies aren’t allowed to bring their family members to Canada with them (an excellent question, but one outside of my field of study).

In June, the Vancouver Sun featured a special five-part series on Filipinos in BC, trying to paint a broader picture of the Filipino population than their reputation as “nannies and maids”. However, the articles succeeded only in painting a somewhat grim picture of the challenges new immigrants face, even well-educated Filipinos who are usually fluent in English. Many of the more recent Filipino arrivals came to Canada on temporary worker visas. This program started in 2001 and was intended to fill labour shortages in technology, such as jobs in the burgeoning oil sands in Alberta. It was then extended to all kinds of other areas such as nursing, trucking, construction, fast food industry, and retail. There have been complaints about the program as it is vulnerable to human rights abuses, although some temporary workers may now apply for permanent residency after two years. Still, as I found out during my fieldwork in Toronto, Canada offers a better deal than other countries: it takes ten years to qualify for residency in Germany and in Saudi Arabia, it is impossible to get permanent residency. There are many other challenges for newcomers, which is why many choose to move to the major cities, where substantial Filipino populations, cultural associations, and community groups can provide support.

As many of you know, my dissertation focuses on the housing and transportation choices of Filipino immigrants in Toronto. I am particularly interested in how these choices have changed over time as the city grew and changed. What kinds of jobs did new immigrants find when they entered the country? Where did they live? How did they travel? Structural changes in immigration policy have played a key role in these choices, such as the introduction of family class sponsorship in the 1970s, the creation of the LCP in the 1980s, and the temporary worker category in the 2000s. I will be writing more on my dissertation topic as I finish up my data analysis in the next few months.

I’ve often felt that homeownership is not the rosy American Dream that it claims to be. I find homeownership limiting, both economically and geographically: my parents and their friends, and now friends my own age, seem to sacrifice anything and everything in order to make mortgage payments. The years I worked at Canada Mortgage and Housing Corporation, taught me how the federal housing agency was created partly to help sell the idea of homeownership right after WWII and enable it through a series of government-backed programs and policies. Then there’s my own research in the area of immigrant settlement and housing choice, which included a serious look at Canadian federal housing policies that have slowly eroded rental housing, co-op housing and social housing as options while supporting homeownership through numerous incentives. Let’s just say that it’s no surprise that at age 36, I’m still a renter, bucking the DINK and yuppie trends, a little cynical about the myth that renting is just “throwing your money away.” After all, renting has allowed me to remain flexible, pick up and move to different cities, travel, and live in neighbourhoods I never could have afforded if I had bought.

It appears that Richard Florida agrees with me. Higher rates of renting, public transit use and residential mobility are all key themes in Florida’s latest book, The Great Reset: How New Ways of Living and Working Drive Post-Crash Prosperity, released two weeks ago (read a review of the book, and other Florida works and quirks, on Urbanophile). Florida belies the myth that housing is a good investment, particularly when it’s held for 20 or 30 years: the rate of return on housing in the US has generally been quite low, in fact from 1890 to 1990 it was exactly zero. We’ve all seen how difficult it can be to sell a house in recent years in the US, and in earlier recessionary times in Canada: my parents’ current house was bought for $20,000 less than a similar house a few blocks away because the owner had lost her job in the 1990s recession and had to sell quickly. A friend’s parents sold their house in 2007 for almost the same price they paid for it in the early 1980s because the mill in their town had closed, leaving most of the residents out of work.

Overinvestment in housing has decreased investment in other areas like medical technology, software and alternative energy. Florida has written before about the dangers of putting too many eggs in one basket: at the height of the mortgage crisis in the US (in a November 28, 2009 article in the Globe and Mail), he wrote that the mortgage system was directly responsible for the crisis, and that the era of overinvestment in homeownership and car ownership were over. Interestingly, Florida also applies his argument to individuals: Canadians carry more mortgage debt as a percentage of their disposable income than Americans, meaning we have far less to spend on other things. A friend of mine who works in mutual funds and investments tells me the average homeowner pays for their house two and a half times due to interest. This is probably no surprise to those of us living in the country’s biggest cities, where housing prices are astonomical and have not shown any decline in growth since the US mortgage crisis. In fact, housing prices in Canada increased 20% last year.

Florida argues that in cities with higher homeownership, unemployment is also higher because homeowners are less likely to pick up and move when things get tough. He believes that mobility is often the key to employment, and more flexible housing choices are key in times of economic instability. It seems there are other people out there like me, who prefer the flexibility of renting because we want to remain mobile and have no desire to live in one place for twenty years. We aren’t all that uncommon either: 40.1% of the Canadian population moved within the past five years, according to the 2006 Census; 14.1% moved within the last year. Florida correctly predicted that rental housing would play a major role in stabilizing the US economy after the mortgage crisis: families were able to move into foreclosed properties that were renovated and re-marketed as affordable rental housing. This was because the Obama administration wasted no time in investing $4.25 billion on the creation of tens of thousands of federally-subsidized rental units using the federal Making Homes Affordable program.


