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Fearing an Impasse in Congress, Industry Cuts Spending
New York Times ^ | 08/06/2012 | NELSON D. SCHWARTZ

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 Pentagon’s 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 company’s 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 ...


TOPICS: Front Page News; Government
KEYWORDS: 2012; bhoeconomy; bhofascism; congress; democrats; economicparalysis; economy; elections; fiscalcliff; liberalfascism; manufacturing; nobama2012; obama; spending; taxes; unemployment; uscrisis

1 posted on 08/06/2012 11:01:56 AM PDT by SeekAndFind
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To: SeekAndFind

They are holding back because they know if Obama wins he’s going to stick it to um like it’s never been stuck before.

They are holding back because if Romney wins his plans won’t work right away if at all.


2 posted on 08/06/2012 11:22:46 AM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: cableguymn

RE: They are holding back because they know if Obama wins he’s going to stick it to um like it’s never been stuck before.

Let’s say (God forbid), Obama wins... are they still going to hold back?

I mean, by that time, they’ll know what’s the White House agenda is for the next 4 years.

How long will businesses hold back before they say — OK, we gotta do something other than stand still....


3 posted on 08/06/2012 11:25:37 AM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind
How long will businesses hold back before they say — OK, we gotta do something other than stand still....

If Obama wins, they'll wait to see who gets the leadership positions in Congress. If it's weepy and blinky (Boehner and McConnell) again, they'll know nothing will change and things will get worse. If hopefully we get some good TEA Party leadership in that will actually DO things, then businesses will know that Obama will be contained.

4 posted on 08/06/2012 11:32:30 AM PDT by COBOL2Java (FUMR)
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To: cableguymn

if they are going to Go Galt they may as well do it now where it would have the added benefit of taking out Obama’s re-elect bid.

There are rumblings that some coordinated effort of this sort is in the works.


5 posted on 08/06/2012 11:37:46 AM PDT by Buckeye McFrog
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To: SeekAndFind

If 0bama wins, it will highlight the three different types of business in the United States:

1. They are here but not for long: these are the global players or businesses with the ability to pull up their stakes and leave. Those that have not done so already, will beat feet for the exit.

2. They are stuck here: these are the smaller businesses and have less mobility. They are going to look to sell out (probably to someone in category 1 above), close shop and live off whatever accumulated wealth they have, or will retrench and make their last stand in the last ditch.

3. They are here to stay, and you have to pay: These are the GM’s, GE’s and Solyndras. They are just fine with another 0bama term to pump borrowed federal money into their coffers. Of course, there will be kickbacks, but it’s a cost of doing business, right? It’s inefficient crony capitalism, or American corporate fascism with nominal “ownership” in what’s basically a command economy. Soon Americans will be waiting in line for toothpaste and toilet paper. Just like our old rivals in the now-departed USSR used to do.


6 posted on 08/06/2012 11:41:29 AM PDT by henkster (We're the slaves of the phony leaders...)
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To: COBOL2Java

RE: then businesses will know that Obama will be contained.

Or, Obama will CONTAIN Congress with his veto pen. It cuts both ways really.

Let’s say both houses are won by the GOP and they vote to authorize the Keystone Pipeline to be built... Obama then vetoes it.

What next?


7 posted on 08/06/2012 11:42:40 AM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind
What next? What next will be what should have been happening these last two years, but weren't because we had spineless RINOs in Congress.

Ever hear of impeachment and removal?

8 posted on 08/06/2012 11:45:27 AM PDT by COBOL2Java (FUMR)
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To: SeekAndFind
How long will businesses hold back before they say — OK, we gotta do something other than stand still....

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. My company has been shrinking and relocating as much as possible. We're in the bull's eye for a big hit with sequestration. We know from past harsh experience that when those engineers with the corporate memory to run the sophisticated DoD tasks are dumped on the street, they are never coming back. Those projects are toast. They will find an employer who isn't going to dump them and will have no reason to return.

9 posted on 08/06/2012 11:58:10 AM PDT by Myrddin
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To: cableguymn

They are holding back because if Romney wins his plans won’t work right away if at all.

So you don’t believe in Capitalism? If Romney cuts spends simplifies the tax code broadens the base so more people are paying income tax. Get rid of erroneous regulation then in about 10 months or so the economy will start to grow at about 7%!


