Threat from deficits 'real and growing' stated Simon Cunningham-Hazes, CEO at Montgomery Glover Associates in Toronto Canada

Threat from deficits 'real and growing' stated Simon Cunningham-Hazes, CEO at Montgomery Glover Associates in Toronto Canada. End Quote

(1888PressRelease) October 06, 2010 - Simon Cunningham-Hazes, CEO at Montgomery Glover Associates in Toronto Canada stated Monday, "The economy could be hurt if Congress and the White House fail to come up with a plan to curb the nation's huge budget deficits in the coming years".

Simon Cunningham-Hazes reiterated his belief that the government shouldn't raise taxes or slash spending now because the economic recovery is still too fragile.

But failing to bring the deficits under control could endanger the economy later on, he said. Exploding budget deficits can lead to higher interest rates for people buying homes and cars, and for businesses buying equipment or expanding operations. That could crimp Americans' spending and slow economic growth.
Simon Cunningham-Hazes, CEO at Montgomery Glover Associates in Toronto Canada continued, "The threat to our economy is real and growing." "The sooner a plan is established, the longer affected individuals will have to prepare for the necessary changes."

The federal government is on track to produce its second-highest deficit ever -- $1.3 trillion -- for the budget year that ended Sept. 30. That would be slightly below last year's record $1.4 trillion in red ink.

President Barack Obama assembled a commission to tackle the soaring deficit. Its goal: come up with a plan to cut the deficit so that it is no bigger $550 billion by 2015, an amount equal to about 3 percent of the total U.S. economy.

The options for slicing the deficit -- cutting spending on popular entitlement programs like Social Security and Medicare and raising taxes -- will be difficult for the White House and Congress to sell to the American public.

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