Opinion

A Tyee Series

Reclaiming the Promise of BC

Leaders brag about our quality of life while their policies erode it. Last in a series: 'BC's Broken Economy.'

By Kim Pollock, 17 Jul 2009, TheTyee.ca

Teenagers

BC teens face high child poverty, rock bottom entry wages.

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On Gordon Campbell's watch, British Columbia has developed some very severe long-term economic problems. Even before the 2008 economic meltdown, B.C.'s productivity was declining along with business investment and exports. This helped kill thousands of good-paying jobs in resource industries and manufacturing.

As a result, we have seen a long-term stagnation in real wages and a steady widening of the gap between rich and poor. This is at the root of the mounting levels of poverty and social dislocation we see in British Columbia today.

According to First Call BC, the province's child-poverty rate fell to 13 per cent in 2007 from 16.5 per cent in 2006. Despite the decline, however, the province continued to have the worst child-poverty record across Canada for the sixth consecutive year. The 2007 rate is still one third higher than the national child-poverty rate of 9.5 per cent. There were 108,000 poor B.C. children in 2007 compared to 137,000 in 2006, says First Call.

The overall poverty rate in B.C. for all persons decreased from 13 per cent in 2006 to 11.1 per cent in 2007 but that's still also the worst of any province in Canada.

That situation is made worse by B.C.'s $8 minimum wage. First Call's Adrienne Montani points out that in 2006, both single and two-parent poor families on benefits were struggling to get by on an average annual income more than $11,000 below the poverty line. And more than half of B.C.'s poor children lived in families where the adults worked the equivalent of a full-time, full-year job.

Yet Campbell proudly refused to raise the minimum wage, suggesting that it would kill 50,000 jobs. While his research came straight from the Fraser Institute, there's a wealth of different evidence showing that a minimum-wage raise has little negative impact on employment; in fact, a growing number of studies indicate and many leading economists agree that there might be a net job-creation bias to a minimum-wage raise because low-income families and individuals are likely to spend locally almost all of any increase in incomes they receive.

That's why the economic stimulus benefit from tax cuts for low-income earners is almost three and a half times as great as tax cuts for high-income earners. It's also why U.S. economists have found that income-support programs such as employment insurance and food stamps provide the biggest potential "bang for the buck" of any of President Barack Obama's proposed economic stimulus measures.

Homelessness

The most visible result of poverty is homelessness. The April 2008 regional homeless count found 2,592 people living without homes in Metro Vancouver. Street homelessness rose in every community within the region, though Vancouver and Surrey continue to bear the brunt -- and the tax burden -- of sustaining three-quarters of Metro Vancouver's homeless population, reported the Tyee. The regional total squares with a recent SFU study that estimated province-wide homelessness at up to 15,500.

That number was already likely lower than the true count, according to many housing advocates. It will certainly have risen with the recession and will continue to rise. "The street homeless count really only captures part of the visible tip of the iceberg," says SFU's Michelle Patterson. "We know homelessness goes a lot deeper than that."

In March, auditor general John Doyle reported that in spite of the rising numbers of homeless people, the B.C. government has no clear strategy when it comes to reducing and preventing homelessness. Doyle said the province has failed to take the lead in dealing with an issue that requires a co-ordinated effort by all three levels of government. Doyle said the province's goals and objectives are poorly defined and that means accountability is missing.

This is another example of governments' failure to invest in human services as a means of heading off social problems before they become acute. Canada had one of the best housing programs in the world between the 1970s and 1990s. But when the federal Liberal government pulled out of the program in the 1990s, a national housing crisis began. According to CMHC, in September 2008 the federal government said it would invest more than $1.9 billion over the next five years towards affordable housing.

B.C.'s portion of such a program over the next two years would be approximately $60 million. Canada's Economic Action Plan includes another $2 billion over two years for social housing, with approximately $151 million going to B.C.. But that is much less than the $2.5 billion per year that homelessness activists say is needed immediately.

Quality of life

It's doesn't end with poverty or homelessness. Income is in fact a major determinant of health. About 28 per cent of low-income Canadians report poor health compared to only 6 per cent of wealthy Canadians. The Health Officers Council of B.C. reported last year that 13 per cent of women in the lowest income quartile have heart disease compared to only 4 per cent in the highest income quartile. Similar income gradients are observed for numerous other diseases.

Poverty increases the risk of acute and chronic ill-health, susceptibility to infectious diseases, heart disease, arthritis, stomach ulcers, migraines, mental illnesses and self-destructive coping behaviours. And it becomes an issue of gender equality as well: since more women than men have low incomes, they are more likely to experience poverty-related health problems.

