Business

Hundreds of Business Leaders Appeal to White House and Congress to Act Swiftly on Budget

U.S. business leaders on Tuesday sent both Congress and the White House a letter urging them to put America’s “fiscal house in order.”

Reuters reports: “After spending months quietly lobbying behind the scenes for an increase in the $14.3 trillion debt limit, a coalition of business groups from Wall Street to Main Street publicly called on Republican and Democratic leaders to set aside their differences and work together for the good of the United States.”

The letter reads:

“We believe it is vitally important for the US government to make good on its financial obligations . . . 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.”

“This is a Main Street not Wall Street issue. Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards and student debt. A default would risk both disarray in those markets and a host of unintended consequences. The debt ceiling trigger does offer a needed catalyst for serious negotiations on budget discipline but avoiding even a technical default is essential. This is a risk our country must not take.”

” . . . 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.”

Over 450 business leaders and groups including the powerful U.S. Chamber of Commerce and a number of Fortune 500 companies signed the letter.

Currently, the point of contention between both sides of the aisle is the Treasury’s suggestion that Congress raise the debt ceiling. The theory is that if they raise the ceiling, which caps how much the United States can borrow, by August 2, the U.S. will be able to avoid an unprecedented default.

Republicans are insisting on deep spending cuts before they entertain the notion of raising the borrowing authority.

Speaker John Boehner, commenting on the Democrats lack of resolve in addressing entitlement reform, said that, “Dealing with them the last couple months has been like dealing with Jell-o. Some days it’s firmer than others. Sometimes it’s like they’ve left it out over night.”

Boehner explained that talks broke down over the weekend because, he said, the president backed off entitlement reforms so much from Friday to Saturday, “It was Jell-o; it was damn near liquid.”

Read the full content of the letter here

Comments (39)

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  • lylejk
    Posted on July 20, 2011 at 12:12pm

    The Solution

    First of all, we have to understand that we are going broke. My solution: we got to recall all our military from all foreign lands (and I mean all) and cut it by a third to a half and the remaining troops main mission should be guarding the borders as they are Constitutionally demanded too. Now that would save a heck of a lot of money. Let the rest of the world take care of their own business; we can no longer be the police force of the world. Domestically, I would eliminate the Income tax and IRS and go to a National Sales Tax model. Less entities to collect from so that will further reduce the need for government workers saving more money. Also, before we even had income tax, we got most of our money from tariffs and other fees. Repeal NAFTA/GATT and bring the tariffs back. Short term, things will cost more. Long term, the jobs will return (they have too if companies want to sell their goods to us at a reasonable cost to them). NAFTA/GATT just gave them incentives to leave. That’s my take; want to hear yours. :)

    Report Post » lylejk  
  • Fantastic Four
    Posted on July 19, 2011 at 2:35am

    Making Mr. Ryan and Mr. Cantor the scapegoats in this situation is pointless. Career politicians from all 3 braches of government have taken away the freedoms of all of its citizens. The Government which supposely we employ makes decisions on how much “WE” pay them and how many benifits they will tell “US” that we will have to shell out for. Who in America pays their gardner triple what they make? After the initial insult they follow by telling us the will take our money to give “FREEBIES” (as in tax loopholes, pensions, grants an enormous list of waste) to a selected few that make sure they are re-elected and turn around and hand us the bill for what “THEY” promised someone else. To make sure “WE” follow in line and don’t stray from the herd, they allow us to follow rules and regulations to keep themselves in good standing to their masters and have more money availble to them (not the people who actually employ them). The kink in the whole system now is the Tea Party, that to the government of career politicians was unexpected which also has woken up other Americans and they too look around and not reconize their “OWN” country. Political correctness has shut people up from the injustices and the hard hitting “helping the poor, and the climate nonsense” has made us give up our wallets and make us submit to a third world lifestyle. Funny thing though all 3rd world nations are ruled by DICTATORS. The new freshmen in Congress are not savy to the system and it see

    Report Post » Fantastic Four  
    • Fantastic Four
      Posted on July 19, 2011 at 2:41am

      seems maybe they are fighting for “US” just a guess at this point. The washington establishment and I do mean both parties and the media propaganda complex, are quick to hang them out to dry “TO KEEP THE STATUS QUO.” They rewrite History, degrade our military, demean the FOUNDING FATHERS and try and eliminate “GOD” in all we do. Several people in history have done these same things with the same end result many have to die so the rest submit to the new rulers, hitler, moa, stalin and the list is quite impressive. Many like you talk a big game but remember this as soon as the Constitution is eliminated you cease to be PROTECTED by it. Then and only then you will know what it really means to fear the Government. We should pray and support the new freshmen in both houses that they not be corrupted enough to SAVE that piece of paper of FREEDOM. Attached is a list of government waste read it then ask yourself the same question again? Who is the adult in the room? Attached is the list of government waste http://www.akdart.com/abu7.html

      Report Post » Fantastic Four  
  • MUDFLAPS
    Posted on July 14, 2011 at 9:19pm

    Silly rabbit, dont you know this government doesnt care about business.

