Another Reason to Reduce Financial Support for the IMF

[T]he [IMF] said there is significant slack in the [US] economy and authorities must do more to stimulate growth in the near term. At the same time, Washington must cut spending and raise revenue in the long term to avoid public debt overwhelming the country’s finances.

The best option is for the government to boost spending, notably on infrastructure, the IMF said.

This is a clear misunderstanding of the role of government in a free nation’s free market economy—by folks who should know better. Hence the need to reduce support: these folks are merely squandering what they have.

No, Washington must not “do more to stimulate growth” in the private sector, other than by reducing its enormous boot print and getting out of the way of our economy.

No, Washington must not “raise revenue in the long term” except by getting out of the way of our economy and letting its growth and increased and increasing health generate more revenues for government through increased and increasing economic activity. Here, I’m eliding the premise that Washington actually needs revenue increases.

No, Washington does not need to “boost spending.” As the IMF pretended to notice just above, Washington must cut spending. In fact, Washington must cut spending to below actual revenues and quit crowding out the private sector and private enterprise.

Full stop.

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