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U.S. Chamber of Commerce chief economist Martin Regalia on whether addressing the fiscal cliff at the end of the year is enough to avoid recession.
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Our target CEO saying the fiscal cliff has him worried and a letter to -- President Obama and Republican challenger Mitt Romney.
The chief executive stressing the need to acquire.
Of Bart.
The certain disaster that would befall America if the fiscal clip is not properly addressed.
Martin regalia is chief economist at the US chamber of commerce even at this point you hear about companies and mrs.
Anecdotal of course pulling back not spending not hiring even if it's -- draped with -- dressed.
By the end of the year is it too late to avoid recession.
Well I think the economy is very very weak we haven't seen any real momentum develop.
Really since the recovery started in the middle of 2009 we've had -- trade -- here of 2.4 percent one point 9% 2.2 percent.
These are anemic growth rates these are growth rates that would question whether we have the momentum to withstand any kind of external shock.
When you put the fiscal cliff on top of that you put the problems in Europe.
Into the mix here we have an economy that is flirting with recession.
You talk about obviously companies always talk -- and investor.
Uncertainty.
And they didn't that companies won't make decisions.
Because the future is uncertain even if something is done about that tax increases -- the end the year and postpones -- -- That's still on certain -- but could act tax code in recent years even with the bush tax cuts war.
Designed to sunset.
So -- is something much bigger need to get done in order to stabilize this economy.
Oh absolutely we know that in the longer run we have of severe debt and deficit problem.
We have to address those problems we have to -- and reform fundamentally reform our entitlement programs we have to curb our entitlement spending.
And we have to revamp and up fundamentally reform our tax code we know that those kind of issues take some time.
And those kind of issues really can't be done in the depths of the recession.
So we have to do is make sure that we continue growing that week.
Get the economy moving forward and then we have to make sure that we sit down and really tackle these long term problems of debt deficits.
Entitlements and tax reform.
Yet more and more companies -- coming out willing to come out and to target CO going as far as to write a letter.
Too but president Mitt Romney they're so why aren't as your experience do they think that it's that nothing -- is going to come out of.
Stream campaign nobody wants to give the other side an advantage so nobody wants to.
-- their cards as to how they would address these fundamental problems as a result we just kind of tool along heading towards the edge of the abyss and you know.
They're trying to do it in in a lame duck session they come back I think they have like 22 legislative days.
In the course of that period they've got to discuss some very very fundamental problems.
And they've got to make sure that before the end of the year we don't go over the what does happen then Martan where where would you put your money.
Well right now all I mean it looks like you know brinksmanship is is holding course.
The Democrats have said you know the Republicans don't come in with -- balanced program.
They'll push the bus off the cliff.
Others have said maybe a big that they go for go off the cliff because it doesn't turns up the heat I really don't think going under recession at this stage.
Is the kind of heat that we really need here in this economy or in this town.
Martin -- top -- mart or Dahlia of the US chamber of -- the chief economist there.
