McGuinty's New Economic Plan- Legalized Prostitution?

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       The weight of Ontario's giant budget deficit, has Ontario's Liberal government planning serious austerity measures to resuscitate the lagging economy and restore confidence amongst its creditors. The Ontario government has a $15.3 billion[i] budget shortfall and there are only so many spending measures voters will accept and the Ontario economy can sustain. What the Ontario economy really needs is growth and that means new industries and more workers. The Superior Court of Ontario may have established both with the Bedford ruling which for now deems laws impinging the operation of common bawdy-houses (section 210 of the Canadian Criminal Code)[ii] and profiting from the avails of prostitution (section 212(1)(j) of the Criminal Code of Canada)[iii] as unconstitutional. What if the province of Ontario profited from these avails?

          Even if the province did not formerly step in to open and administer sexual service, like its other operations as a conveyor of vice through the Ontario Lottery and Gaming Corporation, the economic impact of a change in the government's policy on prostitution could have a considerable effect on the public coffer. Consider the businesses it could produce. Many women and some men could exit the shadows of their profession and escape the thumb of violent men and criminal organizations[iv] to freely engage in meaningful commerce, pay taxes, incorporate, and spurn auxiliary spending on security, accounting, legal fees, advertising and real estate etc[v]. Existing businesses could benefit, provided they don’t have some moral prerogative that precludes their participation in the flesh economy.

          It is difficult to assess the exact number of persons involved in the prostitution industry given its illicit nature but surely a demand exists. A 1998 Gallup Poll suggested 7% of Canadian men have paid for sex at least once in their life[vi]. In 2010 there were about 4122700 men between 20 and 64 in Ontario[vii], if the Gallup poll is accurate and true for all males in Ontario that is around 288589 males willing to pay for sex and potentially steer Ontario towards prosperity.

          Canadian crime statistics in Canada from a 2007 report show 5,679 offences in 2006 (17/100,000 population), and 4,724 in 2007 (14)[viii]. Now these stats largely deal with street prostitution and that is believed to reflect more on the procedural policies of police departments rather than actual numbers. In 1995, almost all of the 7,165 prostitution incidents reported by police nationally involved communicating to buy or sell the services of a prostitute (92%). The remaining incidents concerned procuring (5%) or bawdy-house (3%) offences[ix].  About 10% to 33% of all prostitutes have been estimated to work primarily outside, and are thus more visible[x]. The 2006 Subcommittee on Solicitation estimated 5-20%[xi]. These numbers, although poorly, demonstrate the extent of individuals involved could be great but also points to the potential savings involved with overlooking this type of behavior. The costs associated with criminal trials and the imprisonment of convicted sex workers could also be added to Mr. McGuinty's list of governmental spending costs.


[i]Lahey, Liam. Ontario budget 2012: Slay $15B deficit in five years,  Retrieved April 4, 2012
[ii] Canadian Criminal Code http://laws-lois.justice.gc.ca/eng/acts/C-46/page-104.html#h-70 Retrieved April 4, 2012
[iii] Canadian Criminal Code Retrieved April 4, 2012
[iv] This allegation is debatable. See Ch 2. F"Report of the Subcommittee on Solicitation Laws. (2006). "The Challenge of Change: A Study of Canada's Criminal Prostitution Laws." 6th Report of the Standing Committee on Justice and Human Rights". Retrieved April 4, 2012
[v] For detailed although preliminary analysis on the economics of prostitution see Steven D. Levitt and Sudhir Alladi Venkatesh "An Empirical Analysis of Street-Level Prostitution" September 2007. University of Chicago. Retrieved April 4, 2012.
[vi] Gallup Poll 1998, cited in Toronto Star March 9, 1992. Sited in http://www.enotes.com/topic/Prostitution_in_Canada#cite_note-41 Retrieved April 4th 2012.
[vii] Ontario population by five-year age group and gender, selected years       (reference, low and high scenarios) Retrieved April 4, 2012.
[viii] "Canadian Centre for Justice Statistics . Crime Statistics in Canada 2007. Statistics Canada 85-002-X, Vol. 28, no. 7, 2008" (PDF). Retrieved April 4th 2012
[ix] "Canadian Centre for Justice Statistics . Crime Statistics in Canada 2007. Statistics Canada 85-002-X, Vol. 28, no. 7, 2008" (PDF). Retrieved April 4th 2012.
[x] 5.0 5.1 5.2 5.3 5.4 5.5 Frances M. Shaver. "Shaver F. Prostitution. Canadian Encyclopedia". Thecanadianencyclopedia.com. Retrieved 2010-10-22. From http://www.enotes.com/topic/Prostitution_in_Canada#cite_note-shaverCE-. Retrieved April 4th 2012
[xi] Canadian Centre for Justice Statistics . Crime Statistics in Canada 2007. Statistics Canada 85-002-X, Vol. 28, no. 7, 2008" (PDF). April 4, 2012.

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