January 11, 2008
-- by Dave Johnson
Headline at Drudge: US TRIPLE-A CREDIT RATING UNDER THREAT FROM SOARING WELFARE COSTS...
The US is at risk of losing its top-notch triple-A credit rating within a decade unless it takes radical action to curb soaring healthcare and social security spending, Moody's, the credit rating agency, said yesterday.OK:
The warning over the future of the triple-A rating - granted to US government debt since it was first assessed in 1917 - reflects growing concerns over the country's ability to retain its financial and economic supremacy.
1) Social Security and Medicare are not "welfare."
2) Social Security is not the problem. The problemis that the government owe money to Social Security. Reagan and then the Bushes borrowed money from the fund to give tax cuts to the rich, and now the fund wants sime of it back. (Clinton was paying it back.)
Update - How come the people so concerned about the financial condition of the country - namely the massive debt - never call for tax increases to start paying down that debt? It worked for Clinton and resulting economy of the 90's was good for everyone.
Update II - Why not a call to reduce the huge, vast, unbelievable military budget?
Posted by Dave Johnson at January 11, 2008 9:28 AM
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Re: main post
These projections, remember, don't account for a growing economy with a growing ability to pay for these services... nor do they account for efforts to improve preventative healthcare, etc. Any statistical trend, projected out indefinitely, will ultimately amount to an absurdity.
Re: Update I
... let's put it another way: the full faith and credit of the United States is dependent on its ability to raise revenue to pay off their debts. The elite of America (top 1%) could collectively pay off the national debt in a single year, let alone over a decade or two, without even noticing the dent in their personal credit. What Moodys is really saying here, is that they suspect these people aren't willing to permit that to happen, and that the political elite of this country won't have the will to make them pay up when the time comes.
Re: Update II
No duh. If we weren't spending a trillion dollars a year on the wars in Iraq and Afghanistan, the rest of the defense budget, the intelligence services, and black box budget items, we'd have plenty of money to balance the budget and invest in our people.
Posted by: Thomas Leavitt at January 14, 2008 12:31 AM
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