不是people living in the city 不能做主语,而是这里的be easy这个短语通常要求的结构是：主语是后面动词的补足语.如：she is not easy to get along with.or English is easier to learn.这种结构也可以改成不定式结构.it is not easy to get along with her.or it is easier to learn English.
依据此,上面的句子最好改为：no one can deny that it is easier for people living in the city to get news or a good education.