Monday, June 16, 2014

Regrettably

The International Monetary Fund slashed its forecast for US economic growth on Monday, citing a harsh winter, problems in the housing market and weak international demand for the country's products.

  Guardian
What products? Guns and warplanes?
In its annual review of the US economy, the IMF cut its growth forecast by 0.8 percentage points to 2%. At a press conference IMF managing director Christine Lagarde blamed the bad winter for much of the cut and said the setback should be temporary. But she warned: “Growth in and of itself will not be enough.”
So let me guess…austerity measures needed?
In its annual review of the US economy, the IMF cut its growth forecast by 0.8 percentage points to 2%. At a press conference IMF managing director Christine Lagarde blamed the bad winter for much of the cut and said the setback should be temporary. But she warned: “Growth in and of itself will not be enough.”
Say again?
[T]he IMF has called for an increase in the minimum wages in the US.

[...]

“We believe that a rise in the minimum wage would be helpful,” [Lagarde] said, especially if complemented with tax policies to help low-wage earners. “We are talking about significant numbers when you have 50 million living below poverty, many of whom are working. That’s why we are recommending it,” she said.
She’ll be out on her ear in no time.
While the impact of this winter’s frigid temperatures was now dissipating, Lagarde warned that extreme weather events were becoming more frequent and had an outsized impact on the economy. “I think that’s a valid reason to worry about climate change and how to deal with it,” she said.
Oh yeah. On her ear.
The IMF believes the US also needs to do more to mitigate the impact of its ageing population and to stimulate productivity. The best option would be for government to boost spending, notably on infrastructure, the IMF said. "But, regrettably, political agreement on such an approach remains elusive," the fund said.

...but hey, do what you want...you will anyway.

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