Wednesday, May 22, 2013
IMF Calls on Cameron Tories to Change Course
Yet Cameron has now run afoul of that bastion of radical socialism, the International Monetary Fund. The IMF is crying "enough already" and pleading with Cameron to reverse course if only to boost the British economy.
It said the £10bn-worth of spending cuts and taxes planned for the coming year would be a "drag on growth" and urged the government to do more to stimulate the economy.
The fund's deputy managing director David Lipton said Britain should bring forward investment on infrastructure and defer some near-term spending cuts to kickstart the economy.
"In a range of policy areas, the government should be more supportive of growth. What is important now is not to make a mistake today and presume that all will be well with the economy some years from now. I think it's important to get started on infrastructure projects that will support the economy." He said that would allow the government to push back some of the cuts and bring forward more supportive measures.
The UK could suffer higher unemployment and lose economic capacity permanently if it ignores the fund's advice, he warned.