FINANCIAL TIMES: [Christine Lagarde, managing director of the International Monetary Fund] waded into domestic political debates in the US, basically endorsing a range of Obama administration’s policies, including a rise in the minimum wage, a higher earned income tax credit and more spending on infrastructure.
“We recommend an expansion of the earned income tax credit. It’s a programme that works and has been around for the last 40 years,” Ms Lagarde said. The credit gives a tax refund mainly to working low-income families with children.
“To complement the expansion on the EITC, we also argue for an increase in the minimum wage,” Ms Lagarde said, arguing that the US level was among the lowest in rich countries, relative to median wages… (more)
What Ms. Lagarde means is that she wants wages inflated to increase tax coffers. Her version of crony capitalism is stalled and she needs a fix. We should do what Europe does. Oh, I just remembered. Their economy is stalled too.