Money Matters - Simplified

Withhold campaign donations, appeals Starbucks' CEO

Schultz believes that as Congress is more concerned about re-election than solving the nation's problems, withholding the donations for re-election campaigns will force politicians to get to work.

In a bid to lower the growing budget deficit in United States, Howard Schultz, CEO Starbuck, the largest coffeehouse chain company, appealed to fellow business leaders to abstain from any donation to U.S. political parties, according to reports.

Reportedly, Schultz wrote an email to other corporates, urging them to delay any political donations , and explaining that the elected leaders “have failed to lead.”

“I am asking that all of us forgo political contributions until the Congress and the president return to Washington and deliver a fiscally disciplined long-term debt and deficit plan to the American people,” read the email.

He further stated, "Our country is better than this," and blamed the political leaders of misusing people's “collective confidence in each other, in the future, and in our ability to solve problems together."

Schultz joined Starbucks three decades ago and later served as CEO till 2000. He again took charge in 2008 after the company's sales growth dipped due to rapid expansion.

"That is why we today pledge to withhold any further campaign contributions to the President and all members of Congress until a fair, bipartisan deal is reached that sets our nation on stronger long-term fiscal footing.” --Howard Schultz, Starbuck's CEO.

Withholding donation to solve fiscal problems
Schultz believes that as Congress is more concerned about re-election than solving the nation's problems, withholding the donations for re-election campaigns will force politicians to get to work.

Schultz stated, “We aim to push our elected leaders to face the nation's long-term fiscal challenges with civility, honesty, and a willingness to sacrifice their own re-election.

"That is why we today pledge to withhold any further campaign contributions to the President and all members of Congress until a fair, bipartisan deal is reached that sets our nation on stronger long-term fiscal footing."

Unemployment needs to be tackled
Schultz also appealed to major U.S. firms to boost market confidence and tackle the high unemployment.

While asserting that companies will create more jobs, and accelerate growth, he stated, “Confidence is contagious. The best thing we can do now is to spread it."

“We just believe that in this moment of great uncertainty, the government needs discipline, the people need jobs -- and leaders need to lead," added Schultz.

The email, reportedly, was received by NYSE Euronext CEO Duncan Niederauer and Bob Greifeld, CEO of Nasdaq OMX Group Inc., who further e-mailed to companies listed on their respective exchanges.

The email, reportedly, was received by NYSE Euronext CEO Duncan Niederauer, and Nasdaq OMX Group, Inc. CEO Bob Greifeld, who further e-mailed it other companies.