President Obama followed the government’s credit downgrade with a speech to the nation, but don’t worry if you didn’t get a chance to see it — you’ve probably heard the speech before in his other press conferences. He opened up this talk by discussing the S&P downgrade. Like many on his side of the aisle, he pinned the blame on political squabbles over the past month, rather than the actual numbers that show a $15 trillion debt that is now 100% of our GDP. Also, he tried to cast blame on those that used the threat of default as a “bargaining chip” in the negotiations, even though the threat of default was dubious as best.
He then decided to attack the rating agency’s integrity as well, by saying the markets still look at the USA as a AAA nation, even with the Dow Jones falling like a rock in the first US market day since the downgrade. Even though his speech was meant to sooth markets and reassure people about the full faith and credit of the United States government, he didn’t admit that the mounting debt was a serious concern, and we wouldn’t be in this mess to begin with if we had actually taken the necessary steps to rein it in.
However, Obama made some good recommendations in how we should tackle this problem, namely through entitlement reforms and tax reforms, which the House of Representatives was calling for these past eight months, and in the recent negotiations, yet have been withdrawn due to pressure from Democrats who consider any reforms in government programs to be ideological and destructive, even when the President proposes them first. While he should be commended for trying to not sound like a partisan, he continues to miss the point of the whole debate.
We wouldn’t be discussing a downgrade if all the back-door bickering actually yielded a deal that made the necessary cuts and spending reforms that would put us on a path to economic stability. Instead, he helped pass a deal full of spending cuts that don’t exist, and practically invited the downgrade to occur.
Mr. President, if you want to see America’s economy become stable again, bite the bullet and roll back the size of government. You’d be amazed how much better things would be if the free market were allowed to fill in the gaps.Published in