Large corporations will only oppose government spending if it isn't in their favor
Wall Street and big business desperately want the debt ceiling raised. They understand that a U.S. default would be catastrophic to the economy. But saying that they want the debt ceiling raised is different from saying that they want the U.S. to close its deficits and pay down the national debt. They don't. This might seem surprising to some, but it shouldn't be.
Big business' love of deficits was the subject of David Leonhardt's column today in the New York Times. He says big business lobbyists are part of the reason why cutting the deficit has been so difficult: they don't want the spending cuts that Republicans demand -- and they certainly don't want higher taxes.
Isn't this contradictory? After all, you can't have lots of spending and also very low taxes. That's precisely the attitude that Americans are often chastised over when new polls come out saying that they don't want their taxes raised but they also don't want any expensive entitlement programs to disappear. But in the case of big business, the logic isn't so simple.
Let's say you're a giant multinational conglomerate called Universal Mechanics (UM) that specializes in energy, technology, infrastructure, industrial equipment, and finance. You spend millions of dollars every year lobbying Washington for two reasons: you want tax subsidies and credits to make doing business at home and abroad cheaper, and you want to win contracts for government projects and federal research grants.