Chequed out: Inside the payday loan cycle

Feb. 11, 2015 – Anna Mehler Paperny and Patrick Cain, Global News

Jillane Mignon just needed cash to pay for day care.

Her job with the City of Winnipeg’s 311 program covered the bills, but not the $1,000 a month it cost to care for her son while she was at work.

“When there are [child care] subsidies, there are no spaces. When there are spaces, there’s no subsidy.”

So it started with a small loan from a payday lender. That took care of that month.

Continue reading

Canada’s Instability trap: When you’re income-rich, but asset-poor

Feb. 9, 2015 – Anna Mehler Paperny, Global News

Canada supposedly got off easy after the global recession. But a months-long Global News investigation has found the reality for many Canadians isn’t nearly as rosy as the headline figures suggest. Increasingly, families across the country find themselves in an instability trap, facing labour uncertainty and an eroded safety net. The social and economic implications are real — and serious.

  • More than half of Canadians make enough to get by from one month to the next but lack the financial cushion in easily available funds to shield them from the unexpected.
  • Canadians in their working prime are dropping out of the job market altogether or have simply stopped looking: Participation rates for men reached a historic low last year; women, whose job market participation rose for decades, has stagnated since 2006.
  • People are turning to cheque-cashing services to make ends meet only to find themselves in cycles of debt. And our analysis finds these businesses clustered in low-income, high-social-assistance areas. But who’s stepping in to fill that need?
  • More Canadians are working temp and contract jobs — and more of them are doing so when they’d rather not. This means lower wages, greater uncertainty and has serious impacts not only on their health but on their families, their communities and the local economy.
  • More Canadians are prematurely cashing out their RRSPs — not for education or home-buying purposes, but because they need the money, tax penalty or no.

Continue reading

A different kind of stimulus package: How ending poverty can save the economy

Photo by Chris Bolin for the Globe and Mail

ANNA MEHLER PAPERNY AND TAVIA GRANT
Friday, May 06, 2011 – Globe and Mail

Behind corridors lined with contemporary Canadian art, sitting at a dark wooden table in his downtown Toronto office, Ed Clark offers some economic advice that might not typically come from Bay Street.

Give the poor a tax break.

“I say, ‘Why don’t you cut the taxes of the most overtaxed people?’ It isn’t Ed Clark,” the Toronto-Dominion Bank CEO said in an interview earlier this year. “It’s the people at the low end, because they face the highest marginal tax rates.”

Continue reading

Skyrocketing real estate in Toronto’s wealthy enclaves endangering economic diversity

Photo by Deborah Baic/The Globe and Mail

Tuesday, December 21, 2010 – Globe and Mail
ANNA MEHLER PAPERNY

Growing up the northwest end of Toronto, Irma Baldanza aspired to live in a place like Lawrence Park.

“I remember driving through areas like Forest Hill and Lawrence Park, where my Dad would point out and say, ‘Look at these beautiful houses,’ that sort of thing,” she said. “Once I got married and we started thinking about owning a home, this is one of the areas we looked at.”

The couple started out with a relatively affordable house on Yonge Street and Blythwood Road in the mid-1980s, moving in 1990 to a red-brick Georgian house they could add on to over the next several years, accommodating a growing family. In the past two decades, Ms. Baldanza has seen the treed neighbourhood become increasingly attractive for wealthy families – and, more recently, developers and investors – drawn to the larger lots and green spaces.

In a city where property is increasingly at a premium, the rarity of a neighbourhood of large lots just blocks away from a major transit artery makes for dramatically increasing property values. It helps to have good schools – both public and private – and engaged residents eager to pitch in for fundraising and beautifying initiatives.

Continue reading