Vintage 1950s matchbooks featuring real estate ads

In his May 3rd article in the Globe and Mail, Florida goes as far as saying that “home ownership is an impediment to Canada’s long-term prosperity” because high house prices, low interest rates and lax government policies in Canada could spell trouble for the housing market. Even though people have been talking about the “bubble” for over fifteen years, Edward Jones’ recent report predicts Canada’s is about to burst. The federal government recently made it more difficult to get a mortgage and is considering other measures to tighten mortgage availability in order to protect the market from collapse. They eliminated the no down payment mortgage option before the US crisis began, but there is still a 5% down option. What is particularly interesting to me as a non-economist is how the housing market has historically been used to maintain or even increase consumer spending to stave off or recover from economic recession: besides the post-war era, we saw low interest rates brought in after the 1989 stock market crash in Canada and after 9/11 in the US to encourage people to keep buying homes. I guess there’s a fine line between “removing barriers to homeownership” to encourage spending and bringing on an economic meltdown by letting anyone with a a couple of bucks buy a house.

Massive marketing was required to sell the idea of homeownership as a stable, more respectable lifestyle choice. Let’s not forget that those first homes were practically given away at very low prices and low mortgage rates, their construction highly subsidized by federal governments in both the US and Canada. Those cherubic children, war brides and returning vets in 1940s suburban home ads were so convincing that most of us still believe homeowners are somehow better than renters: even Florida hints that switching from homeownership to renting might have “unforseen social costs” for cities and regions. Our own values and biases about homeownership drive the market. Yet a mere 60 years ago, renter households were the majority in both our countries.

The classic French text Un chez-moi à mon coût (2000) (edited by Eric Brassard), which I read at the urging of a fellow renter working at CMHC, carefully dissects all the economic myths of homeownership, arguing that it is often the non-economic factors that are the most influential. The book presents case studies of housing choices of a variety of professionals, both renters and owners, who argue that there is no sound economic argument for homeownership or against renting: it just comes down to personal preference. But we’re so invested in the homeownership ideal that investing in rental housing, or convincing middle-income families to rent, would take a lot of work. The tide may be turning in the US, but with high housing prices and fairly easy access to mortgages, we may not see this shift in Canada until our own mortgage crisis rears its ugly head.

In what has been called “a hard-fought victory for President Obama“, the Affordable Health Care for America Act (HR 3962), passed November 7, 2009 in the House of Representatives. The vote was 220:215, an extremely narrow victory (218 votes were needed to pass the bill). Among other things, the bill prohibits insurers from charging different rates or refusing treatment based on a patient’s medical history or gender, requires most employers to provide health insurance, increases Medicaid eligibility to cover more low-income people, a subsidy plan for low- to middle-income people to buy insurance, a central health insurance exchange where people can compare plans and rates, as well as a government-run insurance program.

In an earlier post, while the US was gearing up for its health care talks, I wrote extensively about some of the myths concerning public health care provision. Among these was the claim that public health care is much more expensive than private health care, which is simply not the case. In addition to the data I provided in that post, the Canadian Institute for Health Information’s annual report on health care spending was released today. According to their figures, Canada’s health care costs rose by 5% to $183.1 billion in 2009 compared to 2008. Canada’s per capita costs are highest at the early and late stages of life: $8,239 for an infant under one year old, and up to $17,469 for an adult over 80 years old. For those aged 1-64, the per capita cost is only $3,809 per person. There are also interesting regional differences, with Alberta and Newfoundland and Labrador having the highest per capita costs and BC and Quebec having the lowest. Our costs are in the top 20% worldwide: presumably the 20% with socialized health care systems, since our costs compare to France, the Netherlands, Germany, and Austria.

How do we compare to the US? The per capita cost in the US is $7,290 US, almost double Canada’s average of $3,895 and the highest of 26 countries surveyed by the Organisation for Economic Co-operation and Development (OECD). While Canada’s increased from 10.8% of the GDP in 2008 to an estimated 11.9% in 2009, the CIHI reported that the US was forecasting a similar increase in spending, up to 17.6% of its GDP. Interestingly, they also write that health care spending spikes during economic recessions.

The battle isn’t over yet in the US, which plans to take their health care bill to the Senate. Only one Republican in the House of Representatives voted for HR 3962, and 39 Democrats voted against it; the Democrats will need 60 of 100 votes in the Senate to end debate and bring the legislation to a vote. This was in part due to some controversial amendments at the last minute that added in some flexibility for states in dealing with abortion. Speaker of the House Nancy Pelosi compared the passage of the bill to the 1935 passage of Social Security, but it will be a rough run at the Senate if the abortion issue remains unsolved.

We live in momentous times: currently, a very significant piece of legislation is making its way towards adoption. I outlined the reasons for the creation of a national housing strategy during Homelessness Action Week. Housing has a profound influence on the planning of our cities and regions, and housing provision in Canada has been subject to a litany of policies and programs that have decreased housing choice, made homeownership the only viable choice for most Canadians, and undermined the ability of developers to construct rental housing.

