U.S. Chamber Says GDP Numbers Show Need for Action

WASHINGTON, D.C. - The United States Chamber of Commerce said today's report, that the economy contracted by -0.4% in the third quarter, highlights the need for swift congressional action on an economic stimulus package.

"A package that stimulates consumption and encourages increased business investment and productivity will go a long way toward ensuring a swift economic recovery," said Bruce Josten, Chamber executive vice president.

"The unprecedented attack on the United States tipped our economy into a recession," Josten said. "But the severity and duration of an economic downturn can be mitigated by having the right policies in place, moving swiftly to advance additional monetary and fiscal measures, and planning ahead to stimulate growth."

The White House has outlined a series of measures - supported by the Chamber - including accelerating individual tax cuts enacted earlier this year, repealing the corporate alternative minimum tax, accelerating depreciation and increasing expensing.

The administration's tax cut and spending package, together with Federal Reserve action to cut interest rates and pump in liquidity, will slow the decline, according to Josten. The Chamber is urging lawmakers to pass an additional economic stimulus package to provide economic insurance and boost consumer confidence, including a comprehensive energy plan.

"The science of economics is not undone by terrorist attacks," said Josten. "The right monetary and fiscal policies, some of which already in place, combined with further pro-growth initiatives will ensure the economy rebounds quickly from this recession."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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