Cornwall - Aug. 15, 2011 - Here we go again. More pressure on our fragile economy. Again, the pressure is coming from outside Canada. The United States of America has just had its credit rating lowered from AAA to AA minus by Standard and Poor’s. That in itself is not the end if the world. It is one agency expressing its opinion on the US ability to pay its debts. The problem lies in the effect this action might have on the American stock market and stock markets around the world, especially here in Canada.
The American economy, along with some European countries’ economies, are not recovering from the recent global recession as quickly as had been expected. Their economies are lethargic. Their employment numbers are not increasing as forecasted. With the exception of the Americans, who announced the creation of 112,000 jobs in July there is very little good news. Stock markets, including ours here in Canada, are down considerably because of these problems. Most countries, with the exception of Canada, are having a difficult time coming out of the global recession.
We are very fortunate here in Canada. Our economy has grown for seven quarters in a row. We have created 600,000 net new jobs in the past 24 months. During the month of July, 7,000 net new jobs were created. The most encouraging statistic about our employment numbers for July is that the private sector hired 95,000 new workers. Our unemployment rate has dropped from 7.8% in January to 7.2% in July. I truly believe our Economic Action Plan introduced in 2008 is working.
However, as soon as I list all the progress we have made, I have to express a warning of caution. Our recovery is fragile, very fragile. And we are at the mercy of other world economies. Just as the global recession began outside Canada's shores, so can we get caught up in outside influences again. That is why we must continue with the next phase of Canada's Economic Action Plan. We must stay the course with our prudent low tax plan that will encourage economic growth and create even more jobs.
Member of Parliament