Chapter 1 & 2 Media Article

"Education Key to Thwart Looming Labor Shortage", The Province Nov. 1, 2006.

This article suggests that B.C. is highly likely to face a labor shortage as the aging population is heading towards retirement. The consequences of this will have serious effects as there are more people that are retiring than there are entering the work force. It suggests that education is the answer to solving this problem.

Relationship to Ch.1 – scarcity of labor resources, opportunity costs

An important factor to the economic success of B.C. is the fact that it has abundant resources, whether it is land, labor, or capital. But all of these resources are still considered scarce. Our labor resource is scarce in the way that the older generation is retiring, relying on the younger population to support them and our economy. But the problem is that there is a large population of the elderly and a relatively smaller younger population, creating difficulties. The decreasing workforce will place stress on the current workers as they will have to do more work in order to compensate for and attempt to replace the retired workers. There will be a decline in all areas of the economy if there is a lack of workers, such as in research and development, technology, manufacturing, and a vast amount of services that make up our economy. The scarcity of our labor resource will also diminish our capital resource in certain ways. For instance, the money that will need to be used to support services that the elderly need, such as health care. High taxes may need to be put in place to support this. The high standard of living that the residents of B.C. enjoy now will be put at risk due to the simple fact that we just do not have enough people who are able to contribute to our workforce and support the economy. And what about opportunity costs? If we were to pursue education to solve this scarcity problem, we would be giving up possible better alternatives in the process. Time, effort, and money will be given up in direct and opportunity costs to finance and support this decision when we cannot be absolutely sure that education is the answer. What if it only makes things worse? What then?

Personal Reflection

This scarcity of resources affects me in that I am approaching the age in which I am to enter the work force as I am a part of the younger population who will be expected to support the aging population. Pressure will be placed on my generation to do more work for less in return. High taxation rates will further place strain on us workers. Services provided for the younger generation may worsen in an effort to preserve the quality of services for the older. Yet, we do not really have a choice in the matter as the government makes most of the decisions for us, and if it were to come down to a vote, the aging population outnumbers the younger. So, do we just go with the flow then?

Relationship to Ch.2 – supply and demand for education

As previously mentioned, the article suggests that the way to solve a labor shortage will be to pursue education. Demand is becoming increasingly higher for a greater population of immigrants, international students, etc. There is an increase in demand for more students to complete and graduate from high school to ensure more workers to enter the workforce. The need for a post-secondary education is encouraged for both older and younger people in order to enter the workforce or stay in the workforce. Furthermore, there really does not seem to be good substitute for an education, causing competitive spirits to rise as post-secondary openings do have a limit. And, the expectation of a bright future with a successful job and high wages is pushing people to fight for what is seemingly right. With all these demands, what will happen with supply? More and more media and advertisements are attempting to promote more people to move to B.C., and it looks rather successful, as population growth rates seem more than favorable. According to the article, "By 2020, there will be 773,200 more people in B.C. than there were in 2005, representing an 18-percent increase in population." Various post-secondary institutions seem to be 'popping up' constantly, claiming to be having a majority of students successfully enter the workforce. Statistics show that there are increases in overall post-secondary enrolment. All these changes to supply and demand sound good up to a point. But what would happen to the 'value' of the people who actually pursue what is advertised. Currently there is a high demand for education preparing to fill the gaps that will be left by the aging population, thus high post-secondary enrolment already exists, with more and more students entering the same field simultaneously. The downside is that the supply of workers will eventually exceed the demand for workers, possibly resulting in mass unemployment, as the post-secondary degree so highly pursued, becomes a measly piece of paper left unused.

Personal Reflection

The mindset that a post-secondary education is the way to go for high school graduates is a strong belief that is uneasily swayed. After years of a certain degree of 'brainwashing' by the media, schools, and other organizations, I too believe that a post-secondary education is the correct decision. The question is: Would I have made the same decision to pursue a post-secondary education if the media were not involved? Or am I just following popular demands and supplying what the economy wants?