UPS Chairman and CEO Scott Davis has called on US political leaders on both sides of Congress toget together urgently and agree a bipartisan debt reduction plan.
Since the nation’s economy is burdened by its debt load and the uncertainty of fiscal policy, adebt reduction plan has to be drafted instantly for immediate consideration when the newly electedCongress returns in January, Davis said in a speech to the state’s business executives inWashington D.C.
“I believe it’s realistic to have it approved early next year,” he said. “If our leaders worktogether and can compromise, we can deal with these problems and get our nation on a sustainablefiscal path. At this moment, our country’s Board of Directors – the President and Congress – arefacing not one, but two self-inflicted crises: the impending fiscal cliff and the crushing tradeimbalance.
“Because Congress couldn’t agree on common sense fiscal reforms last year, we now face a doublewhammy of potential shocks to our economy,” he added, citing automatic spending cuts and taxincreases that will come into effect at the beginning of 2013. These uncertain economic conditionshave an unfavourable impact on companies’ spending decisions, Davis stated.
“When companies don’t spend and hire, the business engine driving our country sputters along.And the economy stagnates.”
Davis also voiced his demands on US leaders to demonstrate stronger leadership in globaltrade issues. Recent deals with South Korea, Colombia and Panama should not be consideredsufficient as the 19 trade agreements currently in effect are inadequate, he asserted. “Trade hasalways been the world’s most powerful engine of growth, job creation and prosperity.”
Contrasting UPS’s successful transformation over the past 105 years to the federal government’sapproach to dealing with today’s challenges, Davis said: “I want our elected officials inWashington, D.C., to start running this country the way we run our companies: with real leadership,courage, discipline and foresight. Our country needs pragmatic leaders who work together to solveproblems.”
