The rating service also pointed to the widening gap between the federal government's tax revenue and its spending, as well as the "limited progress" being made toward solving looming issues like the projected insolvency of Social Security in the early 2030s.While the AA+ rating reflects that U.S. debt remains a trustworthy investment, Fitch's downgrade is a warning signal about the federal government's fiscal trajectory.
In my opinion, this downgrade is both appropriate and long-overdue. We should have pulled back from historic spending after the Covid spree. Instead, the overweight government spending flooded the economy with money that triggered inflation. Meanwhile, neither side of the aisle is willing to take even incremental steps towards addressing entitlement spending which is going to auto-pilot the economy over a cliff.
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"The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management," Fitch said in its announcement.
Must've missed that part, huh? So Republicans loudly threatened to shut down the government --yet again-- and then bent over and took it up the ass --yet again-- for absolutely no political or policy gain --yet again.
But at least the national credit rating took a hit, which is entirely performative art and doesn't even give the recession-hungry GOP an uptick for 2024.
An apt job by the party without serious goals or accomplishments.
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