The Secure, Adequate, Accessible and Affordable Housing Act (Bill C-304), was proposed by Vancouver NDP MP Libby Davies in February of this year. It has been a long time coming: similar bills were introduced in 2008 and 2006, but the instability of minority governments prevented them from gaining any serious ground. Parliament voted to move ahead with Bill C-304 on September 30, 2009 (this second reading passed with a vote of 147 to 138) and now it must go through a House Standing Committee Meeting before being brought back to the House of Commons for a 3rd reading. Some significant passages from the bill:

  • “Whereas the provision of and access to adequate housing is a fundamental human right according to paragraph 25(1) of the United Nations Universal Declaration of Human Rights…”
  • “Whereas Canada’s wealth and national budget are more than adequate to ensure that every woman, child and man residing in Canada has secure, adequate, accessible and affordable housing as part of a standard of living that will provide healthy physical, intellectual, emotional, spiritual and social development and a good quality of life…”
  • “Whereas improved housing conditions are best achieved through co-operative partnerships of government and civil society and the meaningful involvement of local communities…”
  • “3.(1) The Minister shall, in consultation with the provincial ministers of the Crown responsible for municipal affairs and housing and with representatives of municipalities and Aboriginal communities, establish a national housing strategy designed to ensure that the cost of housing in Canada does not compromise an individual’s ability to meet other basic needs, including food, clothing and access to education.”
  • “3.(2) The national housing strategy shall provide financial assistance, including financing and credit without discrimination, for those who are otherwise unable to afford rental housing.”

Under the specific requirements, the Act ensures the construction of housing that “includes not-for-profit rental housing projects, mixed income not-for-profit housing cooperatives, special-needs housing and housing that allows senior citizens to remain in their homes as long as possible”, housing for the homeless, temporary and emergency shelters. They even managed to include standards for sustainable and energy-efficient design. The Act prioritizes housing for those who haven’t had access to stable, secure affordable housing over an extended period; those who have special needs due to family size or status, or mental or physical disabilities; and those who have been denied housing due to discrimination.

The Act requires the federal housing Minister to work with the provincial ministers of housing and municipal representatives, and (s)he is required to convene a meeting of these within 180 days after the passage of the Act to develop standards and objectives for the strategy, set targets for the commencement of programs, and develop principles of agreement for implementation of the programs. The Minister “may take any measures that the Minister considers appropriate to implement the national housing strategy as quickly as possible.” The Minister is required to present a report of this meeting “before each House of Parliament on any one of the first five days that the House is sitting following the expiration of 180 days after the end of the conference.”

Like many Canadians, I’ve been following Bill C-304 rabidly. Legisinfo provides the latest updates so stay tuned: the House Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities met on Nov. 5th and will meet again on Nov. 17th. They need to report on their debates to the House of Commons before the 3rd reading of the bill. To quote Chris Brown, the NDP MP for Hamilton Mountain, “It is about rights. It is about dignity. It is about investments. It is about jobs. It is about time.”

160x240-09This is an urgent call for my regular readers to participate in the fourth annual Homelessness Action Week in BC. Among the useful facts at stophomelessness.ca are that Canada is the only G8 country without a national housing strategy, one in five households lives in poverty, and the UN has described homelessness and housing in Canada as a national emergency. Suburban areas like Maple Ridge and Coquitlam have the fastest-growing homeless rate in Metro Vancouver, and the leading cause of homelessness is poverty.

I did an internship at SPARC BC which advocates for a full housing continuum, everything from supportive housing to rental to co-op to ownership. We need more options, particularly for young people, single parents and others who can’t afford ownership (this includes me and most of my friends who are university graduates in well-paying jobs). This is just ridiculous, and helps keep us stuck in high-priced rental rather than having access to more reasonable rates so that eventually we can own. If anything, the recent mortgage crisis in the US should have shown us that there is no one-size-fits-all approach to housing, and that everyone cannot own housing. We need to get the policy makers going on a national housing strategy including people at CMHC, where I worked before going back to school for my Masters in Planning. CMHC is now providing $2 billion a year in economic assistance to municipalities for housing-related infrastructure projects through Canada’s Economic Action Plan (those “shovel-ready” projects I mentioned in an earlier post).  The key word is housing-related…not housing! Let’s get real: CMHC calls itself the national housing agency…and we have no national housing strategy?

Go to stophomelessness.ca to find out how to get involved and add your voice to the call for a national housing strategy.

Health care is a polarizing issue; it always has been. Because it is a service that is offered privately in some places and publicly in others, there is an ongoing debate about its ethics, its efficiency, and its reliability. The ethical debate is simple: in countries with private health care, the rich receive much better treatment than the poor. The efficiency debate is more complex: most argue a publicly-funded system is more efficient, saves costs, and treats all patients equally, while others argue the private system is superior. Reliability is a characteristic that is frequently brought up in health care discussions: wait times, availability of general practitioners, availability of equipment. But it often is difficult to get behind the political double-speak to the reality of health care provision.

