Business Leaders Losing Hope Fast – Fiscal CLiff
With the fiscal cliff fast approaching, uncertainty is gripping business at large. Business leaders want Congress and President Obama to enter into a deal before the onset of 2013.
The Business Roundtable released a letter urging the congressional Republicans to make revenue concessions and Democrats to be flexible on Medicare and Social Security. The letter was signed by 158 chief executives of companies that together employ 18 million workers and have a whopping sale of $7 trillion.
A survey carried out by the National Federation of Independent Business (NFIB) showed declines in nine out of 10 indicators of confidence among its members. This shows that business owners are losing confidence as Congress is all set to raise taxes on couples making more than $250,000 a year. About 49% of NFIB members expect things to go from bad to worse.
In its last weekly survey of business confidence, Moody’s Analytics’ has found that confidence amongst business owners remains at a low level. About a third of respondents do not see any good coming in the coming months. The survey also found that government officials were the most pessimistic about the economy.
Meanwhile, the back and forth between President Barack Obama and Boehner on ways to deal with the fiscal cliff, continues unabated. This dithering shows they still have a long way to go in the short time remaining in 2012. Though both leaders plan to cut deficits by more than $4 trillion in the next 10 years they differ on how to get there. Like business owners, economists too feel that failure to would inevitably push the economy back into a recession.
On Tuesday, Boehner rejected a proposal that would shrink the deficit reduction revenue from $1.6 trillion over 10 years to $1.4 trillion. Boehner has insisted on collecting $800 billion in revenue through tax reforms.
Given that leaders are busy playing to the media rather than devising a solid action plan, business owners and analysts are fast losing hope over a possible turn around.