Posted on March 19, 2009
One quarter of British Columbians expect their personal financial status to improve next year, according to yesterday’s Mustel Poll, reported on page D2 of the Vancouver Sun. Only 16 percent foresee a decline in personal income and a full 56 percent expect no change.
Scotia Economics, however, is predicting the BC economy will contract by two percent next year, according to a Sun story two pages later. Central 1 Credit Union chief economist Helmut Pastrick is even gloomier, claiming declining construction spending will force BC to the “first nominal decline in its economy since 1961.”
That contraction will a serious hit for the 16 percent expecting a decline in personal income, if they take it all themselves. Perhaps they’ve been spending too much time thinking like former Bank of Canada president David Dodge, who tells the Globe that “Canada and the world are facing a long and deep recession that will fundamentally alter the nature of capitalism.” Or perhaps they have it right and the rest of the Mustel respondents are dreaming.