Stop suggesting America will default on its debt
These reckless comments led S&P to cut the US bond rating. This has damaged the US business community and battered the US consumer. Congress needs to instead focus on nurturing demand in our economy.
Hello Member of Congress,
I am writing because of the recent debt ceiling fight and its effects on the US credit rating. Many small businesses and consumers count on good credit to ensure that they can continue to (1) pay employees (if the business has a credit line) ,(2) have their 401ks grow so that they can retire, and (3) continue to purchase goods. The American economy has suffered for the last ten years from repeated shocks and this is just one more. The consumer is starting to suffer from boxer syndrome- punched in the head so many times he cannot get up any longer. Republicans will be held accountable for this damage if they do not take immediate action to correct it. America did not need to hear that the government would prioritize debt so that interest would get paid- they needed to hear that the debt ceiling would be raised and the US would honor all debt. A credit score is not just your record of paying one group but all groups. America needs to nurture demand. The debt ceiling fight did the opposite. As pointed out in the August 19th US News and World Report article by Newman it has:
1. It has strongly damaged consumer confidence
2. It has cut into growth
3. It created a precedent for ongoing dysfunction, which was directly cited in the Standard and Poor?s downgrade as the reason for the downgrade
4. It has dismayed business leaders.
America needs demand side economics. We need to take both immediate and long term action to stimulate and nurture demand. This can begin with a strong jobs creation bill but eventually will need to address the housing problem. I remain amazed that no such bill has passed the house this year. Please attend to your duties and keep the theater out of the public eye.
Sincerely,
I am writing because of the recent debt ceiling fight and its effects on the US credit rating. Many small businesses and consumers count on good credit to ensure that they can continue to (1) pay employees (if the business has a credit line) ,(2) have their 401ks grow so that they can retire, and (3) continue to purchase goods. The American economy has suffered for the last ten years from repeated shocks and this is just one more. The consumer is starting to suffer from boxer syndrome- punched in the head so many times he cannot get up any longer. Republicans will be held accountable for this damage if they do not take immediate action to correct it. America did not need to hear that the government would prioritize debt so that interest would get paid- they needed to hear that the debt ceiling would be raised and the US would honor all debt. A credit score is not just your record of paying one group but all groups. America needs to nurture demand. The debt ceiling fight did the opposite. As pointed out in the August 19th US News and World Report article by Newman it has:
1. It has strongly damaged consumer confidence
2. It has cut into growth
3. It created a precedent for ongoing dysfunction, which was directly cited in the Standard and Poor?s downgrade as the reason for the downgrade
4. It has dismayed business leaders.
America needs demand side economics. We need to take both immediate and long term action to stimulate and nurture demand. This can begin with a strong jobs creation bill but eventually will need to address the housing problem. I remain amazed that no such bill has passed the house this year. Please attend to your duties and keep the theater out of the public eye.
Sincerely,
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