U.S. Companies Slashing Investment

U.S. Companies Slashing Investment

RT.com reports that U.S. companies are slashing investment rates to their lowest levels since the 2008 financial crisis, and it is not hard to see why: fears of the upcoming fiscal cliff and uncertainty over potential tax hikes have them spooked.

Companies such as Ford, Boeing, and Intel have all announced plans to cut capital expenditures.  They are all concerned about the potential fallout of the “fiscal cliff” should there not be a compromise.  They are worried that the United States will be plunged into another recession.  And they are worried about the huge deficit and the national debt.  To provide certainty to these companies, we need to solve these fiscal problems.  The future of America will be bleak if we do not.

What happens if they are not solved?  David Seaston, chief executive of Fluor Corp, says: “People will sit on their war chests of cash and return it to shareholders.  You’ll have a retarded growth trajectory.”

The dangers of what will happen if we do not get our fiscal house in order are real.  We need to get our debt under control to save America.

For more, read the article at RT.com.

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