The U.S. isn’t a deadbeat borrower, but Congress seems determined to make it one | Opinion
Speaker of the House Kevin McCarthy, R-Calif., leaves the chamber after passage of a crucial procedural vote on the debt ceiling and budget cuts package he negotiated with President Joe Biden, at the Capitol in Washington, Wednesday, May 31, 2023. The decision from Fitch Ratings to downgrade the United States’ creditworthiness from AAA to AA+ is less about this nation’s immediate economic situation and more about its failure to govern.
Spending bills are on hold, and Congress is in an August recess with no clear path forward as another political showdown looms just weeks after the last one over the debt ceiling. This should tell us all we need to know about failed leadership inside the Beltway.The credit downgrade gives the impression that the country suddenly has become a deadbeat borrower. The downgrade makes borrowing a bit more expensive but doesn’t threaten the nation’s liquidity.
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