Congress’s recent vote to send 18 billion American dollars to the International
Monetary Fund—the agency that tries to bail out troubled foreign economies—is
bad news for those economies and for Michigan.
The IMF has a track record of harming, not helping, the economies of struggling nations
such as Russia and Indonesia. It takes tax money from some countries and gives financial
aid to other countries whose governments often wreck their economies with job-destroying
taxes and regulations. IMF aid rewards bad policies and postpones the day when these
governments must institute responsible economic policies.
IMF aid also hurts Michigan two ways. First, Michigan workers’ taxes are taken to
support the IMF’s destructive spending sprees. Second, IMF aid hinders
Michigan’s foreign trade.
Michigan exports 13 percent of its production, more than the national average of 10
percent. When IMF aid helps ruin other countries’ economies, it cripples
foreigners’ ability to buy our products. Michigan workers who make those goods
Michigan should urge Congress to stop underwriting the IMF’s harmful economic
policies so other countries will be encouraged to institute the free-market reforms that
help boost job growth and prosperity here and abroad.
For the Mackinac Center, this is Catherine Martin.