Some
folks have their minds made up and don't want to be confused
by the facts, for the rest the bombardment of election ads
is an attempt to take minds off the facts. Most British
Columbians are worse off than they were in 2001, and many
are no better off than they were in 1991.
Statistics
Canada has two surveys that measure average weekly wages.
The Survey of Payroll employment, Earnings and Hours (SEPH)
uses data that employers submit to Revenue Canada, it goes
back to 1991. Since 1997 the Labour Force Survey (LFS) has
asked a sample of workers what they earn. Economists use
the term "real" when the effect of inflation is
removed from data by dividing by a price index. The graphs
shown here illustrate real wage rates derived by dividing
by the Consumer Price Index for BC with the base of 1992
dollars. In 1992 dollars, average weekly wages in BC were
$560 in January 1991, $584 in January 1997, $583 in January
2001, and $567 in December 2004. In real terms, families
made gains in the 1990s that they then lost in the New Era.
Conclusions
in economics sometimes depend on which data is used and
how it is manipulated. The graph shown here displays both
the SEPH and LFS real wage series from January 1997 through
December 2004. The SEPH series shows relatively stable average
wages from January 1997 through January 2001, and then a
decline. The LFS series shows average real wages at $557
in January 1997, $561 in January 2001 and $564 in December
2004. One way or the other, British Columbians are not seeing
improved incomes. All of the fancy TV ads on earth, with
repetition of a slogan about "working", won't
change the reality that families feel in their household
budgets.