Skip to comments.Fearing an Impasse in Congress, Industry Cuts Spending
Posted on 08/06/2012 11:01:49 AM PDT by SeekAndFind
A rising number of manufacturers are canceling new investments and putting off new hires because they fear paralysis in Washington will force hundreds of billions in tax increases and budget cuts in January, undermining economic growth in the coming months.
Executives at companies making everything from electrical components and power systems to automotive parts say the fiscal stalemate is prompting them to pull back now, rather than wait for a possible resolution to the deadlock on Capitol Hill.
Democrats and Republicans are far apart on how to extend the Bush-era tax breaks beyond January the same month automatic spending reductions are set to take effect unless there is a deal to trim the deficit. The combination of tax increases and spending cuts is creating an economic threat called the fiscal cliff by Ben S. Bernanke, chairman of the Federal Reserve.
Until recently, the loudest warnings about the economy have come from policy makers and economists, along with military industry executives who rely heavily on the Pentagons largess and who would be hurt by the government reductions.
But more diversified companies like Hubbell Inc. in Shelton, Conn., have begun to hunker down as well.
Hubbell, a maker of electrical products, has canceled several million dollars worth of equipment orders and delayed long-planned factory upgrades in the last few months, said Timothy H. Powers, the companys chief executive. It has also held off hiring workers for about 100 positions that would otherwise have been filled, he said.
The fiscal cliff is the primary driver of uncertainty, and a person in my position is going to make a decision to postpone hiring and investments, Mr. Powers said. We can see it in our order patterns, and customers are delaying.
(Excerpt) Read more at nytimes.com ...
Many will just close the doors and stop the financial hemorrhaging. Stash the cash and do something else. Downsize to a level that will permit an extended hunker down.
I think you will be correct in what will happen. On the other hand I expect draconian laws to be passed that will allow the Government to confiscate “Unused and Excessive funds”. Those people are desperate for all the money they can get into their hands.
He will show you!
He will show you!
So I have to vote for the guy before I can know if the guy will actually do what he says and not what he did?
I’m going to vote for the guy because he’s not Obama, and even though he worries the hell out of me, I just don’t think he is as bad as Obama..
So don’t vote or throw your vote away! Frankly I don’t give A Darn!
dude.. relax. have a beer..
I said I’d vote for Mittens.. Telling me not to vote or to “throw my vote away” is kinda pointless at this time isn’t it?
Well don’t complain so much about mittens he is one heck of allot better than what we have now. A Communist!