Actually, S&P said this: "Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade."
And also this: "The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed."
So basically, if we want our credit rating to not drop further, we need to a) look at both further cuts to spending and revenue growth (Bush tax cuts in particular) and b) stop fucking around with the economy in the balance. And when I say "we" here, I mean Congress. And when I say "Congress" here, I mean the House.
Actually, S&P said this:
ReplyDelete"Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade."
And also this:
"The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed."
So basically, if we want our credit rating to not drop further, we need to a) look at both further cuts to spending and revenue growth (Bush tax cuts in particular) and b) stop fucking around with the economy in the balance. And when I say "we" here, I mean Congress. And when I say "Congress" here, I mean the House.