April 16, 2009
Today, the NDP sunk to a new level of dishonesty by trying to claim that B.C.’s economy actually performed well in the 1990s. Let’s look at the facts behind the NDP’s spin on the stats:
THE CLAIM: “Under the NDP government (1991-2001), average annual economic growth was 2.8 per cent, compared to 2.6 per cent under the Campbell Liberals.”
OUR RESPONSE: THIS IS SIMPLY NOT TRUE
THE FACTS
- According to Statistics Canada, B.C.’s average economic growth under the NDP (1991 -2001) was actually 2.5 per cent, NOT 2.8 per cent as the NDP claim.
- This average growth was 11 per cent below average national GDP growth of 2.8 per cent – and they were consistently below the national growth rate for the last half of the 1990s.
- Per capita GDP growth during the 1990s in B.C. was actually the worst in Canada.
- This performance reached a new low in 1998 when B.C.'s GDP growth dropped to the worst among the provinces.
- To compare, in 2001 the BC Liberals inherited the second-worst GDP growth rate in the country.
- Average annual economic growth under the BC Liberals has been 3.2 per cent – 28 per cent higher than under the NDP.
- This is 23 per cent above the national average GDP growth of 2.6 per cent over that same period, and since 2002 B.C.’s growth has been above the national average every year.
- The Conference Board of Canada predicts B.C. will lead the country next year with GDP growth of 4.3 per cent.
Source: Statistics Canada
NDP CLAIM: “The NDP created 344,100 new jobs (22 per cent increase), compared to the Campbell Liberal's 323,700 (17 per cent increase)”
OUR RESPONSE: THIS IS MISLEADING
THE FACTS:
- The NDP is comparing job creation over a 10-year time horizon to job creation over an eight-year time horizon, instead of average annual growth.
- The average annual average employment growth was two per cent under the NDP.
- In contrast, average annual employment growth under the BC Liberals has been 2.3 per cent – 15 per cent higher than under the NDP.
- Furthermore, B.C.’s average unemployment rate under the NDP was 8.6 per cent, almost 40 per cent higher than the average rate under the BC Liberals (6.3 per cent).
- Under the BC Liberals, B.C. has had some of the lowest monthly unemployment rates since records started being kept 30 years ago.
- For the last three full years (2006 through 2008), unemployment has been under five per cent. The NDP never went below eight per cent for the entire 1990s.
Source: BC Stats Statistics Canada
NDP CLAIM: “The wealthier you are in British Columbia, the more you have benefitted from BC Liberal tax cuts.”
OUR RESPONSE: FINALLY, THE TRUTH – THE NDP DOES NOT SUPPORT TAX CUTS.
THE FACTS:
- After promising not to raise taxes during the 1991 election campaign, the NDP raised taxes by nearly $2 billion in their first two years. By 1994, B.C. had the highest marginal income tax rates in North America.
- As a result, per capita Real Disposable Income dropped every year between 1991 and 1996 and was never regained during their term.
- In fact by 2000, the last full year of the NDP government, British Columbians per capita real disposable income was actually $113 lower than in 1991.
- To compare, since 2001 we have cut taxes over 120 times. B.C.’s personal income tax rate in now the lowest in Canada on income up to $116,000.
- Over 250,000 earners now pay no income taxes at all. Our remaining earners have seen 30-75 per cent reductions depending on their income – with the highest percentage reduction going to the lowest earners.
- The result, according to BC stats, is that disposable income has increased every year since 2001, and by nearly 20 per cent – or nearly $4,000 per person – between 2001 and 2007.
Source: BC Stats
