IMF Backs More Stimulus to Help USA’s Slow Recovery

It doesn’t get any better than this. Remember when TIME magizine ran a cluster of articles about how successful the stimulus was? Well, in “IMF Backs More Stimulus to Help Slow US Recovery” you might get a little difference of opinion. Look at these IMF quotes:

“Further decisive action is needed to achieve stable medium-term growth and limit risks of adverse international spillovers.”

But the IMF — after earlier arguing strongly for the US to cut its debt levels — said a bleak economic outlook could make further spending necessary, and could prompt a delay of planned budget cuts.

“Directors saw scope for a smaller up-front fiscal adjustment if downside risks materialize, complemented by measures to bolster medium-term credibility,” the IMF said.

“Private demand has been sluggish, while the unemployment rate has receded only modestly from near post-Depression highs,” the IMF said.

The IMF’s top brass said the recovery was “still dependent on policy support” as economic “risks are elevated and tilted to the downside.”

But, remember, TIME writes that the stiumulus bill was a huge success…

“The unemployment rate is higher than in any postwar period save a brief point in the 1980s, while unemployment duration, the percent of long-term unemployed, and the number of involuntary part-time workers are all at record highs,” the IMF said.

And then there is the ultimate power:

“Directors saw near-term trade-offs between supporting recovery and addressing long-term legacies,” a statement said.

Why does the government get to choose between the two? Isn’t that the whole idea of a free market economy?


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