    Report Post »  
  • Bernard
    Posted on July 14, 2011 at 7:20pm

    Money makes the world go round the world go round the world go round
    Money make the world go round for that I am sure
    A mark or a yen or a buck or a pound
    makes the world go around for that I am sure….

    knock, knock, knock
    Who is knocking at the door?
    HUNGER see how fast love flies out the door
    money, money, money, money, money, money

    Report Post »  
  • sjpm2
    Posted on July 14, 2011 at 6:46pm

    One last thought
    It is very easy to pick the hanging fruit but it takes courage to ascend and go out on a limb to pick that, which is just ripened.

    Report Post »  
  • sjpm2
    Posted on July 14, 2011 at 6:14pm

    Follow the money, huge portions of it have gone to keeping unionized government employees in their jobs, along with renewable-energy subsidies, a host of “green” (and other) development projects of dubious value, and increases in regulatory planning and administration; how many new IRS agents? Some of the spending might be worth following through on (e.g., road improvements), but otherwise, it is this spending that ought to be eliminated first. The new House Republicans have been right about that from day one: roll spending back to the level of 2008; demand it. Also, fight for an immediate corporate rate reduction, this would spear growth. A modest increase in the interest rate would nudge dollar’s value and reduce the cost of oil as it is tied to the dollar. The bond market would also benefit as investors having no other upward trending currency move in on US Treasuries. This in effect will insure a slow modest increase in inflation rather than the hyper-inflation that is on the horizon, this stagflation is bad enough.

    Do not raise the debt ceiling without these concessions. Force the Treasury to make the choices and emphasize it is this administration that has continually picked winners and losers through bailout budies.

    Report Post »  
  • sjpm2
    Posted on July 14, 2011 at 6:13pm

    U.S. could lose its coveted AAA ratings if it defaults on its debt, while Treasury Secretary Tim Geithner has said failure to agree lifting the borrowing limit could be devastating to the economy because the U.S. won’t be able to pay its bills.
    An A rating is based on an obligor’s capacity to meet its financial commitments, a AAA is EXTREMELY STRONG.
    The fact is that a weak dollar prompted by the Fed pumping more notes and keeping interest rates artificially low that does’t promotes confidence among creditors. However, a signal of earnest effort to decrease the debt and promote growth would have a positive effect on markets and specifically the bond market. Yes, interest rates would increase gradually; but, it is not a lack of equity preventing growth, it is the fear of the uncertainty of how much of that equity must be liquidated to pay potentially higher taxes and healthcare.
    Entitlements are a systemic, long-term debt problem, but they are not what has caused the national debt to spiral from 2009 to 2011. Discretionary spending has skyrocketed under Pelosi and Reid (and especially during 2009 congressional term).

    Report Post »  
  • FaithfulFriend
    Posted on July 14, 2011 at 6:01pm

    ¡¡ʇɥƃıɹ sı uıʌǝl ʞɹɐɯ

    Report Post » FaithfulFriend  
  • dianna9490
    Posted on July 14, 2011 at 5:02pm

    OBAMA READ OUR AMERICAN LIPS – You guys get NO MORE OPEN CHECKBOOKS – PERIOD! By the way you gave everyone a 40% pay raise increase before you put a freeze on salaries – I demand that you take these increases back and decrease the salaries by atleast 10% more! We the American people DEMAND that you STOP spending taxpayers money on GOVERNMENT JOBS GOVERNMENT LIES – YOU JUST DON’T GET IT!

    Report Post »  
  • Gypsy123
    Posted on July 14, 2011 at 1:15pm

    Did GE start this crap? I wont buy anymore of their junk

    Report Post » Gypsy123  
  • Richard Compton
    Posted on July 14, 2011 at 12:59pm

    Obama thinks We The People are too stupid to understand all this ecconomic stuff, yet We The People are the ones who run businnesses, built this country and create prosperity. Obama has never owned a business, has never created anything yet he knows better than We The People how to fix the mess in Washington. So here is my solution Mr. Obama, we pay our debts, we shrink the government back to year 2000 levels, that will mean some people won’t have jobs anymore like the czars, we get rid of all the regulations that are strangling businesses all businesses. We get rid of the death tax, we lower our corporate taxes to the lowest levels in the world. You want to crearte a jobs market let the world America is open for business again. And most important of all Sit down And Shut Up!