Health care is a crucial factor in planning more socially equitable cities and regions because anyone can be affected by health problems or accidents, and public health care protects the middle and lower classes from bankruptcy and homelessness. Before the US mortgage crisis, medical bills were the leading cause of bankruptcy in the country, affecting 2 million people annually (this 2005 Harvard study showed that three quarters of these had health insurance at one time, 56% were middle class and over half had attended college). A 2009 study published in the American Journal of Medicine reported that 62% of bankruptcies in the US were due to medical bills and 80% of these people had health insurance. A 2008 study in Health Matrix: American Journal of Law-Medicine showed that for 49% of homeowners going through foreclosure, the foreclosure was caused by illness, unmanageable medical bills, lost work due to a medical problem, or caring for sick family members.

The biggest debates at the moment are happening in the US, the only industrialized country that does not have public health care. US President Barack Obama has been getting a lot of flack for his proposed health care reforms, which would introduce a government-run insurance program to make health care more affordable. Obama’s approval ratings have fallen nine percent since July 2009, to 52 percent, which critics say shows waning support for a national health care program. Because of our proximity, the US and Canadian systems are constantly being compared. The scary thing is that while many Americans are terrified of the Canadian system, pro-economy Canadian politicians want our system to be more like the Americans’, with private clinics offering services such as MRIs in Quebec. American politicians will cite long wait times for surgeries and MRIs, inability to find a general practitioner, and rumoured higher costs as evidence that public health care doesn’t work. However, these comparisons are faulty for several reasons.

The myths demystified

First, the long wait times have only existed since 1996, when the Liberal government, faced with a budget shortfall due to a prolonged economic recession, cut overall spending levels and merged health care transfer payments to the provinces with transfers for other social programs. Serious cuts were also made to federal housing programs and education, resulting in an erosion of the social welfare state. These cuts, in addition to an aging population and high inflation rates in health costs, have caused problems with the system such as fewer available beds, shorter recovery time for surgeries, and increased workload for doctors and nurses. Fees have also been introduced for certain services such as travelling to a hospital by ambulance, eye exams, and physiotherapy. In BC and Ontario, each resident now pays a health premium annually. But the government has made significant strides in reducing these wait times: in 2004 a $5.5 billion Wait Time Reduction Fund was established and most provinces now have websites that allow us to check on wait times for specific services in our areas. Long wait lists are not a form of government rationing, as some Americans believe, but an unfortunate side effect of decreased government spending on health care. The wait lists, rather than prioritizing wealthier patients, ensure that all patients have equal access to scarce and high-demand services. Most health statistics in Canada are at or above the OECD average, including life expectancy, infant mortality, perinatal mortality, and percentage of health care costs paid by government. On the contrary, health care in the US is consistently ranked the lowest in the developed world by organizations as venerable as the World Health Organization.

Second, there are many studies showing private health care is much more expensive. Malcolm Gladwell, in a 2005 New Yorker article, wrote that “One of the great mysteries of political life in the United States is why Americans are so devoted to their health-care system.” He writes that efforts have been made to introduce universal health care six times: during the First World War, the Depression, the Truman and Johnson Administrations, the Senate in the 1970s, and the Clinton years. Americans spend $5,267 per capita on health care every year, almost two and half times the industrialized world’s median of $2,193; the US spends more than a thousand dollars per capita per year—close to four hundred billion dollars—on health-care-related paperwork and administration, whereas Canada spends only about three hundred dollars per capita.

In 2005, Dr. Quentin Young, national coordinator of Physicians for a National Health Program said that “The paradox is that the costliest health system in the world performs so poorly. We waste one-third of every health care dollar on insurance bureaucracy and profits while two million people go bankrupt annually and we leave 45 million uninsured. With national health insurance (‘Medicare for All’), we could provide comprehensive, lifelong coverage to all Americans for the same amount we are spending now and end the cruelty of ruining families financially when they get sick.” This year, the World Health Organization showed that the US spends 12.7% of its GDP on health expenditures, well above the worldwide average of 8.7% and 3.4% in South-East Asia. Canada spent 10.5% of its GDP on health expenditures in 2007. A 2007 report from the Coalition for Health Care said that national health expenditures were expected to outpace the growth of the GDP. The higher costs get in the US, the more people are uninsured.

Third, because we have the world’s most inflated health care costs just across the border, many of our more profit-hungry doctors are lured south. This means fewer doctors for Canadians, particularly general practioners. This, in addition to rampant health care cuts by successive neoliberal governments, is the reason for our doctor shortages.

I may as well put to rest other myths of universal health care voiced by the American public and mocked in Michael Moore’s Sicko: yes, we can choose our own doctors. No, the government will not force euthanasia on you. No, we’re not communists. And no, the economy will not collapse if universal health care is introduced.

As Gladwell writes, “moral hazard”, the idea that insurance can change the behaviour of the person insured, has become entrenched in American economic thought, policy and legislation. If Americans had universal health care, the idea goes, they would “waste” it; making them pay for it ensures it’s only used when it’s really necessary. But this only works if we treat health care like a consumer product, which it plainly is not: we only go to the doctor when we’re sick, and even then, we don’t really want to go. And there’s no way of knowing when a visit to the doctor could make sound economic sense: in the case of having moles checked for skin cancer, or having regular Pap smears. Early detection could save the health care system a good deal of money. Many insurance companies have moved to the “actuarial model” which charges more to insured people with serious health conditions, and their employers, basically guaranteeing that, in many states, these people cannot get health insurance. Under the social-insurance model, which Canada, Germany, the UK, Japan, and all other industrialized nations follow, everyone pays equally into health care, and everyone benefits equally.

