As if the looming “fiscal cliff” isn’t frightening enough, new results suggest it’s already doing very serious damage to the economy. And it’s only September.
According to a new survey released by the Business Roundtable, corporate America’s view of the economy is as bleak now as it was in 2009, when the economy was struggling to emerge from recession.
Also, the survey shows executives are now more likely to cut jobs over the next six months, and that companies are less likely to raise their capital spending.
Largely the CEOs who participated in the study cited the “fiscal cliff,” or the confluence of tax hikes and spending cuts that could go into effect as soon as January 2013, as a major influence behind their decisions.
Dow Chemical CEO Andrew Liveris called the fiscal cliff a ‘multiplier’ that makes any negative catalyst that much worse.
As much as $500 billion in federal spending reductions and expiring tax cuts are due to take effect if Congress and the White House are unable to find a compromise on these issues by Dec. 31, 2012.
As a result, the CEOs also lowered their forecasts for U.S. economic growth.
“The government is failing us as a whole,