The US government is facing the threat of an impending government shutdown which could cause severe 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 getting ready for economic consequences.
91% of CEOs and board directors surveyed in a new survey agree worried that a government shutdown would last more than two days thereby 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 adjusted their business plans. 82% expect a shutdown to harm US creditworthiness. And the majority, 56%, believe that both parties are to blame.
The survey surveyed more than 70 CEOs and board directors between September 25 and 28 about 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 consequences. at a time when the economy remains vulnerable to further disruption,” said Dr. Lori Esposito Murray, CED president.
“It should be a top priority for Congress to pass a near-term funding bill to ensure the government stays open, while continuing to work on funding next year. But most importantly, Congress needs to snap out of this routine of fiscal irresponsibility which led to a huge national debt and endless deficits. “CED strongly reiterates its call to establish a bipartisan congressional commission on fiscal responsibility, a solution that 87% of our respondents agree with,” added Murray.
· 91% of respondents are concerned that a government shutdown lasting more than two days will negatively affect the economy.
· 42% are very worried.
· 49% are somewhat worried.
· 8% are not worried.
Adjusting business plans:
· 44% of respondents adjusted their business plans to prepare for the shutdown.
· 1% significantly adjusted their business plans.
· 43% moderately adjusted their business plans.
· 55% are not aligned with their business plans.
· 82% of respondents are concerned that a government shutdown will negatively affect the solvency of the United States.
· 41% are very worried.
· 41% are somewhat worried.
· 18% are not worried.
Who is to blame:
· 56% of respondents believe that both Democrats and Republicans are responsible for the government shutdown.
· 38% believe only Republicans are responsible
· 6% believe only Democrats are responsible
· 56% believe that both parties are responsible
Long term solution:
· 87% of respondents believe that the bipartisan congressional commission on fiscal responsibility will help reduce the national debt.
· 39% believe that a commission can be very effective
· 48% believed that a commission would be moderately effective
· 13% believe that a commission is not effective at all