The long fight for universal health care: Tommy Douglas

The reality is that health care has always been a political issue, and not just in the US. Tommy Douglas, the “father of health care” in Canada, fought long and hard to achieve universal health care in 1961. Douglas was leader of the Co-operative Commonwealth Federation (CCF) from 1942 and premier of Saskatchewan from 1944-1961. The fact that Douglas led the first socialist government in North America was intrinsically tied to his bold introduction of universal health care. There was also a personal connection: Douglas injured his leg at age 10 and developed osteomyelitis. He would have lost the leg to amputation had a local doctor not seen the condition as a good subject for his students, agreeing to treat Douglas for free. Unable to volunteer for service during WWII due to the old leg injury, Douglas set his sights on health care reform.

Douglas attended Brandon College to prepare for his future as a Baptist preacher. He was attracted to the social gospel movement, which fused Christian principles with social reform. While in his religious capacities at Calvary Baptist Church in Weyburn, Saskatchewan during the Great Depression, Douglas became a social activist and joined the CCF. He was elected to the Canadian House of Commons in 1935. He led the CCF to provincial victory on June 14, 1944, winning 47 of 53 seats in the Legislative Assembly of Saskatchewan. They won five straight victories until 1960, and were responsible for the creation of the publicly-owned Saskatchewan Power Corporation; Canada’s first publicly-owned car insurance service; a large number of Crown Corporations; legislation that allowed unionization of the public service; a significant passage of the Saskatchewan Bill of Rights that preceded the adoption the UN’s Bill of Rights by 18 months; and the first program in Canada to offer free hospital care to all citizens. Thanks to the postwar boom, the Douglas government also paid off the huge public debt left by the previous Liberal government and achieved a government surplus.

In 1958, newly elected Prime Minister John Diefenbaker, also from Saskatchewan, promised that any province seeking to introduce a hospital plan would receive fifty cents on the dollar from the federal government: this promise was renewed in 1959. The Saskatchewan Medical Care Insurance Bill was introduced in October 1961 and given Royal Assent in November, while Douglas went on to lead the newly formed New Democratic Party. Woodrow Lloyd became his successor as premier of Saskatchewan.

On May 1st, 1962, the Saskatchewan Medical Care Insurance Act was to be adopted, but the province’s doctors went on strike and 90% closed their offices, forcing Lloyd to delay adoption of the act. The government brought in doctors from Britain, the United States and other provinces in order to staff community clinics set-up to meet demand for health services. The Act was passed July 1st, 1962. By mid-July some of the striking doctors returned to work. Lord Taylor, a British physician who had helped implement the National Health Service in the United Kingdom, was brought in as a mediator and the “Saskatoon Agreement” ending the strike was signed on July 23, 1962. As a result of the agreement, amendments to the Act were introduced allowing doctors to opt-out of Medicare and raising fee payments to doctors under the plan, as well as increasing the number of physicians sitting on the Medical Care Insurance Commission. By 1965, most doctors favoured the continuation of Medicare. The strike was a significant test for Medicare. Its failure allowed the program to continue and the Saskatchewan model was adopted throughout Canada within a decade. The political divisions within the province aggravated by the strike contributed to the Lloyd’s government defeat in the 1964 provincial election. However, even though the Saskatchewan Liberal Party of Ross Thatcher had opposed the plan, Medicare was so popular that Thatcher’s government left it in place.

The program’s success led Diefenbaker to appoint Justice Emmett Hall, a noted jurist who also hailed from Saskatchewan, to chair a Royal Commission on Health Services in 1962. In 1964, Hall recommended the nationwide adoption of Saskatchwan’s model of public insurance. The program was created in 1966 under Lester B. Pearson’s minority government, with the NDP, who held the balance of seats, putting significant pressure on the Liberals. The federal government was to pay 50% and the provinces the rest. In 1984, the Canada Health Act was passed, prohibiting user fees and extra billing by doctors.

The moral dilemma

As Gladwell writes, the universal health care question is really quite simple: “Do you think that redistribution of risk is a good idea? Do you think that people whose genes predispose them to depression or cancer, or whose poverty complicates asthma or diabetes, or who get hit by a drunk driver, or who have to keep their mouths closed because their teeth are rotting ought to bear a greater share of the costs of their health care than those of us who are lucky enough to escape such misfortunes?”

