IMF Backs Obama's Economic Stimulus Plan

Wall Street Journal:

WASHINGTON -- The International Monetary Fund's top economist generally endorsed the incoming Obama administration's approach to economic stimulus, and urged countries to consider offering a kind of "recession insurance" to companies and individuals.

President-elect Barack Obama's economic team is weighing a stimulus plan that would cost somewhere between $675 billion and $775 billion over two years, and would be used largely for construction and other government spending. The package is likely to include a temporary tax cut of as much as $1,000 for middle-income families.

Olivier Blanchard, the IMF's chief economist, said "the size corresponds roughly to what we think is needed." He backed the Obama approach of targeted tax cuts, saying the money should go to consumers who are "truly credit constrained."

Read the whole story: Wall Street Journal

Comments

[Rule Of Law]

"Among the IMF's proposals is a kind of "recession insurance." Under that plan, individual governments would offer insurance to firms and individuals that would pay off if GDP sank below a certain level."

We can't--or won't--give working class people in this country even access to a universal health program, but they are willing to talk about insurance for Corporations???????

[Rule Of Law]

And if the fear of failure is removed, then where is the incentive to succeed? This is not Free Market anything. And who will we get to run this insurance program for us--AIG? LOL while dying inside.

[dolphy]

If something is supported by the IMF, it will surely fail. This is scary.

[schatsie]

Holy cannoli, sounds like the CRY BABY Capitalists do not believe in the FREE MARKET UNLESS there is a FREE LUNCH FOR THEM...

These people want to dump the risk on us taxpayers and still keep the RISK PREMIUM ...Where is the sense in this unless you are one of the HAVE MORES...DO you see them cutting any and I say ANY interest rates for ANYONE other than their cronies....

[jeffrey678]

Who is going to prison?

[bthechangeyouseek]

Support from all around, shows "unity." The plan seems to be a win, win, win...just what we need.
Now about those tax cuts...
'Former Bush White House economist Glenn Hubbard argues that despite the IMF findings, a broad corporate tax cut would spur investment and boost stock prices."

Corporations have had several years to invest the savings from tax cuts, and all they invested in was themselves. We cannot afford any further tax cuts for the wealthiest in our nation. Instead of losing it all in the markets and Ponzi schemes, they should be investing back into our country.

[satyriasis]

The IMF has raped the people of the third world for decades. The idea that they would support Obama is very troubling.

[Rule Of Law]

yes...

[derekc06]

there goes the national debt... thank you world for your kind hearts!

[heal57]

Big deal. The financial institutions get billions; we get a $500 tax break after they've stolen our money from our 401[k]'s, our homes, our jobs, etc.

[vjoseph]

Another slap to the Rethugs

[lynnn]

So what does Crocker, and the other know nothings have to say about this? Actually, you know what I don't care what they have to say at all.

[Chavez08]

The Banker Oligarchs approve? This doesn't bode well for U.S. citizens.

[ErnestineBass]

They HAVE to approve since they'll be loaning us the money to carry out Obama's plan.

And the price for this? The IMF will demand that America "privatize" any remaining public water and utility systems, and grant multinational corporations the "right" to despoil our national parks in search of oil, natural gas, coal and uranium.

Their plan is to make America a "third world" nation.

[Rule Of Law]

Everyone here should read the history of Chile under IMF control. And the role that Pepsi Cola played in the removal of their president for one who would sell off all the public systems so they could make their soda cheaper. The water was run by a company in England. They fired a number of people, raised the price of water to the people, while quality was degraded and delivery constantly interrupted. Finally the people revolted and forced their government to break the contract and return the water to the public. The IMF is a blood sucking leech. And, Ernestine, if we are truly at that point, and Obama is in bed with them, then we are the ones who will be getting f*****!

[Thinklongterm]

This can't be good. From the same folks that brought structural adjustment to the world.

[gjohntheterrible]

Unlike Bush's stimulus, Obama's stimulus is not based on handing cash to people.

[TJCole]

If The IMF is for it, you can be sure it's bad for the average decent American..!

[PATina]

I was thinking the same thing !!!

Don't get me wrong... I like the stimulus plan (or I should say the idea of a stimulus plan since I don't know the details)... but this scares me. The IMF has done nothing but pave the way for American corporate interests to pillage developing countries. Now I'm wondering... who will this trillion dollar stimulus help more.... the average citizen or corporate America????