The downgrading of the US credit rating down from the highest level to a notch below is sending waves through the global economic community. Everyone is jittery. You have to ask yourself why get nervous now? We all have known this for some considerable length of time. The rating agency probably should have done this years ago and should have moved with a stronger hand than it has.
It isn't only the US. A world economic reality check is well overdue.
Don't get me wrong. The United States is not broke. The United States is a very rich nation. In fact most of the countries in the Western World including, those in the European Economic Union, are doing very well. It is their government's that are screwed up.
We have all heard the right wing economic mantra about needed corporate tax cuts, lower royalties, business incentives and tax breaks for those who are best able to carry their fair share. We have been told again and again. "If it is good for business. It is good for the country." To my amazement voters bought in so for decades now, we have seen the tax burden shifted incrementally to the middle class.
The simple truth is that business is clearly, not pulling their weight. Any hint of increased taxes or royalties and they threaten to pull up stakes and to move their operations to the third world. Business has no loyalty so who do we pander to them? How many times have we seen multinationals pull up stakes after taking millions in government grants for retooling. How many corporations feel the need to contract services off-shore, putting those who built the company up from scratch out of work, before we say "enough is enough?"
I am convinced that future generation are going to look back at this time, shake their heads and wonder, "What were they thinking?"
The western world isn't broke. It is just misguided and gutless.
|Bean counters, what do they know?|