10 posted on 08/06/2012 12:50:47 PM PDT by tallyhoe
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To: tallyhoe; cableguymn
So you don’t believe in Capitalism? If Romney cuts spends simplifies the tax code broadens the base so more people are paying income tax. Get rid of erroneous regulation then in about 10 months or so the economy will start to grow at about 7%!

I had similar sentiments in response to cableguymn's comment.

11 posted on 08/06/2012 12:56:28 PM PDT by frogjerk (OBAMA NOV 2012 = HORSEMEAT)
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To: frogjerk

Thanks!


12 posted on 08/06/2012 12:57:28 PM PDT by tallyhoe
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To: SeekAndFind

Despite 0Bamma not wanting egg on his face 4 days before the election, wait’ll all the defense contractors send out thousands of WARN notifications in the face of Sequestration. These CEOs can’t run their corporations based upon the “unknown...” Besides, 0Bamma has proven he is no friend of business or free enterprise. 0Bamma is the reason for the belt tightening and non-hiring!


13 posted on 08/06/2012 12:57:59 PM PDT by Ranger Warrior ("To stand in silence when they should be protesting makes cowards out of men." - Abraham Lincoln)
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To: 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.

What, pray tell, do these people think is going to happen that will paralyze the work being accomplished in Washington?

14 posted on 08/06/2012 1:01:53 PM PDT by EGPWS (Trust in God, question everyone else)
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To: SeekAndFind
hundreds of billions in tax increases and budget cuts in January, undermining economic growth in the coming months. ... military industry executives who rely heavily on the Pentagon’s largess

This NYT article is highly biased and full of unsourced opinion as usual. Destroying less taxpayer wealth on fat assed government hirelings and foodstampers supports economic growth. It does not undermine. The biased word largess means generous gifts. I doubt very much the Pentagon gives out gifts.

15 posted on 08/06/2012 1:13:45 PM PDT by Reeses (Sustainable energy? Let's first have sustainable government.)
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To: COBOL2Java
Ever hear of impeachment and removal?

You're an idiot. Removal requires two-thirds. Where are you going to find one Democrat, much less a dozen or more, to vote Obama out?

16 posted on 08/06/2012 1:31:41 PM PDT by newzjunkey
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To: newzjunkey

Nice language. I am talking about the next Congress.


17 posted on 08/06/2012 1:40:46 PM PDT by COBOL2Java (FUMR)
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To: cableguymn

” They are holding back because they know if Obama wins he’s going to stick it to um like it’s never been stuck before.”

Exactly.


18 posted on 08/06/2012 2:30:14 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: tallyhoe

So you don’t believe in Capitalism?


absolutely I do.

I am not sure Romney does. He is taking the right talk.. but his walk.. well...


19 posted on 08/06/2012 3:02:17 PM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: SeekAndFind

The recession began the moment Obama killed off Hillary and took a commanding poll lead, months befor the actual 2008 election.

Business has gone Galt for four years in case no one has noticed.


20 posted on 08/06/2012 4:51:25 PM PDT by FormerACLUmember
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To: Myrddin; SeekAndFind

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.


21 posted on 08/06/2012 5:08:15 PM PDT by The Working Man
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To: The Working Man
Those "unused and excessive funds" need to be moved out of the reach of the government ASAP. Offshore or in a private vault. Preferably as a hard asset that can't be stolen by arbitrary devaluation. Electronic "currency" will be raided.
22 posted on 08/06/2012 7:27:51 PM PDT by Myrddin
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To: cableguymn

He will show you!


23 posted on 08/06/2012 7:37:31 PM PDT by tallyhoe
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To: tallyhoe

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..


24 posted on 08/06/2012 9:08:55 PM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: cableguymn

So don’t vote or throw your vote away! Frankly I don’t give A Darn!


25 posted on 08/07/2012 12:08:09 PM PDT by tallyhoe
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To: tallyhoe

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?


26 posted on 08/07/2012 12:23:14 PM PDT by cableguymn (For the first time in my life. I fear my country's government.)
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To: cableguymn

Well don’t complain so much about mittens he is one heck of allot better than what we have now. A Communist!


27 posted on 08/07/2012 7:00:19 PM PDT by tallyhoe
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