To listen to the BC Liberals talk, everything was going swimmingly when they handed over the keys to power in 2017.
But as it turns out like everything, the truth was a lot different than the rhetoric.
The BC Liberals would claim success on the real estate front except the fact that their industry reforms in the early 2000’s led to the outrageous shadow flipping and affordability issues the lower mainland now faces. It’s taken a speculation tax and re-regulation to partially slow down an overheated market.
The motivation was obvious. When homes and property is sold, they pay a property transfer tax that amounts to billions in provincial revenue that doesn’t have to come from income tax or sales tax. The problem with this scenario is that it pushed real estate prices into the stratosphere with hyperinflation increases that all but ruled out home ownership for average people.
By the time the BC Liberals reacted and reigned in the shadow flipping cash cow they created, the damage was done.
What the BC Liberals never considered is that for the economy to function, you need your blue collar, front line workers an ability to live and work in the economy they’re supposed to provide services into.
Nobody can afford to live in Vancouver unless you’re well above $150k a year income level. Imagine trying to operate a restaurant where you cannot hire cooks or servers because they can’t afford rent in the area they’d need to work in, and the prevailing wage structure doesn’t come close to helping them.
The BC Liberals created a 1% economy that catered to the top tier and ignored everyone else.
The downside that nobody is talking about here is that eventually the real estate market will crash out unless there’s some intervention to let the steam out slowly. A crash here triggers a recession.
How is this related to the BC Liberals mishandling of ICBC? It’s the same pandering to their well financed benefactors. But instead of big real estate and big developers, it’s trial lawyers.
It’s the same re-jig of regulations that opened the door for friends to make a lot of money while ignoring the potential damages it causes.
In the case of ICBC, the BC Liberal changes allowed for more litigation and court fighting which amplified legal fees and payouts; all of which is covered by ratepayers premiums.
What the BC Liberals did, instead of taking the extra revenue from a property transfer tax, is they scooped reserve cash from ICBC for the same reason. It wasn’t a sales or income tax.
In hauling money out of crown corporations and cashing in the windfall from a white-hot real estate market, the government was taking in $3-4 billion per year that was unrelated to the performance of the economy, and literally it was unsustainable.
They were warned on ICBC. They chose to ignore it.
Fast forward to the current moment. The BC Liberals are spending heavily as opposition party in their chosen social media venues to attack the NDP over ICBC.
What kind of idiots do they take us for?
The NDP is trying to navigate a path to repair things the BC Liberals willingly broke. And they’re doing so while simultaneously fighting legal challenges by the benefactors who’re seeing their gravy train dry up.
Well I’ve got news for you. My ICBC premiums are for my protection, so that I’m insured while driving my vehicle; no matter what happens. It’s not the BC Liberal money tree they can freely pluck from because of their own financial incompetence.
The NDP might not be perfect nor get everything right. But I appreciate that they’re trying to fix what was broken and are moving the ball forward.
So while this process might be awkward and imperfect, I’ll gladly vote for the NDP in the next election for attempting the right thing.
The last thing BC needs is a return to office, the BC Liberals who deliberately and willingly tried to break and vandalize the things we hold dear. May they never see the inside of the halls of power again.