As a Canadian whose parents (both registered nurses) immigrated to the country the year universal health care was introduced, I’m proud to say that we do not feel this way. Canadians, including Shirley Douglas, daughter of Tommy Douglas, have rallied to save our publicly-funded health care system throughout recessions and political changes. A 2009 poll by Nanos Research found 86.2% of Canadians surveyed supported or strongly supported “public solutions to make our public health care stronger.” A 2009 Harris/Decima poll found 82% of Canadians preferred their healthcare system to the one in the United States, more than ten times as many as the 8% stating a preference for a US-style health care system for Canada. A Strategic Counsel survey in 2008 found 91% of Canadians preferring their healthcare system to that of the US. In the same poll, when asked “overall the Canadian health care system was performing very well, fairly well, not very well or not at all?” 70% of Canadians rated their system as working either “well” or “very well”. Since the passage of the 1984 Canada Health Act, the Canadian Medical Association has been a strong advocate of a publicly-funded health care system, including lobbying the federal government to increase funding, and being a founding member of (and active participant in) the Health Action Lobby (HEAL), although some provincial medical associations would like to see a larger private role. Tommy Douglas was inducted into the Canadian Medical Hall of Fame in 1998 and voted “Greatest Canadian” in a nationwide Canada Broadcasting Corporation (CBC) contest in 2004.

No one should die because they cannot afford health care, and no one should go bankrupt or lose their home because they get sick. Period.

In the last few months we’ve seen the birth of another useless media term related to urban planning: “shovel readiness”. Now, I’d be the first to agree that words like “stimulus”, “funding”, and “proposal” are not exciting. But frankly, “shovel readiness” is not riveting either (for one thing, it needs to be explained). Apparently we need something to make these urban planning stories exciting to regular people. That’s too bad, because the stories already have the right stuff: drama, political intrigue, intense competition. Infrastructure funding is a huge problem in both the US and Canada, although the Americans generally believe in spending when times are tough: witness the 1950s interstate system project, the largest public works project in history. Canadians believe in hoarding, giving tax breaks to the rich, and whining about how little money we have, apparently.

About 300 proposals have been submitted to the Obama administration for $8 billion in high-speed rail funding under the federal stimulus. This article from National Public Radio (NPR) shows how projects in advanced planning stages (“shovel ready”) with state or private funding already committed will probably be the winners in the competition for funds. These include high-speed links from Orlando to Tampa FL and Vancouver BC to Portland OR, while southern states face legislative or social barriers to high-speed rail. Alabama’s 1901 constitution, for example, forbids the state Department of Transportation from investing in alternative transportation, including rail. NPR suggests that a multi-modal approach is necessary, with a variety of transportation agencies collaborating to create multimodal hubs, otherwise high-speed rail riders will find themselves stranded in car-dependent areas surrounding railway stations. This approach may also help the proposals win federal stimulus funding.

In Toronto, the city managed to raise two-thirds of the funds needed to buy 204 replacement streetcars, including $1.2 billion from the City and $416 million from the Province of Ontario. Mayor David Miller had applied for federal stimulus funding, saying the streetcars would generate jobs in Thunder Bay (where 25% of the new streetcars would be built), Quebec, Manitoba, and the Greater Toronto Area. Bombardier’s report on the proposal said it would generate 5,000 direct jobs and 14,000 indirect jobs. Infrastructure Minister John Baird hinted earlier that the federal government would not fund the streetcar replacement project because it does not meet federal stimulus requirements: it doesn’t meet the 25% Canadian content requirement, does not generate jobs in the Toronto area within a two-year period and will not be completed by March 31, 2011 (and they actually used the term “not shovel ready”).

The federal government did announce $200 million in infrastructure funding for Toronto to help fund 500 infrastructure projects, including upgrades to the transit system and water mains. The City had pledged $400 million itself for these projects, which include repairing the Coxwell Sanitary Trunk Sewer, upgrading transit stations with better security, resurfacing roads, and parks and recreation projects. But no streetcar funding.

Toronto City Council held an emergency meeting on September 11, 2009 and decided to pony up the additional $417 million themselves by deferring some other capital projects. Kudos to them, and Miller, for believing the streetcar purchase was critical for the GTA.

See? Drama. Intrigue. Political positioning. And a last-minute decision to to ahead with “what’s right”, as Ontario Premier Dalton McGuinty put it. Who needs made-up words?

Housing has for decades been a major component of economic growth–and economic decline–in Canada and the US. The recent economic downturn was linked to the subprime mortgage crisis in the US, in a bid to encourage low-income renters to move into the housing market since house prices declined after September 11, 2001. While Canada wasn’t hit as hard (Canada Mortgage and Housing’s zero-down-payment mortgage only lasted from 2004-2008), every time the housing market threatens to level off, the Bank of Canada lowers the interest rate. Why are we so obsessed with housing as an investment? Why do policy, government programs, and society in general insist that homeownership is necessary? Shouldn’t housing’s postwar definition as a consumer product come secondary to its role as primary shelter?

While I harbour a fascination for conspiracy theories, this isn’t one. Before WWII, renting a home was the norm in Canada. But the National Housing Act was revised in 1944, and the Central Mortgage and Housing Corporation established in 1946. Like the FHA in the US, CMHC effectively controlled the physical design of suburbs because it directly insured residential mortgages and gave grants for social housing. It was basically a national planning agency with strong regulatory and financial power, the first to ever exist in Canada. Throughout the 1940s, Canadian planners began using Chicago School principles to identify neighbourhoods “decaying” or “blighted”. Usually these were areas with a large proportion of older, poorly maintained multifamily housing tenanted by the poor, immigrants, and renters. Urban renewal schemes, and their corrollaries, suburban housing developments, took off in the 1950s. Homeowners were redefined as wealthier, more stable, more family-oriented…and housing was redefined with the single-family home in the suburbs being the ideal.

