by Arianna Coghill
August 2, 2023
Introduction:
Read more here: https://www.motherjones.com/mojo-wire/ ... owngrade/(Mother Jones) On Tuesday, the credit agency Fitch Ratings downgraded its debt rating for the United States from the highest AAA rating to AA+.
The demotion, as some economists including Paul Krugman have argued, is strange and ultimately a bit meaningless. But the apparent reasons behind the decision are worth reviewing. Here’s Richard Francis, Fitch’s senior director, telling Reuters:
Francis may believe he sounds fair, even smart with that analysis. But lumping debt ceiling negotiations—in which Biden successfully averted a government default—with a violent attack on the US Capitol as examples of politicization feels unserious, an entry into the absurd whataboutism of these times. Economists and White House officials have since responded with disappointment.
- “It was something that we highlighted because it just is a reflection of the deterioration in governance, it’s one of many,” he said.
“You have the debt ceiling, you have Jan. 6. Clearly, if you look at polarization with both parties … the Democrats have gone further left and Republicans further right, so the middle is kind of falling apart basically,” Francis said, adding “we don’t fault one party or the other for the fiscal situation.”
caltrek’s comment: This reflects a long-standing tactic of Republican politicians. They argue that government is incapable of being a positive force in the economy, and then due their utmost to sabotage governmental efforts. To the extent that they succeed in such sabotage, they then point to that success as proof of their initial thesis regarding the ineffectiveness of government. It is a very sad thing that many voters let them get away with such nonsense.
