The head of the International Monetary Fund, Christine Lagarde, is criticizing America, for cutting government spending too much, and too quickly. The US economy “isn’t doing as well as it should,” she says, “because of self-inflicted wounds.” At the top of her blame list is sequestration. At the Brookings Institution, she said: “Sequestration alone, if not reversed, could cut a half percent of GDP growth.” She called it “an extremely blunt instrument, imposing deep cuts in many vital programs, while leaving untouched the drivers of long-term spending.” Before running the IMF, Ms. Lagarde was the finance minister of France. That doesn’t exactly give her a leg up as an expert on economic growth. But she’s right about one thing. Our biggest fiscal wound is largely self -inflicted. Despite what Ms. Lagarde says, the spending cuts imposed by sequester were miniscule. Like a pimple on a flea. Entitlements are the biggest drivers of government spending and we aren’t doing a thing to reform them. We haven’t cut too much, or too fast. Under President Obama, dependence on government programs is growing to epic proportions in everything from food stamps to disability. He has created a welfare state on steroids. Something Ms. Lagarde is too blind to see or admit. news.yahoo/imf-says-us-cutting-spending-too-much-too-202324753.html
Posted on: Sun, 09 Jun 2013 17:33:29 +0000
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