The Dryden Observer

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Recession hot topic as election looms

Chris Marchand

Chris Marchand served as editor of the Dryden Observer from August 2009 to April 2018.

By Michael Christianson

Last week, Bank of Canada governor Stephen Poloz trimmed the benchmark lending rate by a quarter point to 0.5 per cent, it was the second time this year the Bank of Canada had dropped the rate to stimulate the economy, and slashed the central bank’s growth outlook for the remainder of 2015. The bank effectively confirmed suspicions that the economy entered a recession by noting in a statement “real GDP is now projected to have contracted modestly in the first half of the year.” They also stated that “The bank’s estimate of growth in Canada in 2015 has been marked down considerably from its April projection.”

Liberal candidate for the Kenora riding Bob Nault saw the moves by the Bank of Canada as a clear sign that change is needed.

“The Conservative government has mismanaged both the local and Canadian economy,” said Nault. “Locally we are seeing unemployment numbers close to 13 per cent and nationally we know that we are in a recession. The concern I’m hearing from people in our riding is that from the economic perspecitive, our region is suffering. Northerners want their children to find jobs and be successful in their hometowns. Right now, that’s just not the case. Too many people are being forced to move away and that shouldn’t be happening. If I am elected I am committed to developing a new strategy to create employment in our riding.”

Kenora MP Greg Rickford says the government has given unprecedented investments to ensure community infrastructures meet the needs of emerging opportunities. He also said the current recession is the result of a global economy.

“Since the depth of the recession 1.2 million net new jobs have been created in Canada,” said Rickford “These are overwhelmingly full-time, private sector jobs in high-wage industries. While Canada is not immune to a fragile global economy, under the leadership of Prime Minister Stephen Harper, we have weathered this economic instability with a plan of low taxes, a balanced budget, economic growth, and benefits provided directly to families.”

The economy shrank for at least four months in a row at the start of the year, the first time that has happened since the 2008-09 crisis.

 

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