Chapter 6 Media Article

B.C. outperforms nation in disposable income

The Business Council of B.C. reported recently that British Columbians are currently receiving the biggest gains in disposable income in nearly two decades. Personal consumption accounting for nearly 65% of the provincial economy, climbed up 5.3% last year. The provincial economy expanded by 3.6 % after inflation, which is extending the strongest expansion in the last three decades. British Columbia is ranked second to Alberta in terms of boosting real gross domestic product last year and easily beat the national growth rate for the fifth straight year. For British Columbians, this means higher income and increased spending. Even after inflation, British Columbians are enjoying the largest increases in real increases in disposable income over the past three years. Strong job and income growth, positive business investment, large infrastructure projects, and the 2010 Olympics is expected to support household consumption. British Columbia is expected to outperform the Canadian average of disposable incomes even with slightly slower growth. However, I feel that our government will be ready to take on the challenges facing our province.

This is in relation to Chp.6 of disposable income; income that remains in the household after taxes have been paid. After the basic needs of a household is met and the income used to pay off those basic needs such as food, clothing, shelter, bills, disposable income comes in and creates a postive relationship between it and consumption. Disposable income is generally used for consumer spending on products and services of leisure for the income earner.

Hearing about B.C. outperforming the nation in terms of disposable income is surely something I would like to hear often in the years to come, especially within the next decade as I enter the workforce. The B.C. Business Counil caution us that we are experiencing slow export growth; a weakness in the foresty sector. Our provincial economy needs to export more skilled labour or in order to prevent any slowing down of growth. The dependence of BC's economy on natural resources really gets me worried about the future.

http://www.canada.com/vancouversun/story.html?id=e818e927-5900-4c3c-8c33-7e2c296fe972&k=20144