CEOs expect the Republicans to gain control of the House in the elections, but fall short in gaining control of the Senate. Most CEOs believe the paralysis of a split in Congress will be good for the economy – and job creation.
In a recent survey of 212 CEOs conducted by Chief Executive, 81.6 percent of CEOs stated they believe the Republican’s will regain control of the House, while only 42.9 percent believe the Republicans will regain control of the Senate. A split in Congress may offer the best outcome, according to some CEOs, “If Republicans win the House this will have a positive impact on the economy. If Democrats lose a couple of seats in the Senate and do not have 60 votes, this too, will have a positive impact on the economy.”
CEOs see the split in Congress as having a positive impact on the economy. One CEO commented, “The best scenario would be a Republican House and deadlock in the Senate. At least if they are paralyzed they can’t do more damage.” This sentiment was echoed by other CEOs, “With no diplomats left in the Congress, we just need a close to even split to create gridlock. If they can’t do anything, at least they can’t hurt us, and we can move forward with some certainty that the rules won’t change.”
While most business leaders welcome a check on the current administration, a vocal minority views the Republicans with caution, suggesting they are on probation pending actions that, should they gain control of either House or Senate, would reduce spending and the tide of regulatory overreach.
For more about the outlook from CEOs about this week’s election from Chief Executive, please click here.