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Debunking the myth of the ‘new economy’

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5 minute read

From Resource Works

Where the money comes from isn’t hard to see – if you look at the facts

In British Columbia, the economy is sometimes discussed through the lens of a “new economy” focused on urbanization, high-tech innovation, and creative industries. However, this perspective frequently overlooks the foundational role that the province’s natural resource industries play in generating the income that fuels public services, infrastructure, and daily life.

The Economic Reality

British Columbia’s economy is highly urbanized, with 85% of the population living in urban areas as of the 2021 Census, concentrated primarily in the Lower Mainland and the Capital Regional District.
These metropolitan regions contribute significantly to economic activity, particularly in population-serving sectors like retail, healthcare, and education. However, much of the province’s income—what we call the “first dollar”—originates in the non-metropolitan resource regions.

Natural resources remain the backbone of British Columbia’s economy. Industries such as forestry, mining, energy, and agriculture generate export revenue that flows into the provincial economy, supporting urban and rural communities alike. These sectors are not only vital for direct employment but also underpin metropolitan economic activities through the export income they generate.

They also pay taxes, fees, royalties, and more to governments, thus supporting public services and programs.

Exports: The Tap Filling the Economic Bathtub

The analogy of a bathtub aptly describes the provincial economy:

  • Exports are the water entering the tub, representing income from goods and services sold outside the province.
  • Imports are the water draining out, as money leaves the province to purchase external goods and services.
  • The population-serving sector circulates water within the tub, but it depends entirely on the level of water maintained by exports.

In British Columbia, international exports have historically played a critical role. In 2022, the province exported $56 billion worth of goods internationally, led by forestry products, energy, and minerals. While metropolitan areas may handle the logistics and administration of these exports, the resources themselves—and the wealth they generate—are predominantly extracted and processed in rural and resource-rich regions.

Metropolitan Contributions and Limitations

Although metropolitan regions like Vancouver and Victoria are often seen as economic powerhouses, they are not self-sustaining engines of growth. These cities rely heavily on income generated by resource exports, which enable the public services and infrastructure that support urban living. Without the wealth generated in resource regions, the urban economy would struggle to maintain its standard of living.

For instance, while tech and creative industries are growing in prominence, they remain a smaller fraction of the provincial economy compared to traditional resource industries. The resource sectors accounted for nearly 9% of provincial GDP in 2022, while the tech sector contributed approximately 7%.

Moreover, resource exports are critical for maintaining a positive trade balance, ensuring that the “economic bathtub” remains full.

A Call for Balanced Economic Policy

Policymakers and urban leaders must recognize the disproportionate contribution of British Columbia’s resource regions to the provincial economy. While urban areas drive innovation and service-based activities, these rely on the income generated by resource exports. Efforts to increase taxation or regulatory burdens on resource industries risk undermining the very foundation of provincial prosperity.

Furthermore, metropolitan regions should actively support resource-based industries through partnerships, infrastructure development, and advocacy. A balanced economic strategy—rooted in both urban and resource region contributions—is essential to ensure long-term sustainability and equitable growth across British Columbia.

At least B.C. Premier David Eby has begun to promise that “a new responsible, sustainable development of natural resources will be a core focus of our government,” and has told resource leaders that “Our government will work with you to eliminate unnecessary red tape and bureaucratic processes.” Those leaders await the results.

Conclusion

British Columbia’s prosperity is deeply interconnected, with urban centres and resource regions playing complementary roles. However, the evidence is clear: the resource sectors, particularly in the northern half of the province, remain the primary engines of economic growth. Acknowledging and supporting these industries is not only fair but also critical to sustaining the provincial economy and the public services that benefit all British Columbians.

Sources:

  1. Statistics Canada: Census 2021 Population and Dwelling Counts.
  2. BC Stats: Economic Accounts and Export Data (2022).
  3. Natural Resources Canada: Forestry, Mining, and Energy Sector Reports.
  4. Trade Data Online: Government of Canada Export and Import Statistics.

Business

Major Projects Office Another Case Of Liberal Political Theatre

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From the Frontier Centre for Public Policy

By Lee Harding

Ottawa’s Major Projects Office is a fix for a mess the Liberals created—where approval now hinges on politics, not merit.

They are repeating their same old tricks, dressing up political favouritism as progress instead of cutting barriers for everyone

On Sept. 11, the Prime Minister’s Office announced five projects being examined by its Major Projects Office, all with the potential to be fast-tracked for approval and to get financial help. However, no one should get too excited. This is only a bad effort at fixing what government wrecked.

During the Trudeau years, and since, the Liberals have created a regulatory environment so daunting that companies need a trump card to get anything done. That’s why the Major Projects Office (MPO) exists.

“The MPO will work to fast-track nation-building projects by streamlining regulatory assessment and approvals and helping to structure financing, in close partnership with provinces, territories, Indigenous Peoples and private investors,” explains a government press release.

Canadians must not be fooled. A better solution would be to create a regulatory and tax environment where these projects can meet market demand through private investment. We don’t have that in Canada, which is why money has fled the country and our GDP growth per capita is near zero.

Instead of this less politicized and more even-handed approach, the Liberals have found a way to make their cabinet the only gatekeepers able to usher someone past the impossible process they created. Then, having done so, they can brag about what “they” got done.

The Fraser Institute has called out this system for its potential to incentivize bribes and kickbacks. The Liberals have such a track record of handing out projects and even judicial positions to their friends that such scenarios become easier to believe. Innumerable business groups will be kissing up to the Liberals just to get anything major done.

The government has created the need for more of itself, and it is following up in every way it can. Already, the federal government has set up offices across Canada for people to apply for such projects. Really? Anyone with enough dollars to pursue a major project can fly to Ottawa to make their pitch.

