Both BC election platforms face economist criticism as 'lose-lose' budget strategies

Both the BC NDP and BC Conservatives face serious economic criticism over their election platforms just days before Saturday's vote, with a UBC business professor calling the costed plans a "lose-lose situation."

Tom Davidoff, an associate professor at UBC's Sauder School of Business, says the NDP's promise to cap grocery prices is "very troubling." Price controls risk the same outcome seen in Eastern Europe: "You tell people, 'Hey, I know tomatoes cost you $1.50, but you have to charge a $1 per tomato.' Then nobody's going to sell tomatoes, and that is a big problem."

The NDP platform projects a deficit reduction of $2 billion over two years through raising taxes on higher-income earners, revenue from approved resource projects including LNG Phase 2, the grocery price cap, and an increase to the speculation and vacancy tax on empty homes and condos. BC faces a projected deficit of nearly $14 billion.

The Conservative platform, released less than a week before voting, promises a $1,000 tax cut for most workers. But Davidoff says those revenue projections rest on assumptions that lack support.

"The BC Conservatives' approach to our deficit is that the 'growth fairy' is going to take care of everything," Davidoff said. The tax cut, he added, is "like giving out free money." On the speculation and vacancy tax increase, he warned: "That's telling investors in real estate that if things go badly, we're going to kick you when you're down."

Davidoff's assessment aligns with reporting from HighOnCity on October 19, which found the Conservative platform assumes higher growth rates than most forecaster predictions.

"This has not been pretty to watch. Essentially, it is a competition between, cross your fingers and hope you're not on the wrong side of the Laffer curve," Davidoff said.