Head to Head
A political discussion about the Aug. 5 Standard & Poor’s lowering of the U.S. credit rating from AAA status to AA-plus status
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Submitted by Jonathan Savitske
Since the inauguration of President Obama, he has proven to be foolish when dealing with fiscal policy. Rather than realizing that he had inherited a bad economy with massive amount of debt, he proceeds to triple spending and increase our debt exponentially.
From healthcare reform to increased unemployment benefits and entitlements, Obama has destroyed our credit rating by spending money that the U.S. government does not have. Harry Reid actually has the audacity to claim that the GOP is responsible for the downgrade because of its inability to raise taxes. This claim is ridiculous. By lowering taxes, it would leave more money in the pockets of working Americans to go out and spend money, thus putting more money into the economy. Instead, though, the government continues to spend money it doesn’t have. It’s only recourse at this point is to raise taxes to pay the debt, or print more money, which would lead to inflation.
The downgrade in the U.S. credit rating is rightly deserved. The government has once again shown how its incredible ineptitude in keeping a budget. We are taught when we are young not to live beyond our means, yet the government has been an horrible to us all. Thank you S&P, hopefully we will learn that there are consequences for our actions.
Submitted by Kahlim Barclay
S&P stated a triple A nation does not play political games with such a serious economic issue as raising the debt ceiling. Due to playing chicken with the early August deadline, House Republicans helped drive down the once great credit rating that the United States once maintained. Many will say it’s not the fault of house GOP members, but that would be incorrect. It is true that our nation is in massive debt and that the deficit is growing day by day; but let us remember that this was not the reason for the downgrade, or else Moody’s and other financial organizations would have followed suit and lowered the United States’ credit rating as well.
Let us remember that the credit rating loss on the S&P rating system was due to congressional politics and nothing more. The president offered the House Republicans a deal that cut not only Social Security and Medicare, but other areas of the budget that totaled in the trillions. This was not enough for those who desired a no-compromise situation. The House GOP wanted all of the president’s proposed cuts, but none of the areas of revenue that the federal government could have received by increasing taxes on those earning $250,000 or more. Due to signing the Grover Norquist “no tax” pledge, the House Republicans stood firm against any areas of revenue for the federal government and relied on cuts to help ease the deficit. Such cuts, without areas of revenue, would have been devastating to social programs that the elderly, the poor and the young rely on to survive within our nation. The president and House Democrats refused to allow the middle class and poor to bear the brunt of the burden, and thus refused to cave in to the republican’s refusal to compromise.
The lack of compromise by the GOP caused the credit rating to drop. Sadly, blame will be placed elsewhere. I do not deny that there needs to be cuts made to the budget, and I do not deny the fact that they need to be made soon, however, I will not ignore the fact that tax increases on those who can bear it are also needed if this nation is to reduce its deficit. House Republicans refused to accept this fact and decided to drive the nation towards default because they could not achieve everything they wanted to attach to the raising of the debt ceiling. Let us remember that as the United States of America almost defaulted on its debts that the GOP not only held its ideological position above the well being of the nation, but also held Norquist’s no tax pledge above the financial security of the middle class, the elderly and the poor. Let us remember who is truly at fault here.
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