While homeownership grew in prestige, renting declined. Steadily, the federal government and the renamed Canada Mortgage and Housing Corporation have removed subsidies for rental housing, affordable housing and decreased its role in the development of other types of housing such as co-operatives and cohousing. The passing of Condominium Acts in the 1970s sealed the fate of rental housing: able to outbid rental developers and access federal and provincial subsidies, condo developers have changed the face of high-rise living in Canadian cities. In 2006, 10.9% of homeowners in Canada lived in condos, more than double the 4% who owned condos in 1981. Interestingly, the highest condo ownership rates were seen in Vancouver, Abbotsford, Victoria, and Kelowna. Single-person households traditionally have lower homeownership rates (52.2% in 2006 were renters), and they are one of the most rapidly-growing household types in the country. According to the 2006 Census, Canada’s homeownership rate that year was 68.4%, its highest since 1971. J. David Hulchanski, Director of the Center for Urban and Community Studies at University of Toronto, believes that high ownership rates are the direct result of federal and provincial housing policies that subsidize ownership over renting.

We’re often told that housing is a good investment. But a lot of that depends on where you buy and when you need to sell: what if you buy in a neighbourhood whose value doesn’t increase substantially? And what if you need to sell…well, now? Richard Florida recently compared US house prices in 300 cities and found on average, a 15% drop in prices from 2006-2009. Cities with an even greater price drop include L.A., San Francisco, Phoenix, Miami, Chicago, and Washington, D.C; prices didn’t drop as quickly in New York, Portland, Seattle, Baltimore, Boston, or Houston.

While housing may be a great long-term investment, should that be its primary purpose? What about the right of Canadians to suitable, affordable, and adequate housing? Housing affordability in Canadian cities is a major issue. From 2001-2006, housing costs increased by 12% for renters and 22% for owners. A quarter of homeowners spent over 30% of their incomes on housing, which is one of the three characteristics CMHC uses to measure core housing need (suitability, affordability, and adequacy). In 2006, half (50.1%) the households over the affordability threshold were renters and 41% were homeowners with mortgages. In 2001, renters were four times as likely as owners to be in core housing need. Other major groups in core housing need include those living in Canada’s largest cities, Aboriginals, the elderly, single-parent households, immigrant households, and those whose incomes are less than $20,000/year. These trends and the meteoric rise in housing prices in Canadian cities until last year mean that more people are buying housing merely to “flip” the next year, selling at a higher price to make a profit. This unrestrained profiteering further erodes affordability, although the recent economic decline has temporarily increased housing affordability in Canada.

Nearly 6 out of 10 homeowners in 2006 had a mortgage, which means big business for banks and for CMHC, which corners 70% of the mortgage market plus mortgage insurance (necessary for anyone who puts less than 20% down on their mortgage). Unlike our friends south of the border, Canadian homeowners cannot deduct mortgage interest from their taxes. While we may not have a mortgage crisis here, mortgage debt is very significant for many Canadian homeowners. Housing affordability concerns have started to edge out the market’s need for ever-increasing prices.

It’s particularly interesting that what’s good for renters is not good for owners. When housing prices rise, rents rise as well. This leaves owners richer if they decide to sell, and renters poorer. When interest rates rise, fewer people can afford to buy, which forces more people to stay in rental housing, lowering the vacancy rate. But these high rates also prevent developers from building new rental housing to fill the increased need, i.e. the law of supply and demand does not work for rental housing. Most Canadian cities have built decreasing numbers of rental units since the 1970s, so not only are there fewer rental units per capita than there were back then, but the ones we have are rapidly aging. Rental units are also extremely vulnerable to condo conversion, to the extent that some municipalities, such as North Vancouver, have passed by-laws banning condo conversion if their percentage of rental housing drops below a certain threshhold.

Municipalities have had to get pretty creative in their search for affordable housing options with almost no support from the provincial and federal governments. Vancouver just passed a by-law approving laneway housing in a bid to increase affordable housing options. Single-family homes backing onto a lane will be able to create units up to 500sq. ft. and 1 1/2 stories high to add affordable rental units to the city’s dwindling supply. The units will not allowed to be sold separately from the house, and are intended to supply smaller housing for particular life stages (in other places they’re known as “granny flats”). Vancouver had previously legalized secondary suites, usually in basements of single-family homes, to help deal with its housing affordability problems.

In Canada, many affordable housing and homelessness advocates argue that there is a crisis in housing affordability in our cities that can only be met by increased federal and provincial funding and incentives for rental housing. Richard Florida, in an article in the Globe and Mail at the height of the mortgage crisis (Nov. 28, 2009), recommended a massive increase in rental housing in the US to help alleviate housing needs for low- and moderate-income people, including the purchase and conversion of foreclosed properties to rental housing. He wrote that “Our reliance on single-family ownership is a product of the past 50 years—and the experiment has outlived its usefulness. Not only is it now readily apparent that not everyone should own a home, and that the mortgage system is a big part of what got us into the current financial mess,but homeownership also ties people to locations, making it harder for them to move to where the work is. Homeownership made sense when most people had one job and lived in the same city for life. But it makes less sense when people change jobs frequently and have to relocate to find new work.”