No, this is as much about the show as it is about results—and probably much more. It is all too reminiscent of another big-sounding, mostly ineffective program the Liberal government rolled out in 2017. They announced a $950-million Innovation Superclusters Initiative “designed to help strengthen Canada’s most promising clusters … while positioning Canadian firms for global leadership.”

That program allowed any company in the world to participate, with winners getting matching dollars from taxpayers for their proposals. (But all for the good of Canada, we were told.) More than 50 applications were made for these sweepstakes, which included more than 1,000 businesses and 350 other participants. In Trudeau Liberal fashion, every applicant had to articulate how their proposal would increase female jobs and leadership and encourage diversity in the long term.

The entire process was like one big Dragon’s Den series. The Liberals trotted out a list of contestants full of nice-sounding possibilities, with maximum hype and minimal reality. Late in the process, Minister of Innovation, Science and Industry Navdeep Bains picked the nine finalists himself (all based in cities with a Liberal MP), from which five would be chosen.

The alleged premise was to leverage local and regional commercial clusters, but that soon proved ridiculous. The “Clean, Low-energy, Effective and Remediated Supercluster” purported to power clean growth in mining in Ontario, Quebec and Vancouver. Not to be outdone, the “Mobility Systems and Technologies for the 21st Century Supercluster” included all three of these locations, plus Atlantic Canada. They were only clustered by their tendency to vote Liberal.

Today, the MPO repeats this virtue-signalling, politicking, drawn-out, tax-dollar-spending drama. The Red Chris Mine expansion in northwest British Columbia is one of the proposals under consideration. It would be done in conjunction with the Indigenous Tahltan Nation and is supposed to reduce greenhouse gas emissions by 70 per cent. That’s right up the Liberal alley.

Meanwhile, the project is somehow part of a proposed Northwest Critical Conservation Corridor that would cordon off an area the size of Greece from development. Is this economic growth or economic prohibition? This approach is more like the United Nations’ Agenda 2030 than it is nation-building. And it is more like the World Economic Forum’s “stakeholder capitalism” approach than it is free enterprise.

At least there are two gems among the five proposals. One is to expand capacity at the Port of Montreal, and another is to expand the Canada LNG facility in Kitimat, B.C. Both have a market case and clear economic benefits.

Even here, Canadians must ask themselves, why must the government use a bulldozer to get past the red tape it created? Why not cut the tape for everyone? The Liberals deserve little credit for knocking down a door they barred themselves.

Lee Harding is a research fellow for the Frontier Centre for Public Policy.

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‘Taxation Without Representation’: Trump Admin Battles UN Over Global Carbon Tax

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From the Daily Caller News Foundation

By Melissa O’Rourke

The Trump administration is fighting to block a global carbon tax that a United Nations (UN) agency is attempting to pass quietly this week.

The International Maritime Organization (IMO), a UN body based in London, is meeting this week to adopt a so-called “Net-Zero Framework,” which would levy significant penalties on carbon dioxide emissions from ships that exceed certain limits. The Trump administration argues the proposal could raise global shipping costs by as much as 10%, ultimately driving up prices for American consumers.

“President Trump has made it clear that the United States will not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people,” Secretary of State Marco Rubio, Secretary of Energy Chris Wright and Secretary of Transportation Sean Duffy said in a joint statement Friday.

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“The Administration unequivocally rejects this proposal before the IMO and will not tolerate any action that increases costs for our citizens, energy providers, shipping companies and their customers, or tourists,” the cabinet secretaries wrote.

The proposed tax is part of the IMO’s broader goal to bring global shipping to net-zero emissions “by or around” 2050. Qualifying ships that fall short of emissions targets would face taxes ranging from $100 to $380 per ton of CO2.

Notably, the tax would be paid directly by shipowners rather than governments.

The Net-Zero Framework could generate between $11 billion and $12 billion annually from 2028 through 2030, paid into a UN-controlled fund, according to University College London. Meanwhile, other estimates warn that if the global fleet misses the IMO’s targets by even 10%, the annual cost of emissions could climb to $20 to $30 billion by 2030 and potentially exceed $300 billion by 2035.

Some critics equated the proposal to “taxation without representation,” noting that an unelected committee would have the authority to set and potentially raise the tax.

The Trump administration is urging member states to reject the proposal and has threatened retaliatory measures against countries that support it. These include investigations into anti-competitive practices, visa restrictions for maritime crews, commercial and financial penalties, higher port fees for ships tied to those nations, and possible sanctions on officials promoting climate policies.

“The Trump administration is right to draw a hard line against the UN’s latest scheme to export its climate agenda through global taxes and trade barriers,” Jason Isaac, CEO of the American Energy Institute, told the Daily Caller News Foundation.

Isaac said the proposed carbon tax, along with other measures — including the EU’s Corporate Sustainability Reporting Directive, which requires companies to disclose environmental and social impacts — “represent an alarming attempt to impose costly, extraterritorial regulations on American businesses and consumers.”

“These measures threaten U.S. sovereignty, inflate energy and transport costs, and weaponize climate policy as a tool of economic coercion,” Isaac said. “The United States must not tolerate foreign governments using environmental pretexts to dictate how we trade, build, and move goods. President Trump’s firm stance puts American workers and energy security first, where they belong.”

Steve Milloy, senior fellow at the Energy & Environment Legal Institute, also commended the administration’s efforts to block the UN measure.

“Not only does [Trump] oppose the UN carbon tax, but he has instructed his administration to take action against nations that try to implement it against the U.S.,” Milloy told the DCNF. “I am simply in awe of his commitment to ending the international climate hoax, which has long been aimed at stealing from and otherwise crippling our country’s economy and national security.”

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