HomePoliticsManchin says America's debt...

Manchin says America’s debt rating downgrade is a ‘historic failure of leadership’ – WV MetroNews

U.S. Senator Joe Manchin, the consistent subject of speculation about a potential third-party run for president, blasted “a historic failure of leadership by both political parties and the Executive branch” after the downgrading of America’s credit rating.

Fitch Ratings downgraded the United States long-term foreign currency issuer debt rating this week from its highest AAA to AA+. Fitch, one of the big three credit rating agencies, offers ratings that describe each nation’s ability to meet its debt obligations.

Stocks have tumbled following the financial news.

Fitch said its downgrade of the United States “reflects the expected fiscal deterioration over the next three years, a high and growing government debt burden, and the erosion of governance” related to other debtor nations “that has manifested in repeated debt limit standoffs and last-minute resolutions.”

Fitch cited a “steady erosion” in standards of governance in the last 20 years, referencing most recently the June bipartisan agreement to suspend the debt limit until January 2025.

“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management,” Fitch wrote.

“These factors, along with several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade.”

Fitch highlighted rising general government deficit, anticipating it will rise to 6.3 percent of gross domestic product this year from 3.7 percent in 2022. General government deficit is the balance of income and expenditure of government. The federal government has spent $1.39 trillion more than it has collected in fiscal 2023.

Fitch noted that its rating could improve in the future through fiscal adjustments to address rising mandatory spending or through funding such measures with additional revenue.

America’s total national debt is more than $32 trillion. 

Manchin, D-W.Va., has received national attention as a possible presidential candidate for No Labels. One of that organization’s platform priorities focuses on “being responsible.”

“Washington must stop spending so much more than it takes in,” No Labels wrote in its platform. “From now on, the annual budget should be reasonable and responsible, which means our national debt needs to stop growing faster than our economy.”

Manchin’s statement today took note of Fitch’s analysis of the decline in governance, erosion of cooperation in the federal government and ballooning national debt.

“This is a stark warning that cannot be ignored. We must act now to fully fund the government and address our national debt before we wake up to a future where America’s superpower status is in jeopardy and we have lost the confidence of our allies around the world. Every American will suffer if Washington politics get in the way of long-term solutions that address these challenges,” he said.

The senator noted another approaching financial question in September, when Congress must pass legislation funding the government or face a shutdown.

“Now, more than ever, it is time for elected leaders from both parties to work together and send a clear message to the world that we will take the necessary fiscal and budgetary steps to restore our credit rating and keep America’s economy strong for this generation and the next,” Manchin stated.

Source link

Most Popular


Please enter your comment!
Please enter your name here

More from Author

Read Now

Coachella Weekend 1 Recap, J Balvin’s Out Of This World Coachella Set, Metro Boomin & Future Top Hot 100 | Billboard News

It’s Monday April 15th, Billboard counts down the top 10 on the Hot 100, we’re running down all the headliners and special guest performers and some notable audience members that went down at the first weekend of Coachella, J Balvin gives us a behind the scene...

ACKO’s game-changing campaign with Disney+ Hotstar for ICC Men’s Cricket World Cup 2023 – Exchange4media

Amidst the exhilarating atmosphere that surrounded the ICC Men's Cricket World Cup 2023, where...

China’s Economy, Propelled by Its Factories, Grew More Than Expected

The Chinese economy grew more than expected in the first three months of the year, new data shows, as China built more factories and exported huge amounts of goods to counter a severe real estate crisis and sluggish spending at home.To stimulate growth, China, the world’s...

Angel Reese Picked 7th by Sky in 2024 WNBA Draft as Fans Hype Kamilla Cardoso Pairing

Welcome to Chicago, Angel Reese. The Sky made the former LSU star the No. 7 overall selection at Monday night's WNBA draft, adding the high-profile forward to the mix alongside No. 3 overall pick Kamilla...

GM says it will move headquarters from RenCen to Hudson’s site in 2025

Detroit — General Motors Co. announced Monday it will move its global headquarters to the Hudson’s Detroit development next year as it works with billionaire mortgage mogul Dan Gilbert's real estate firm to redevelop the Renaissance Center, its current home a mile away.GM CEO Mary Barra,...

Spotify planning to launch Music Pro subscription with lossless

A recent report revealed that Spotify is planning to raise the price of its subscription soon, at least in some countries. And for those who think that paying $10.99 a month for a music streaming platform is already too much, the company may soon introduce an...

Ryan Gosling’s Viral Beavis and Butt-Head Skit Was 5 Years in the Making

People watch Saturday Night Live to laugh, of course, but there are laughs and then there are sketches that last forever. This past weekend, Ryan Gosling hosted SNL and the episode may have featured one of those all-time sketches. What starts as a discussion of AI...

Angel Reese, Caitlin Clark dazzle on WNBA draft’s orange carpet

For the top picks of the 2024 WNBA draft, what they wear could be almost as memorable as where they land.Editor's Picks1 RelatedThe latest crop of hoops prospects -- including Caitlin Clark, Angel Reese and Kamilla Cardoso -- will learn where their pro basketball careers will...

Tesla lays off more than 10% of its workforce – BBC News

By Shiona McCallumTechnology reporter15 April 2024, 13:00 BSTUpdated 1 hour agoImage source, Getty ImagesTesla will lay off more than 10% of its global electric vehicle workforce.In a memo, first reported by news website Electrek, billionaire owner Elon Musk told staff there was nothing he hated more,...

Longtime Yankees voice Sterling retires after 35-year run

The legendary radio voice of the Yankees, John Sterling, is retiring effective immediately after more than three decades in the booth, he and the team said Monday.The Yankees and Sterling made the announcement after The Athletic reported on a planned news conference for this weekend in...