Low income can lead to ill-health through various pathways including limited access to resources necessary to attain and maintain good health (e.g. housing, food, physical activity, safe neighbourhoods, social support and health care) and increased exposure to risk factors such as smoking, physical inactivity, unhealthy foods, stress, and hazardous occupations. Overall, the one-third of wealthiest Canadian women have a life expectancy of 83 years, compared to 81 years for women in the poorest third of the population. A similar income gradient is evident in men's life expectancy: men in the lowest third have a life expectancy of 75 compared to 78 in the highest third.

It's up to us

These are all key issues that the Campbell Liberals continue to ignore. In fact, it's going to get worse when the Liberals' widely-expected budget "rewrite" slashes social services in September.

New Democrats, the labour movement and other opposition forces will need to address these key issues in economic terms over the coming four years. The best approach is one that brings an economic edge to struggles around social justice and human rights. Social justice can only be realistically expected when it is rooted in economic well-being. It is clear that British Columbia is currently not just in a recession, but also in a state of long-term economic decline. Economic decline impacts income distribution, wages and economic opportunities -- without economic prosperity there is no hope of social justice.

During the election, Gordon Campbell suggested that Carole James hasn't the economic experience to govern. What he really meant was not just that women but all working-class and middle-class British Columbians have no right to run the province: in his view, that's the preserve of the business and commercial class which Campbell represents. But be clear: the economy is too important to British Columbians to be left to the business elite, who have in any event not managed it especially well -- whether you measure that by traditional economic measures or the higher standard of social justice, human rights and civil liberties.

Clearly, it's about time we took back British Columbia's economy.  [Tyee]

12  Comments:

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  • Skywalker

    2 years ago

    Well done, Kim!

    This sums it up very well: "the economy is too important to British Columbians to be left to the business elite, who have in any event not managed it especially well -- whether you measure that by traditional economic measures or the higher standard of social justice, human rights and civil liberties".

    Years ago I was having a conversation with a local business type. He was also a member of the Chamber of Commerce and he was railing against a recent minimum wage increase that the government had introduced. After listening for a while to how hard done by he was and how this would effect local small business I asked him, "What percent of your total overhead would this increase amount to?" I knew him pretty well and I new roughly how many employees he had that might be on minimum wage. He blustered and avoided answering the question completely. It wasn't that he didn't know. He knew that if he answered his arguments would fall flat.

    I worst person to have in politics is someone who thinks government is a business. They have no concept of service and services where the bottom line means nothing. We now have Falcon in Healthcare talking about healthcare being run as a business. These guys always confuse essential services to people as a cost that must be reduced in order to show competency. Competency at what, being a human being and looking after the sick?

    These same business elites have created the latest economic crisis, then screamed for taxpayer handouts, while preaching the virtues of the free market system. It is a bit like a car salesman who tells you how reliable the car is and then, when you've agreed to buy, tries to sell you an extended warranty. Hello!

  • Powell river pe...

    2 years ago

    Hats off

    And boy do I need coffee,the hours of painstaking research,the drudgery of perusing the Canwest trash can,pulling out my hair while listening to Bill Good,the Emails,letters to the editor,leaving trails of bread crumbs for the NDP to follow,and.....
    Then there`s the abuse from Wilfred-Jstog and others,boy do I need coffee(hint,hint,wink,nod)and not to mention the "Hiding in Canada" for fear of retribution from the corporation and Campbell`s goon squad,I sleep with one eye open and boy do I like coffee......

    Cheers-Eyes Wide Open

  • Powell river pe...

    2 years ago

    Kim Pollack

    Thanks eh,you put everything together in a tidy little pile,I have sent your presentations around the province,you were pretty good on the John Macolm show yesterday,maybe Vaughn Palmer will put you on the VOICE of BC show on shaw,give him a ring,he might just bite.

    Nothing to add,most here have been beating the drum for years,I look forward to your next assault.

    Cheers-Eyes Wide Open

  • Cynic

    2 years ago

    Good job, Kim. In these

    Good job, Kim. In these articles, and in our society, we can clearly see the results of the elite's successful campaign to preserve their position of power and privilege by keeping the people down. I think it's most important to realise that there is no shortage of money in this world, nor of resources, skill, talent, energy, intelligence. There is simply a group of powerful people who need to be brought down. This is the imperative, the sooner the better.

  • lary waldman

    2 years ago

    doing something about it

    We now have, if you can believe Campbell fixed date elections. I am not so sure about that, but I will give him the benefit of the doubt. Next we need publicly funded elections, where, should you qualify you get the same amount of money as everybody else, (perhaps a small surcharge for people traveling in the North), and you may not spend a penny more. And then for the lobbyist, not allowed on Government property at any time for any reason. Keep their slimy business on their own turf. There has to be rules to follow if the people are indeed going to elect a government that reflects their wishes. This may be a bit of a start.

