Florida does much better at budgets. DeSantis tore into Biden over Fitch Ratings downgrading the United States from AAA to AA+, making it more expensive to borrow money. Not too long ago the government almost defaulted on its debt so doing business with America is a little more risky. Will a politically divided Congress have a showdown over the next fiscal agreement? It could happen again.
DeSantis tweeted out
We don’t need to go down this road. It’s happening anyway.
“@FitchRatings’ downgrade of the nation’s credit rating from AAA to AA+ is a result of frivolous spending and ballooning national debt for programs like the CARES and ‘Inflation Reduction’ Acts. Florida’s AAA rating remains the standard-bearer, serving as the nation’s blueprint for fiscal responsibility. In FL, we have run large budget surpluses and have paid off nearly 25% of the state debt. National economic decline is a choice.”
Trump was shocked too and responded on his social media outlet. “Fitch just downgraded U.S. Debt. First time in many years. WOW!”
DeSantis could fix this
Fitch put out a press release that this was coming. Standards are dropping. The rating downgrade
“reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions. There has been a steady deterioration in standards of governance over the last 20 years, including on fiscal and debt matters, notwithstanding the June bipartisan agreement to suspend the debt limit until January 2025.”
Fitch had placed the United States rating as “negative” this past May. Projections reflect deterioration. “Tighter credit conditions, weakening business investment, and a slowdown in consumption will push the U.S. economy into a mild recession.”
DeSantis made sure we knew
Because the news wasn’t talking much about it. Both Treasury Secretary Janet Yellen and the White House “strongly disagree” with this change. Yellen thought it was “arbitrary and based on outdated data”, the White House went down the political road.
Karine Jean-Pierre stated,
“The ratings model used by Fitch declined under President Trump and then improved under President Biden, and it defies reality to downgrade the United States at a moment when President Biden has delivered the strongest recovery of any major economy in the world. And it’s clear that extremism by Republican officials — from cheerleading default, to undermining governance and democracy, to seeking to extend deficit-busting tax giveaways for the wealthy and corporations — is a continued threat to our economy.”
