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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

Kennedy to cut 10,000 HHS employees to reduce ‘bureaucratic sprawl’

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From The Center Square

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The changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees.

Robert F. Kennedy Jr. announced a significant restructuring of the U.S. Department of Health and Human Services on Thursday in a move to streamline the huge federal agency and cut costs.

Kennedy plans to trim about 10,000 employees from the agency’s workforce in addition to employees who left as part of a Deferred Resignation Program, similar to a buy out, earlier this year. The move is expected to save about $1.8 billion.

Kennedy said the restructuring won’t affect the agency’s critical services. When combined with HHS’ other efforts, including early retirement, the changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees. The restructuring will also align the department with Kennedy’s goals for a healthier U.S. population.

“We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” Kennedy said. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

Kennedy also said the restructuring of the department’s 28 divisions will get rid of redundant units, consolidating them into “15 new divisions, including a new Administration for a Healthy America, or AHA, and will centralize core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy.” Regional offices will be reduced from 10 to 5.

The overhaul will implement the new “HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins. These priorities will be reflected in the reorganization of HHS.”

Kennedy also said the restructuring would improve taxpayers’ experience with HHS by making the agency more responsive and efficient. He also said the changes would ensure that Medicare, Medicaid, and other essential health services remain intact.

The Administration for a Healthy America will combine multiple agencies – the Office of the Assistant Secretary for Health, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, Agency for Toxic Substances and Disease Registry, and National Institute for Occupational Safety and Health — into a single, unified entity, Kennedy said.

The Centers for Disease Control and Prevention will get the Administration for Strategic Preparedness and Response, which is responsible for national disaster and public health emergency response.

“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” Kennedy said. “This overhaul will be a win-win for taxpayers and for those that HHS serves.”

Among the cuts: The U.S. Food and Drug Administration will shed about 3,500 full-time employees. Officials said the reduction won’t affect drug, medical device, or food reviewers, nor will it impact inspectors. The CDC will drop about 2,400 employees. The National Institutes of Health will cut about 1,200 employees. The Centers for Medicare & Medicaid Services will cut about 300 employees. The reorganization won’t affect Medicare and Medicaid services, officials said.

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Feds Spent Roughly $1 Billion To Conduct Survey That Could’ve Been Done For $10,000, Musk Says

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From the Daily Caller News Foundation

By Hailey Gomez

The Department of Government Efficiency’s (DOGE’s) Elon Musk said Thursday on Fox News that the group found the federal government spent almost $1 billion on a survey that could’ve only cost thousands.

Following President Donald Trump entering office in January, his administration pushed for Musk and DOGE to comb through the government’s spending and identify potential cuts to save taxpayer dollars. On “Special Report with Bret Baier,” the Fox News host sat with Musk and his DOGE team and asked the billionaire what has been the most “astonishing thing” he’s witnessed so far in this process.

“The sheer amount of waste and fraud in the government,” Musk said. “It is astonishing. It’s mind-blowing. We routinely encounter waste of a billion dollars or more, casually.”

“For example, like the simple survey that was literally [a] 10 questions survey. You could do it with SurveyMonkey, [which] would cost about $10,000. The government was being charged almost a billion dollars for that,” Musk added.

WATCH:

Baier could be seen interrupting Musk as he sounded astonished, later asking, “For just a survey?”

Musk responded and said the survey was essentially pointless as it had no “feedback loop.”

“A billion dollars for a simple online survey — ‘Do you like the National Park?,’ and then there appeared to be no feedback loop for what would be done with that survey,” Musk said. “So the survey would just go into nothing. It was insane.”

In February, Democrats’ opposition to Musk’s and DOGE’s place in the Trump administration began to ramp up after the billionaire announced during an X discussion that he and the president had agreed to upend the U.S. Agency for International Development (USAID). Musk warned the agency was wasting billions of taxpayer dollars.

Some of the programs funded through USAID had not only attempted to advance a radical leftist agenda worldwide, but some had a high risk of landing in the Taliban’s hands and also aiding an organization linked to the Wuhan Institute of Virology.

Baier told Musk how he and DOGE technically had 130 days as a “special government employee,” asking if he believes he will be able to complete his task in the time frame allotted.

“I think we will have accomplished most of the work required to reduce the deficit by a trillion dollars within that time frame,” Musk said.

“We are cutting the waste and fraud in real time. So every day like that passes, our goal is to reduce the waste and fraud by $4 billion a day, every day, seven days a week. So far we are succeeding,” Musk added.

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