The Leader Board

Fed Chairman & Jobs Groups Say Going Over Fiscal Cliff Would 'Spawn A Dangerous Crisis,' Warn A 'Recession Would Occur'


Fed Chairman Warns On Consequences Of Fiscal Cliff

BEN BERNANKE, Federal Reserve Chairman: "…fiscal decisions should take into account the fragility of the recovery. That recovery could be endangered by the confluence of tax increases and spending reductions that will take effect early next year if no legislative action is taken. The Congressional Budget Office has estimated that, if the full range of tax increases and spending cuts were allowed to take effect--a scenario widely referred to as the fiscal cliff--a shallow recession would occur early next year…" (U.S. Senate, Committee On Banking, Housing, And Urban Affairs, Hearing, 7/17/12)

  • BERNANKE: "These estimates do not incorporate the additional negative effects likely to result from public uncertainty about how these matters will be resolved." (U.S. Senate, Committee On Banking, Housing, And Urban Affairs, Hearing, 7/17/12)

SMALL BIZ SURVEY: '90% Are Concerned About The Impending Fiscal Cliff'

U.S. CHAMBER OF COMMERCE: "Washington's policies are not meeting our country's fiscal challenges and are prolonging uncertainty among small businesses… Washington can restore confidence for small businesses in this country by addressing the fiscal cliff, removing regulatory barriers, increasing energy production, and starting over on bipartisan health care legislation." (U.S. Chamber Of Commerce, Small Business Survey, 7/16/12)

BUSINESS ROUNDTABLE: "Without effective action soon, this uncertainty will spawn a dangerous crisis, threatening our economy, businesses and workers." (Business Roundtable, Letter To Congress, 7/17/12)

NEW YORK TIMES: "…business leaders and policy makers are growing concerned that the tax increases and government spending cuts set to take effect at year's end have already begun to cause companies to hold back on hiring and investments." ("Fear Of Year-End Fiscal Stalemate May Be Having Effect Now," The New York Times, 7/11/12)

BLOOMBERG: "Companies are starting to delay hiring and spending out of concern that Congress won't reach a compromise in time to avoid automatic tax increases and budget cuts that would pull billions of dollars of purchasing power out of the economy." ("Fiscal-Cliff Concerns Hurting Economy As Companies Hold Back," Bloomberg, 6/19/12)

  • "Kimmie Candy Co. this month put on hold plans to add five or six workers to its 23-person payroll because of slowing sales growth and the political uncertainty in Washington, said Joseph Dutra, president of the Reno, Nevada-based company. 'For a small business like mine, cash flow is the biggest concern,' said Dutra, whose company makes Choco Rocks and Sunburst candies. 'If you don't know where the economy is going and where the government is going on taxes, you don't want to take too many risks.'"  ("Fiscal-Cliff Concerns Hurting Economy As Companies Hold Back," Bloomberg, 6/19/12)