By Chris Beach

Northern View

The Northern View #51: An Economic Storm is Coming

Nov 6, 2024 | 10:36 AM

Rapidly expanding government jobs at the expense of almost zero private sector job growth, financed on the public credit card, at almost 5 billion dollars a year in interest payments, with plans for more record deficits and debt, has got BC in an economic downspin that’s likely to end up in a full-blown hurricane.

In addition to what many have called reckless government spending and a lack of fiscal responsibility, many other economic indicators are flashing red for the province. Major industrial projects like LNG Canada and Site C Dam are completed, ending thousands of high-paying construction jobs.

Unemployment is rising, and inflation and the cost of living including gas and grocery costs are higher in BC than in the rest of Canada.

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Rising bankruptcies due to sky-rocketing insurance bills and the general cost of doing business in BC, have only exacerbated shrinking government coffers due to lower commodity prices.

And Prince George and the North could likely get hit harder than everywhere else. Rock bottom lumber prices, US duties, and decades of forestry mismanagement by both the NDP and BC Liberal governments have left the forestry industry on life support.

To make matters worse for Prince George we are about to see a precipitous decline in international students who have fueled the city economy for several years and have kept most big box, restaurant chains and small businesses afloat with labour at the same time.

Last but not least, add in our shrinking industrial tax base and a rapidly aging city infrastructure, our monthly municipal tax hit will only get worse… much worse. So this newly elected provincial government needs to act now to get our fiscal house in order and grow the private sector economy as much as possible to soften the downturn.

Otherwise, we better buckle-up, because we’re going to be in for a crazy ride downhill. I’m Chris Beach and this is the Northern View.

Editors note: The views expressed in this column do not necessarily represent the views of Pattison Media.