    Report Post »  
    • Fantastic Four
      Posted on July 19, 2011 at 2:53am

      This would be true if you ADORE this Nation and Honor it with Respect for the good it has provided the entire world since it’s formation. Set aside the few black eyes we have in our history but who can start a nation 100% perfect unless your GOD.

      Report Post » Fantastic Four  
  • taxedenuf
    Posted on July 14, 2011 at 10:50am

    Cronycapitalist Rinos like Donald Trump and the CofC cliche demand the small business owners keep paying the 35% corporate tax rate or the 35% personal tax rate for LLCs, while they continue to bribe the congress to give them special tax provisions to lower their specific company. GE pays nothing, Google pays 3%, but Acme Widget Co. pays 35% of profit. We owe 96% of GDP, and the pres wants to increase that to 105% of GDP. Not only Greece couldn’t join the EU, neither could we! I heard the Governor of Vermont (D) today on telling the world that those greedy Tea Party people needed to pass the tax increases on the wealthy and end this budget impasse. My shout at the tv was that we should cut ALL Milk Subsidies. Vermont wouldn‘t exist if it weren’t for Dairy subsidies, meanwhile we can’t give the cheese the government has to produce to keep from drowning in milk away fast enough. Every flood, earthquake, tsunami, or hurricane, SEND IN THE CHEESE.
    IT IS TIME TO CUT WHOLE AGENCIES, WHOLE PROGRAMS, AND WHOLE FAILED POLICIES. The Medicare/medicaid program is going broke, There is no way short of everyone paying a huge portion of their paychecks in taxes to save it. The babyboomers wave is hitting the beach and it is a wall of debt which will sweep away everything. Ponzi schemes have a way of doing this. Ask Maddoff victims.

    Report Post »  
  • lylejk
    Posted on July 14, 2011 at 9:40am

    And you are surprised because….? These guys are fatcatting it on our nations dept. They are also pushing Bernake’s strings to print more money so their stock gets higher too and just before the crash, they will cash in and jump out of their plane using their golden parachutes. Just remember, it will be a hard landing since this whole planet is going to pot thanks to you corporate types (replace “types” with whatever word you like; I don’t want my reply to get the can). :)

    Report Post » lylejk  
  • ShamanWorld
    Posted on July 14, 2011 at 8:21am

    This is all being orchestrated by all of the bored high powered globalists on this Earth who are ready to sit back and watch the USA burn. All while helping to usher in Chinas’ rise to dominance. Blame Obama if you feel better, but remember he may be a willing one, but he IS a puppet nonetheless. And he was raised by his white half of family who had communist leanings so don’t try to blame Rev. Wright(who was right a lot, I must say)(From a black perspective).

    Report Post » ShamanWorld  
  • Atokaite
    Posted on July 14, 2011 at 7:40am

    Again, E mail your Congressional Rep.
    The Folks need to be heard.
    The Republic will not survive a Socialisitc Ideological driven spending spree.
    end
    Semper FI

    Report Post » Atokaite  
  • sbenard
    Posted on July 14, 2011 at 7:40am

    Since the default setting is going to be lower spending, I recommend, as a small business owner, that they take all the time in the world.

    That said, since ALL federal revenue is now consumed by entitlements (yes, 100% of federal revenues), we must all awaken ourselves and our fellow citizens to the fact that if/when we hit the debt brick wall, entitlements of all kinds will come to an abrupt end. This is going to affect a lot of people. But this is why, as Glenn has suggested, we must exit the system and become self-reliant ASAP. The debt debacle IS coming, and its coming soon!

    Report Post » sbenard  
    • Jaycen
      Posted on July 14, 2011 at 12:42pm

      Agreed. I’m looking forward to a default. STOP SPENDING.

      There’s no need to increase the limit if we stop doing that which drives us to the limit, right? Man, people are shockingly dim-witted when it comes to this issue.

      The longer the government shuts down, the better off the country will be. It simply means we won’t be able to rack up new debt for a while. That’s a GOOD thing.

      Report Post » Jaycen  
  • Kawohlus
    Posted on July 14, 2011 at 6:28am

    Who is John Gult

    Report Post »  
  • NHABE64
    Posted on July 14, 2011 at 5:16am

    How terrible to sit and watch this happen to the United States of America. Of all countires and its ALL because of Obama. Barack Hussein Obama who belongs in prison for life. Knowing he is the blame and still he stands their defiantly threatenning to take away the life blood of senior Americans in order to keep his out of control spenidng. He should be executed for treason against the United States of America. Since Obama has been President, I have never seen so many socialist cockroaches running around spewing garbage from their mouths or so many liberal paid for newspapers supporting him and his wretched comrades trying to CHANGE America into a socialist world country. So this is the CHANGE America was supposed to believe in ? As far as I am concerned Barack HUSSEIN Obama can go straight to hell!

