IMF head urges U.S. to "Act Now"! One of the many, varied underlying tenets of the so-called Tea Party is both Libertarian and Republican: Reduce taxes... of all kinds, personal and business. The Party notions seem rather like a cloud of a thousand droplets but, well, if that's the one thing Libertarians, Republican, and T-Party members agree on, then it's already "mission accomplished."
Unemployment has driven the economy into a hidey hole; taxes from income are certainly off and business taxes never were that onerous in many of the eyes of much of the Republic. Meanwhile, their political mantra is mindlessly "more, More, MORE!" A consumer economy without jobs is a frame... without a picture.
The new head of the IMF, Managing Director Christine Lagarde, said today at Jackson Hole, WY: "Developments this summer have indicated we are in a dangerous new phase."
"The stakes are clear; we risk seeing the fragile recovery derailed. So we must act now."
Regarding the U.S., she also admonished that long-term fiscal focus must not ignore the imperative of a near-term growth strategy. So much for balancing budgets or any massive fiscal restraint... which all is financed somewhereÂ—or somewhenÂ—by taxing someone. "After all, who will believe that commitments to cut spending can survive a lengthy stagnation with prolonged high unemployment and social dissatisfaction?"
Plainly put: No jobs recovery, no economic recovery. Recovery wasn't accomplished by throwing money at bankers and "too big to fail" corporations... or the problem wouldn't still be in play. It doesn't get simpler.
Politicos must stop the slide of home owner's equity, somehow... though having a job to pay one's mortgage trumps even that noble aim. "Exactly how a mortgage relief plan might work is still under discussion." This also implies rising inflation... and interest rates, which are a couple of Tea Party poopers, too.
Meanwhile, the economic realities will become political pigskin, as the season rapidly approaches.