President Obama and Members of the 112th Congress Credit Rating
On Fri. Aug 7, 2011 the credit rating of the US Government was reduced for the first time in our country’s existence. Standard and Poor decided to reduce the US Government’s credit rating to AA+ from a AAA rating. The recent passage of the ‘’ Budget Control Act of 2011 ‘’ law did not reduce deficit spending a sufficient amount to convince the credit agency to alter their downgrading decision.
President Obama and Congressional leaders of both parties must assume the blame for the nations economic conditions. The President recently said ‘’ everyone must have some skin in the game ‘’ referring to the economy and the private sector. There are 14 million citizens out of work, some collecting unemployment benefits up to 2 years. Unemployment remains at 9.1% after sending $1 trillion on the stimulus package. The national debt limits have been raised 4 times up to $14.7 trillion since Jan. 1, 2009.Since 2009 the deficits have exceeded $1 trillion plus each year since the President and a super majority Democrat Congress ( the House and the Senate ) took control of the US Government.
On 2/13/10, President BarakObama signed Pay-Go Legislation into law. Pay-Go law compels new spending or tax changes to not add to the federal deficit. The President said ''Now, Congress will have to pay for what it spends, just like everybody else ''http://chicagoconsultant.com/page2.php?category=2&post=29
After the Nov 2010 election , the Republicans took a majority control of the House of Representatives in the 112 th Congress. The US Government still remained under the control of the Democrats under the leadership of President Obama and Senator Reid , the majority leader of the Senate. Two thirds of the government was under the control of the Democrat majorities from Jan 2007 to 2011.
The Democrats believe that raising taxes on the so-called rich and cutting loop holes in the tax code will solve the nations problems and generate more revenue to the treasury. The Republicans believe that cutting taxes on everyone and closing tax loop holes on the business sector will increase revenue to the treasury. A solution can be possible only if the parties work together for a common goal as our Constitution requires Congress and the President to do just that. Remember ‘’everyone must have some skin in the game‘’. Sounds like both parties can agree to removing tax loop holes for business and the so-called rich under certain conditions.
The President’s party plan is to remove subsidies to the oil industry because they are making record profits. That may be agreeable to the other party only if all subsidies to all businesses are also cut, only to be fair to all. The Republicans are agreeable to remove tax loop holes only if the tax rates are reduced to offset the cuts in the loop holes. Lower tax rates are beneficial to all parties and have proved that revenue to the treasury increases when business and taxpayers can retain their money before sending the tax money to Washington.
The American people has a dysfunctional government today only due to the ideology of each party not being able to compromise in their beliefs as to what is good for the country.
We the people need to wake up our elected representatives and insist that they start working for the people who elected them rather than the party philosophy. A recent poll taken reported that 80% of the people are for getting rid of all of the members of Congress. The Nov. 2010 election of members to Congress affiliated with the Tea Party have recognized that their recent performance in Congress may be the answer to change the working habits and attitudes in Congress and Washington
So now, how important is it to the US Government to regain the United States of America’s triple AAA credit rating ? The first and immediate challenge to Congress and the President is to finalize the approval of the 2012 budget . The 2012 budget year starts on Oct. 1, 2011 shortly after members of Congress return to Washington. The CBO has already projected that the 2011 budget will again show a $1.5 trillion deficit, don’t sound too good for a credit rating up grade ? Will the nation be in a crisis again because of the credit downgrade ?
President Obama for the past 2.5 years has told the American people that his main goals are to create jobs. Same old talk but still no action on reducing the unemployment numbers. The President deserves an ‘’ f ‘’ for leadership on his performance of the past 2.5 years. The President needs to tell the American people the truth about the economy and on how he plans to work with Congress to arrive at a solution to getting the economy moving in the right direction. The President needs to allow Congress to do their job without interference from the Whitehouse. President Obama’s job is to sign legislation into law and not to interfere with the way our government has been set up in the US Constitution.
When Congress returns to Washington, they have a lot of unfinished work to do. Hopefully Congress will think about adding some ‘’skin in the game‘’. Speaker Boehner and majority leader Senator Reid will pick members to sit on the committee of twelve. Action must be taken on the 2012 budget so as not to receive anymore credit rating downgrades. The House has approved the 2012 budget ( Ryan budget )and the Senate already has voted against approving the House budget . The Senate has the ball, without the Senate’s budget, the 2012 budget will go nowhere. Delays to approving a 2012 budget is not in the best interest of the government at this time. To delay a final approval of the budget may cause other credit rating companies to consider downgrading the US Government‘s credit rating .
The failure of the 112th Congress to remedy the problems that the nation is facing would be catastrophic. Congress must act immediately and decidedly to take the necessary actions to prevent another credit downgrade. In order to satisfy the credit rating agencies , Congress must generate much more in spending cuts and find ways to increase revenue.
During the Deficit Reduction debate, Senator Coburn went to the Senate floor and spoke of the waste presently in the US Government. The Senator with charts in hand pointed out how many government agencies are doing duplicate work of other agencies.
DEFICIT WASTE IN the US GOVERNMENT see video
The cost savings to the taxpayers in removing the waste could be in the area of $9 trillion. There appears to be some room for Congress to immediately act to cut at least some 50% of the WASTE to reduce the national debt and satisfy all the credit rating agencies. The President and some Members of Congress have called for ‘’ everyone to have some skin in the game ‘’. The opportunity to put the government on the right path to reducing costs requires Congress to act ‘’swiftly and boldly ‘’as the President has said many times in the past. The time to give some government skin is now in the hands of Congress.
It is important that the three partners in the 2nd branch of the US Government work in unison , without delay to provide a solution that will be in the best interest of all citizens and taxpayers. It may be equally important to contact your elected representatives and voice your opinions as to their voting positions. Let’s not forget that ‘’United we stand, divided we fall‘’!
May God Bless America.
Your Author Jon Ewall
Jon's website http://www.chicagoconsultant.com/page1.php
Your author is a online marketing consultant of products offered on the internet. Jon’s website blog contains a variety of interesting subjects and articles that he has written