Business Leaders Urge Policymakers to Raise the Debt Ceiling and Enact Long-Term Fiscal Plan
Yesterday, nearly five hundred business leaders and organizations sent a letter to the President and members of Congress joining the chorus of other concerned groups and citizens (including CRFB! Read more here) urging policymakers to raise the debt limit and also "agree to a plan to substantially reduce our long-term budget deficits with a goal of at least stabilizing our nation's debt as a percentage of GDP". Some notable signatories include: Vikram Pandit CEO of Citigroup Inc., John Chamber CEO and Chairman of Cisco, and Robert McDonald CEO of Proctor & Gamble Co.
The United State's economic future is inextricably linked to the nation's budget. A predictable long-term deal will likely provide business leaders with a renewed sense of confidence and certainty regarding future tax and spending levels, which could help create additional investment and job growth. It is essential for policymakers to put aside partisan differences and act in the nation's best interest by avoiding default and agreeing to a comprehensive long-term deal that will set the United States on a sound fiscal footing.
As the letter says:
"First, it is critical that the US government not default in any way on its fiscal obligations. A great nation - like a great company - has to be relied upon to pay its debts when they become due...
Second, our political leaders must agree to a plan to substantially reduce our long-term budget deficits with a goal of at least stabilizing our nation's debt as a percentage of GDP - which will entail difficult choices. The resulting plan must be long-term, predictable and binding. As businesses make plans to invest and hire, we need confidence that, in the absence of a crisis, our government will not reverse course and return to large deficit spending."