Standard & Poor’s is the outfit that does this for governments. S&P looks at a government’s outstanding debts, income (taxes), stability of their economy, financial planning, etc. and make a determination on a government’s rating. S&P assigns a grade to their score which describes how they see their financial health. For instance, Scranton’s last score was a BBB-, Wilkes-Barre last got an A, and Pennsylvania received an AA.
Standard & Poor’s recently reworked the score for the United States of America. They reviewed our general credit worthiness, state of our economy, and present debt. The outlook was not good. Because of “very large budget deficits” and “rising government indebtedness” and because “the path to addressing these is not clear to us (S&P)” the United States sovereign credit rating has been downgraded from stable to negative.
During the Bush years (2003-2008,) the U.S.'s general (total) government deficit fluctuated between 2% and 5% of GDP. This was bad enough. Obama and the Democrats however, blew the doors off. Since taking power, they ballooned the debt to more than 11% in 2009 and have yet to knock it back down.
Democrats and their allies will use this as yet another excuse to increase taxes. This isn’t really prognostication, just a simple realization that every solution proposed by Democrats inevitably includes a tax increase.
Bill Whittle does an excellent job of proving just how stupid this line of thought is here:
Washington and Pennsylvania both have a problem. But that problem isn't a revenue problem, it is a spending problem.
It’s time to make a decision. Do you want the money your work for or do you want the loving embrace of your government?
Americans need to decide if they want to remain all things to all people and turn over the majority of their money to the government or if they will once again embrace individual responsibility. Sorry, but you can’t have it both ways. And, because of the runaway spending of the Obama Administration, you have less time to decide. Are you taxed enough already or aren't you?
We say enough is enough.
What say you?