    Lary Waldman

  • onthebay

    2 years ago

    Without the ability to use

    Without the ability to use credit, previously heavily promoted by banks and credit companies, to purchase everything from the basics to keep body and soul and family together to the indulgent purchase of frivolities a lot of people would have realized they were poor quite a while ago. That we are encouraged to gain economic confidence and hop back on board this consumer debt train with no specific destination except an ever widening gap between the wealthy and the poor is predictable on the part of corporatism - and sad. That the government seems to find no other way but to head in the same direction is even sadder.

    Many people, after a short intake of recession breath, will hop on board this consumer train once again. Some will blissfully blither on believing that everything will be OK -at least for a while as history shows. Others, perhaps those disillusioned with the philosophy of meritocracy, may realize that honesty and hard work doesn’t necessarily translate to personal economic stability let alone prosperity and may push hard against the status quo - even if only prompted by WANTING goodies (regardless of the ability to pay for them). Some will get off the consumer train, whether forced to by low wages or bankruptcy, or by lack of concern or input by governments and corporations (rural and small town), or by the realization of a different approach to life. Whether getting off the consumer train translates to ‘success’ or ‘happiness’ in a world currently heavily psychologically influenced by consumerism is a question only time will answer.

    The current recession is shining a fairly bright spotlight on just how badly off most of us really are - both in terms of economics and resulting social and personal repercussions. Whether we take note of what this light is showing us in the dark alleys and what we do about it will steer where we end up heading. Hopefully, for the sake of future generations, it’s not too late to make some decent choices.

  • Fiat lux

    2 years ago

    The current "recession", or

    The current "recession", or rather depression, would be a good time to rethink and reorganize our economy, because we can not go back to the past years of "boom" without destroying ourselves.

    The world can simply not afford to have imaginary capital created from the air destroy the ecology and concentrate all economic power in the hands of a criminal gang, whether they call themselves polibureaus, or boards of directors.

    Money is part of an economic system, but it is not THE economy and monetary fugures can not be used for economic calculations. It is a fraud to distort reliaties.

    And when we talk about "investments", we should ask by who, from where, how much and for what purpose ?

    Otherwise the word investment means absolutely nothing. Literally millions of jobs could be created with minimum investment, like $15 - 20,000 per job. But not under the present conditions, when some "foreign investors" can wipe out all progress and benefits

    I should, know, because I have done it for many years. I started my first custom furniture business in 1957 with a $500. bankloan, something like $5 to 10,000 in today's terms, and was employing 6 tradesmen within a few weeks.

    Could be done today, but first we have to get rid of NAFTA and the WTO.

    Ed Deak.

  • Dan the socialist

    2 years ago

    Well people got the

    Well people got the government they voted for, the 48-50% that bothered to show up anyway. The libs will also win re election in 2013 unless Ms. James steps down as NDP leader....

  • Camero409

    2 years ago

    Reclaimiing BC

    What can you expect from a government that is more secretive than CSIS and the CIA combined. A premier that is a control freak and a spendthrift all for the glory of Preem Gorodo. A preem that won't look directly into a TV camera because you can tell he's lying by looking at his shifty eyes and seeing his mouth move.

    If he could find a way to glorify himself with funding the homeless and underpriveleged he wouid do it. However it would be only fleeting glory and Gordo likes monuments (Golden Ears, Port Mann, Convention Center, etc.)Like I have said before, grease up because the screwing is going to really hurt now that the budget is in and there is no money (the only ones surprised are the LIbEralS, nudge, nudge, wink, wink).

  • Fish-counter

    2 years ago

    The sunken Queen of the North is a metaphor for the province

    There is no one at the wheel, save a drunken politician, who is not speaking to his partner, owing to a lover's tiff. He is drunk on the bread-and-circus baby formula he was fed as a spoilt child. He is intoxicated with one big idea, at the expense of everything else.

    This government is stripping our parks of rangers and closing them down. If it doesn't ooze Olympic gold, it doesn't count with them. When the games are over, Campbell's dream comes to an end. His ship will sink on its own debt and he will rest 1,200 feet down in waters off Gil Island - we hope.

    As for the economy, he doesn't understand even the most basic principles. He thinks good business is selling BC Rail at bargain prices to his buddies for kickbacks, then destroying the records. He is in contempt of court already.

  • homegrown

    2 years ago

    Gordon Campbell

    It's so obvious that ever since GC got in the quality of life in Vancouver has eroded. He and his policies are the cause of the increase in homelessness. He has made it possible for people to become increasingly enured to the sight of people living in the street and looking in garbage cans for food, and for people to become far more arrogant and concerned with themselves and their welfare than the general good, and I'm sure all of this was an intended result of his policies. I wonder how he can sleep at night, being a person who was born here, grew up here, and no doubt benefited from previously more socially generous and thoughtful governments, he turns his back on all of that and at the same time stabs everyone in the back. It is a real pity~

  • SharingIsGood

    2 years ago

    Thanks, Kim!

    Not only have you made some great points in this series, you have generated a good deal of high level discussion. I will look for future articles penned under your handle.

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