The 3 U.S. Policy Mistakes Most Responsible for S&P Downgrade

[The Straight Story]

As a result of Standard & Poor's stunning and controversial decision Friday night to downgrade the credit rating of the U.S. Government, the "Washington blame game" will start soon, and while there's enough blame to go around on both sides of the aisle, the three biggest factors that set the nation on the wrong fiscal course were public policy mistakes made by President George W. Bush from 2001 through 2008.

1. 2001 Bush Income Tax Cut

The biggest mistake, or the factor that most contributed to S&P's downgrade of the U.S. Government was the 2001 Bush Income Tax Cut.

2. No Health Care Cost Control, Through 2008

3. Wars Paid for With a Credit Card

http://www.ibtimes.com/articles/193639/20110806/why-downgrade-standard-and-poor-s-s-p-budget-deficit-bush-obama-clinton-national-debt.htm

[ms liberty]

1. K&R. Off to the Greatest with you...n/t

[blkmusclmachine]

2. The new standard is to be poor.

n/t

[unblock]

3. this, of course, presumes that there's any merit at all to the downgrade.

which there is none.

the federal government's finances are not the greatest they've ever been, sure, but there's **NO** real risk that any investor in treasuries will fail to get 100% of their principal.

moreover, the deficit is not the biggest risk to eventual repayment anyway. the sluggish growth, high unemployment, lack of coherent, constructive fiscal policy, and structural problems in our economy are **FAR** greater problems.

to the point where INCREASED government spending (on constructive projects that increase demand), even at the cost of an increased deficit (though ideally mitigated with taxes on the rich) would be the best way to improve the federal government's long-term finances.


s&p's action stinks of politics.

it's their way of throwing their weight around to whine that they didn't get what wanted (a balanced budget) for their own political reasons, rather than for the good of the investors they're supposed to be serving.

[flamingdem]

4. How about 1. OUST OBAMA (s+p are repukes) 2. CUT MEDICARE 3. BENEFIT FROM INTEREST INCREASE nt