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US CEOs urge for $300 bn fiscal stimulus

US CEOs urge for $300 bn fiscal stimulus
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First Published: Wed, Nov 19 2008. 11 27 AM IST
Updated: Wed, Nov 19 2008. 11 27 AM IST
Washington: Chief executives of leading US companies called for a fiscal stimulus package worth at least $300 billion and urged president-elect Barack Obama to swiftly name his economic team.
Dozens of chief executives met at the Wall Street Journal CEO Council event in Washington DC to identify what they think should be priorities for the Obama administration and the new Congress.
Wachovia Corp’s Robert Steel and pension fund TIAA-CREF CEO Roger Ferguson were among those calling for a fiscal stimulus package to encourage consumer spending in the short term.
Overall, chief executives agreed that the US economy could not recover independent of the rest of the world, and they urged the international community to coordinate stimulus plans.
A global financial crisis has led several countries into recession, tightened credit markets, raised unemployment and wrecked havoc on consumer spending.
Leaders of industry emphasized investment in infrastructure and programs with long-term benefits, and said the United States should favor permanent tax cuts over tax rebates.
However, a broad economic stimulus bill, which Obama wants the US Congress to pass promptly, is opposed by many Republican lawmakers and is unlikely to be approved by the current Congress during its short legislative session this week.
Obama’s chief of staff, Rep. Rahm Emanuel of Illinois, later told the conference that key components of a stimulus package would include tax cuts and what he called investments in “green” infrastructure. “The economy needs it, the American people need it,” Emanuel said.
CEOs lamented lack of young talent in science, technology and math, and called for a partnership with the private sector to promote a more competitive workforce. Improving education was the group of executives’ second-highest priority after a global economic stimulus plan.
A subgroup of chief executives said the Treasury Department should use funds remaining from the $700 billion financial services rescue plan, and possibly additional funds, to buy illiquid assets from financial institutions, the original intent of the plan.
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First Published: Wed, Nov 19 2008. 11 27 AM IST
More Topics: US | Market Crisis | Economy | Corporates | Fiscal |