Given the stunning turn around by the Republican Party leadership - well most of the leadership - yesterday on the nation's debt ceiling circus like debacle, many are assuming that belatedly the business community sent the GOP a message: stop playing games and get a resolution worked out NOW! The treat to the nation's economy and big business were the nation to go into default mode is huge and one can only imagine that large corporations poised to back political contenders suggested in blunt terms that the money spigot would be closed if the childish posturing and brinksmanship continued. Yes, the lunatics in the Tea Party will be pissed of, but they are not the ones with the big bucks. The Washington Post has a story that looks at the likely intervention that cause McConnell and Boehner to change their song and dance. Here are highlights:*
A sprawling coalition of Wall Street and Main Street business leaders sent an unmistakable message to lawmakers Tuesday: Enough squabbling. Get the debt ceiling raised. The message, sent in a letter to President Obama and every member of Congress, puts pressure on GOP lawmakers, who have staked out an uncompromising stance against raising taxes in the partisan wrangling over the country’s borrowing limit.
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Republicans rely heavily on corporations for political support and have regularly cited the opinions of these “job creators” in their opposition to new tax revenue. Many of the House GOP freshmen most opposed to a compromise were swept into office with the help of financial support from groups behind the letter.
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But the business community, which has largely kept quiet on the issue until now, does not uniformly share the Republican orthodoxy on taxes, according to some lobbyists who helped craft the statement.
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The letter, signed by hundreds of senior company executives and groups including the U.S. Chamber of Commerce and the Business Roundtable, said that “it is critical that the U.S. government not default in any way” and urges lawmakers “to put aside partisan differences and act in the nation’s best interest.”
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“The business community in large numbers is saying to our leaders in Washington, ‘Do your job,’ ” said Business Roundtable President John Engler, a former Republican governor of Michigan. “Failure to raise the debt ceiling would strike an immediate and serious blow to any economic recovery, and failure to make significant progress on long-term debt reduction will continue the uncertainty which is hampering our investment climate.”
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Republican lawmakers had a muted response to the business groups’ warnings. . . . . The developments underscore the increasingly awkward marriage between corporate leaders and the ambitious House GOP freshman class, which has joined the business lobby in opposing Obama’s health-care law and financial regulations but has shown no sign of budging on the debt ceiling.
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Lobbying groups for Wall Street — a sector that would take a direct and devastating hit if the debt ceiling is not raised — have largely avoided public statements on the issue. . . . . Wall Street lobbyists and other business groups preferred private meetings with GOP members to educate them on the consequences of a default.
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In their letter, the business groups warned that even a “technical default” is “a risk our country must not take.” . . . Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards and student debt. A default would risk both disarray in those markets and a host of unintended consequences.”
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The business community action definitely represents a bitch slap to sleaze bag weasels like Virginia's Congressman Eric Cantor. :)
A sprawling coalition of Wall Street and Main Street business leaders sent an unmistakable message to lawmakers Tuesday: Enough squabbling. Get the debt ceiling raised. The message, sent in a letter to President Obama and every member of Congress, puts pressure on GOP lawmakers, who have staked out an uncompromising stance against raising taxes in the partisan wrangling over the country’s borrowing limit.
*
Republicans rely heavily on corporations for political support and have regularly cited the opinions of these “job creators” in their opposition to new tax revenue. Many of the House GOP freshmen most opposed to a compromise were swept into office with the help of financial support from groups behind the letter.
*
But the business community, which has largely kept quiet on the issue until now, does not uniformly share the Republican orthodoxy on taxes, according to some lobbyists who helped craft the statement.
*
The letter, signed by hundreds of senior company executives and groups including the U.S. Chamber of Commerce and the Business Roundtable, said that “it is critical that the U.S. government not default in any way” and urges lawmakers “to put aside partisan differences and act in the nation’s best interest.”
*
“The business community in large numbers is saying to our leaders in Washington, ‘Do your job,’ ” said Business Roundtable President John Engler, a former Republican governor of Michigan. “Failure to raise the debt ceiling would strike an immediate and serious blow to any economic recovery, and failure to make significant progress on long-term debt reduction will continue the uncertainty which is hampering our investment climate.”
*
Republican lawmakers had a muted response to the business groups’ warnings. . . . . The developments underscore the increasingly awkward marriage between corporate leaders and the ambitious House GOP freshman class, which has joined the business lobby in opposing Obama’s health-care law and financial regulations but has shown no sign of budging on the debt ceiling.
*
Lobbying groups for Wall Street — a sector that would take a direct and devastating hit if the debt ceiling is not raised — have largely avoided public statements on the issue. . . . . Wall Street lobbyists and other business groups preferred private meetings with GOP members to educate them on the consequences of a default.
*
In their letter, the business groups warned that even a “technical default” is “a risk our country must not take.” . . . Treasury securities influence the cost of financing not just for companies but more importantly for mortgages, auto loans, credit cards and student debt. A default would risk both disarray in those markets and a host of unintended consequences.”
*
The business community action definitely represents a bitch slap to sleaze bag weasels like Virginia's Congressman Eric Cantor. :)
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