    Report Post »  
  • Cold War Vet
    Posted on July 14, 2011 at 3:07am

    Math quiz for liberals:

    You have One dollar.
    You spend it on a $1 candy bar, and borrow a million dollars, and buy a million more $1 candy bars.
    How much money do you have left?

    Report Post » Cold War Vet  
    • Cold War Vet
      Posted on July 14, 2011 at 3:11am

      14 trillion dollars?

      You government people shouldn’t be allowed to use the word “trillion.” You are too immature and irresponsible.

      The only people who should be allowed to use words like that are physicists, astronomers and mathematicians. And private citizens, should they choose…

      Report Post » Cold War Vet  
  • OperationNorthwoods
    Posted on July 14, 2011 at 2:51am

    How come Mitch McConnel’s budget treason, I mean solution has not been covered on the blaze? It’s a pretty big story.

    Report Post » OperationNorthwoods  
  • Lee Fox
    Posted on July 14, 2011 at 1:55am

    A) There will be no default.
    B) The Chamber of Commerce cannot be trusted.

    Report Post »  
    • old white guy
      Posted on July 14, 2011 at 7:17am

      lee fox. i agree there will be no default, unless, the administration sets it up. there is more than enough revenue to pay the intrest on the debt. thw question is will they pay legitmate debt or will they pay those at the trough??? oink oink.

      Report Post »  
  • Chet Hempstead
    Posted on July 14, 2011 at 1:21am

    The headline that The Blaze chose for this story reflects the spin they want to put on it. It would have been more accurate to say “Hundreds of Business Leaders Appeal to White House and Congress to Act Swiftly on Debt Ceiling.” Like it or not, it isn’t realistic to think that the budget deficit can be solved in the next three weeks. The debt ceiling has a hard deadline, and if we don’t settle for a short-term solution, the business community is going to start being more afraid of the Republicans than they are of the Democrats.

    Report Post »  
    • DonaldH
      Posted on July 14, 2011 at 1:35am

      It just occurred to me, the Democrats goal for decades has been to make the rest of the worlds economy equal to ours –“Share our wealth” — so here’s their chance– They aren’t interested in negotiating ANYTHING on the budget in good faith–it’s a win-win for them,, Republicans cave and we keep spending more than we make or the Republicans stand strong and we default on something,, either way we get knocked down a peg or two and the Republicans will look like the meanies… Their plan is all coming together it appears to me…… Brilliant!!

      Report Post » DonaldH  
    • Chet Hempstead
      Posted on July 14, 2011 at 1:54am

      The Republicans’ only goal is to win next year’s election, so they would be perfectly happy to see the economy go down the toilet, at least to a point. They were hoping to extort the President into cutting public sector jobs faster than private sector jobs can grow, creating a stagnant employment rate that would appear to be all his fault. It’s a clever plan with only one flaw; if they actually refuse to raise the debtceiling in time, it could send the country so far down the toilet that it will hurt their wealthy owners along with the rest of us.

      Report Post »  
    • Cold War Vet
      Posted on July 14, 2011 at 3:05am

      That sounds about right. The socialists are trying hard to bring us all down, excepting themselves, of course. Anything that goes wrong can be blamed on conservatives.

      Report Post » Cold War Vet  
  • DonaldH
    Posted on July 14, 2011 at 1:21am

    If Wall street wants collectively muscle their way in to the decision making over “We The People” then maybe if enough of us pull our 401’s maybe they’ll get the message to STFU.. We’ve already bailed their fat-cat uknow-whats out more than once… I’VE HEARD ENOUGH FROM THEM

    Report Post » DonaldH  
  • DonaldH
    Posted on July 14, 2011 at 1:16am

    Raising the debt ceiling to “pay our debt” makes about as much since as raising the Blood Alcohol levels for drunk driving to effect a decrease in drunk driving fatalities….

    Report Post » DonaldH  
  • STAR SPANGLED SPAMMER
    Posted on July 14, 2011 at 1:05am

    ¡uo ploɥ˙˙˙˙uʍopǝpısdn uɹnʇ oʇ ʇnoqɐ sı plɹoʍ ǝɥʇ

    Report Post » STAR SPANGLED SPAMMER  
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