link here to article
S&P downgraded the outlook for the US fiscal position to negative. It left its credit rating at AAA. Hopefully, this will encourage our politicians to work seriously on the long term debt problems that we face. In my view, the S&P action reflects the gridlock that they perceive in Washington. Both parties seem more concerned about the 2012 election cycle than the state of the economy. The GOP plan reflects the short term focus of the Tea Party no-nothings on immediate cuts in spending and its radical changes to Medicare and Medicaid do nothing to curtail price inflation. The plan shifts the cost of healthcare price inflation to seniors and most people know that this will not hold when the impact is felt by seniors. The GOP uses the spending cuts to fund tax cuts rather than the deficit as well. The Obama plan keeps tax cuts for the middle class and only wants to end the Bush tax cuts for the rich.
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