It's really not all that difficult to understand. US Government spending increased by 28% under the Obama Administration. In order to set things right, we need to cut government spending by at least 28%.
The United States lost its top-tier AAA credit rating from Standard & Poor's on Friday in an unprecedented blow to the world's largest economy in the wake of a political battle that took the country to the brink of default.
S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficit and rising debt burden. The action is likely to eventually raise borrowing costs for the American government, companies and consumers.
"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.
The outlook on the new U.S. credit rating is "negative," S&P said in a statement, indicating another downgrade was possible in the next 12 to 18 months.
You can pat yourself on the back all that you want to and tell the electorate that you won't cut entitlements but there is a price to pay for that policy. And we're paying it. All of the politician's foolish shit-eating grins in the world and self congratulatory B. S. don't amount to a hill of beans when it comes down to numbers.
And fighting a class-envy war by raising taxes only on the job creators won't solve the problem. The problem with socialism, Mr. President is that eventually you run out of other people's money.