Florida’s recommendations were prescient: a major shift in US housing policy occurred on August 16, 2009. The Obama Administration announced it would spend $4.25 billion of economic stimulus money on the creation of tens of thousands of federally subsidized rental units in American cities. The money will go to build apartments and townhouses, but also to buy and refurbish foreclosed homes to be rented to low- and moderate-income families at affordable rates. Funds for the new units will be available to states on a competitive basis. Analysts call the move a practical solution to skyrocketing foreclosure rates, tight credit, and the economic crisis, saying “the Obama White House has acknowledged that not everyone can or should own a home.” It is expected to ease homelessness, which has increased during the mortgage crisis. In addition to the stimulus money, the government had also set aside $1.8 billion for the construction of rental housing, the same amount Congress approved last year.

While this is a major shift and worthy of celebration, it is very interesting to note what the conservative critics have to say. David John of the Heritage Center said the benefits of homeownership include building equity, family stability, and an overall improvement in society. Other conservative critics have said that homeownership decreases crime and helps people achieve financial independence. Likely these critics agree with George Bush, who in 2002 described the US as a “nation of homeowners.” Since the mortgage crisis, this ideology seems false or at least outdated. In both Canada and the US, the definition of homeownership as ideal, and homeowners as somehow better and more stable than renters, is what got us into the current mess. Not only has the relentless homeownership agenda now displaced thousands of people in the US, but it has made homeownership barely affordable in many Canadian cities as well.

Like the Obama administration, we need to acknowledge that homeownership is not the only answer. Housing needs to once again be redefined as primary shelter to which every Canadian has a right, rather than a consumer product that helps keep the economy buoyant. It is rather significant that it took a crisis as earth-shattering as the sub-prime mortgage crisis to redefine housing in the US. Let’s not wait for that moment in Canada.

TransLink’s recent decision to delay construction of the Evergreen Line yet again illustrates the difficulty the regional agency has in funding projects. As I documented in a previous post, TransLink is a regional body created by the Province of British Columbia, which means it legally has only the powers given to it by the province. Their funding comes from fuel taxes, property taxes, transit fares and advertising.

In the case of large infrastructure projects such as the recently-built Canada Line, the Province and the Federal Government kick in some money. The feds are particularly swayed if the project is of national significance, hence the funding for the 19-km Canada Line during the same year Vancouver is set to host the 2010 Winter Olympics. The original SkyTrain line was constructed for Expo ’86. Usually, the balance of funding is made up through public-private partnerships. The Canada Line had the usual regional, provincial, and federal funding sources, as well as the Vancouver Airport Authority (VAA), the City of Vancouver, and private sector partner, InTransitBC, who was selected through a competitive bidding process. The total cost of the Canada Line is $1.9 billion ($2003), with the federal government contributing $419 million, the province $235, the VAA $245 million, TransLink $321 million, the City $27 million, and InTransitBC $65.3 million. TransLink will own the finished line and set fares, while InTransit BC designed the line and will operate and maintain the line for 35 years.

Like many municipalities, as a regional body TransLink has lots of legal responsibility with few fundraising abilities. Legally, the provincial and federal governments have more taxation ability, hence the Goods and Services Tax and BC’s new Carbon Tax. Yet they have been decreasing their responsibilities each year by transferring them to municipalities. The Evergreen Line had $410 million in provincial funding and $417 million in federal funding, in addition to TransLink’s $400 million. Still, the project fell $173 million short, money that TransLink expected to raise through public-private partnerships and transit-oriented development. TransLink’s proposed funding schemes, such as a parking tax and a vehicle levy, have been met with considerable public resistance.

TransLink, which regularly conducts surveys on ridership and potential ridership, has long been in favour of the 11-km Evergreen line linking Burnaby, Coquitlam, and Port Moody. While Burnaby already has the Millenium and Expo Skytrain lines, Coquitlam and Port Moody are among the fastest-growing municipalities in the GVRD and like most of the region, has no rapid transit options. The Evergreen Line was first proposed 20 years ago, and the Province has been promising its construction for five years.

TransLink also has a history of tenuous relationships with the province, as I wrote in a post about their organizational structure. Disagreements between Kevin Falcon, formerly the Provincial Minister of Transportation (2004-2009), resulted in TransLink dropping the Evergreen and UBC lines in favour of the Canada Line proposal, which the TransLink board had voted down repeatedly. Falcon also dissolved the TransLink board, made up of municipal representatives, and replaced it with a provincially-appointed board with no public accountability. It is not surprising that now that TransLink has built the Canada Line, provincial support has returned to its previous dismal level. And as usual, TransLink takes the blame for funding shortfalls (witness the CBC article entitled “TransLink to yank Evergreen Line funding.”) when the real “bad guy” in this scenario is the lack of any comprehensive federal transportation plan that acknowledges municipalities’ role in public transit provision.