The United States are struggling with internal and external stressors, as critics claim that failure to implement a new plan will result in another worldwide recession.
George Osborne, U.K. Chancellor of the Exchequer, said “People are concerned.” He added that there “was quite a lot of discussion” at the annual IMF meeting this week.
The current plan lingers around the idea of the U.S. incurring $100 billion in automatic spending cuts, as well as over $5 billion in expiring tax reductions in January. This week, the IMF claimed such a deal will undoubtedly tighten fiscal policy by 4% of GDP, the most since the 40s.
“It’s a very serious situation for all of North America and for the entire world,” said Jim Flaherty, Canadian Finance Minister. “It means we’ll all go into recession. So it’s important this gets dealt with.”