The resolution of the fiscal cliff, which CEOs lobbied heavily for, was met with relief rather than real excitement. That's because it's only a temporary fix, instead of the long-term debt reduction plan executives were hoping for.
It looks like we're going to have another series of high stakes negotiations ahead of the debt ceiling in February and automatic spending cuts in March. In an interview with the Wall Street Journal, GM CEO Dan Akerson was highly critical of the way the government's acted during a succession of crises:
"My concern is that we will be right back at it in two or three months, depending on the next crisis. We are a great country. We aren't a Third World country. You can't run the world's largest economy from month to month, from quarter to quarter. My fear is that we are going to have more uncertainty in the next 60 days. And I don't think that is good."
He points to his company's home town as an example of the real impact of high unemployment. "Fundamentally, all you have to do is come to Detroit and see what the lack of a job does," Akerson said. "All of a sudden the local store is gone. Then there is a house that is empty. It is a blight, it spreads."
Businesses can help with that, but the way government is acting has been holding them back. "To have jobs companies have to have some degree of certainty so they can continue to invest," Akerson said.
The level of debt we have just isn't sustainable, he argues. The solution is for Democrats and Republicans to think about the common good and find some common ground.
That's easier said than done. The fiscal cliff was intentionally created by Congress in order to force action. They couldn't come to an agreement with a year of advance notice, which makes it difficult to be optimistic about negotiations compressed into just a few months.
Akerson cites some lofty goals in the interview, including making Cadillac and Chevrolet global brands.
If they knew more about the future, companies would be better able to pursue those sorts of lofty goals and create jobs. That's something both parties should be able to agree on.
Find the full interview at the Wall Street Journal
