Oscar: Wow….everyone is talkin’ bout how them downgraded America.
MacIntosh: Yep….busy blaming each other. The right says it’s because we didn’t cut spending enough and the left is saying it’s because we will not raise revenues.
Oscar: Which one is it?
MacIntosh: Neither. It’s the teabaggers.
Oscar: The teabaggers caused the downgrade?
MacIntosh: That’s what S&P says in their report.
Oscar: It says that?
MacIntosh: S&P says “the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened”
Oscar: So they are saying the way we make our economic decisions is broken.
MacIntosh: Yep. Then just to make sure people get the message they say “We have lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate….will remain a contentious and fitful process.”
Oscar: Looks like S&P peoples don’t like hostage taking as a policy.
MacIntosh: Exactly. But just to make sure they added more… “ The political brinkmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable that what we previously believed.”
Oscar: So its wasn’t because we spend too much or because we tax too little….they just don’t like they way we is making decisions.
MacIntosh: Yep. And, I think predicting how people would spin this, they made a special point of saying “Standard & Poor’s takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.’s finances on a sustainable footing.
Oscar: So is all the politicians working now on how to improve theirs process?
MacIntosh: Nope. The right wing is saying it’s because the left will not cut entitlements and the left wing is saying its because the Republicans will not raise taxes.
Oscar: Which just proves S&P’s point.
Oscar: Howse did we lose our ability to compromise and work together.
MacIntosh: Teabaggers. The new teabaggers in the new congress were willing to let the country default to get their way. They swore they would never raise taxes and refused to negotiate…S&P, for one, thinks they should have sworn to do what is best for the country.
Oscar: But they thought that not raising taxes was the best thing for the country.
MacIntosh: Everyone always thinks what they are doing is best…its what’s we do when we can’t all agree that S& P does not like.
Oscar: (Southern accent) Whats we have here is a failure to communicate.