The US government faces the threat of an imminent government shutdown which could cause serious economic damage if Congress does not approve a financing bill before 11:59 pm this Saturday, Eastern time.
With a government shutdown looking all but certain at midnight Saturday, CEOs and CEOs are preparing for the economic consequences.
91% of CEOs and board directors surveyed in new survey agree worried that a government shutdown will last more than a couple of daysthus harming the economy.
The survey, conducted by the Committee on Economic Development, the public policy center of The Conference Board (CED), also found that 44% of respondents are adjusting their business plans. 82% expect a shutdown will hurt US creditworthiness. And a majority, 56%, believe both parties are to blame.
The survey assessed more than 70 CEOs and board directors between September 25 and 28 regarding their expectations and concerns about a government shutdown.
“A government shutdown must be avoided to protect the nation’s credibility and avoid self-inflicted economic ramifications. at a time when the economy remains vulnerable to further disruptions,” said Dr. Lori Esposito Murray, president of the CED.
“A top priority must be for Congress to pass a near-term funding bill to ensure the government remains open, while continuing its work on next year’s funding. But the most important, Congress must get out of this routine of fiscal irresponsibility which has led to a gargantuan national debt and perpetual deficits. “CED strongly reiterates its call to establish a bipartisan congressional commission on fiscal responsibility, a solution that 87% of our respondents agree with,” Murray added.
· 91% of respondents are concerned that a government shutdown that lasts more than a couple of days will negatively affect the economy.
· 42% are very worried.
· 49% are somewhat worried.
· 8% are not worried at all.
Adjustment of business plans:
· 44% of respondents are adjusting their business plans to prepare for a closure.
· 1% are significantly adjusting their business plans.
· 43% are moderately adjusting their business plans.
· 55% are not adapting their business plans at all.
· 82% of respondents are concerned that the government shutdown will negatively affect the solvency of the United States.
· 41% are very worried.
· 41% are somewhat worried.
· 18% are not worried at all.
Who is guilty:
· 56% of respondents believe that both Democrats and Republicans are responsible for the government shutdown.
· 38% believe that only Republicans are responsible
· 6% believe that only Democrats are responsible
· 56% believe that both parties are responsible
Long term solution:
· 87% of respondents believe a bipartisan congressional commission on fiscal responsibility could help reduce the national debt.
· 39% believe that a commission would be very effective
· 48% believe that a commission would be moderately effective
· 13% believe that a commission would not be effective at all
· United States public administration runs out of funds at midnight on October 1
· United States Senate presented a bipartisan plan to avoid a government shutdown until November
· The Conference Board’s Leading Economic Index falls again in August and warns of a period of challenging economic growth