Saturday, January 22, 2011

What is a job?

I'm not a Latin America expert by any means, but this is the eighth country in the region that I've visited and one thing that's struck me over and over is that despite all of these countries being considerably worse off economically than Canada, I hardly ever see people begging for money on the street. And those that do are almost always old, disabled, or young mothers with children. This is in direct contrast to Toronto, where panhandling is quite common.

One reason that I've always felt is at least partly responsible for this is the existence of the informal economy. Live in Peru and don't have a job? Then you might have a kiosk on the street selling chocolate bars and other snacks. Or a stand selling cheap watches and TV remotes. If you can't afford a kiosk or stand, you might carry candies around on a tray. If you don't have a tray, carry what you can in your hands.



Would this work in Canada? Should it? I'm not suggesting "put the bums to work" a la Mike Harris: I'm just wondering if people who had some kind of job would feel better about themselves than those who just asked for money. I expect that regulation and taxes would bog it down. I don't know how far outside the tax system workers of this sort are here in Peru. People who have kiosks have to pay the city a fee for the space, but I don't know if they pay taxes otherwise.

The Gamarra district in Lima that I wrote about earlier is a step up from the sort of "workplaces" that I referred to above, but it's still an example of how mini-businesses can work. We think of a store as being of a certain size, but why couldn't it be the size of a walk-in closet?

Discuss!

2 comments:

labradort said...

When I think of anything on this scale currently operating in Toronto, it is generally regulated out of concern there would be too many in one area. Buskers and sausage carts were once free to set up where ever there would be "business", but are now licensed and limited in quantity that can exist in each zone. The emergence of squeegy kids in Canadian cities caused some unease and was made illegal each place I know of.

I guess you could say the middle class don't want to see this. They would prefer to believe there are very few people making a subsistence living and more people working in tall office buildings.

One big difference is climate. Kensington Market or farmer's markets are likely the closest we have to these types of street vendor, and they need a warm building for half of the year.

It is hard to tell whether the climate or the cultures are the difference. When I travelled in the 80's I concluded the values of socialism and social welfare corresponded to the countries with colder climate. They knew if they didn't provide for everyone there would be frozen bodies on the sidewalk in the morning (although it might be the case that people in Scarborough don't mind this).

El Gallo said...

There are some things that should definitely be regulated, such as selling food on the street, but not the kind of stupid regulation that basically prevents anyone from selling anything other than sausages in Toronto.

The middle classes would see informal commerce as messy, and it is, but no more annoying (or disheartening) than panhandling. I think the real bugaboo would be taxes--the government would assume that these people would pay no tax--probably right--and come down hard. Also "legitimate" businesses would complain that they were losing out.

The problem with squeegeeing was that it was a "push" business that no one wanted. Down here you get guys juggling when the light turns red and then asking for money. I haven't noticed any obnoxious behaviour. Anyway, replace that by selling some non-perishable items on a sidewalk stand and there might be less scope for "anti-social" behaviour.