News: What S&Ps downgrade really means for the US economy

After listening to President Obama’s speech today, it helped to answer some of the questions regarding the recent downgrade of our nation’s credit rating. For those that don’t know, Standards & Poor (S&P) downgraded the credit rating of the United States from AAA to AA. As Obama stated, this is not a doubt in the ability of our country to pay our debt, but a doubt in our political system’s ability to act. The President made some great points, many that focused on the fact that we didn’t need a rating agency to tell us that our country needs a balanced, long-term approach to policies.

The Standard & Poor’s rating agency has actually caused a stir among those who feel the downgrade was unnecessary and inconsistent. The other top two agencies maintained AAA and Warren Buffett even said he would give the US an AAAA if there was a rating. S&P’s determination also led them to downgrade the credit ratings of agencies linked to long-term US debt, such as Fannie Mae and Freddie Mac. This has caused markets to fluctuate, but is it something that should worry us all long-term? If similar situations from other countries are any indication, we shouldn’t have too much to worry about. As the President said, “Markets will rise and fall, but this is the United States of America. We will always be a AAA economy.”

What this all really comes back to is the need for Washington to cooperate and form the balanced, long-term proposals necessary to maintain our country as a superpower. The lack of political will to work towards achieving these proposals needs to stop. Combining spending cuts with tax reforms and adjustments to healthcare programs is a necessity for the future of the US. As we look back at those soldiers who lost their lives this past weekend, we need to honor their memory. They served our country as a team and we all need to work together to ensure our generation, and future generations, can enjoy the freedoms we do today.

– Ben Dundas, Web Analyst
Follow me @ben37dBG

Today’s Transportation & Logistics News:
Survey Shows Driver Shortage Limiting Hauling Capacity, Growth Potential
Partisan Finger-pointing Draws Credit Downgrade Warnings While Oil Prices Tumble
OOIL Sees ‘Disappointing’ 2011 Outlook
Trucking Industry Hiring Slowed in July
Obama Finalizing Truck Fuel Efficiency Rules

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