What are these people smoking?
Reid: S&P downgrade backs Dems’ call for more revenue
Standard & Poor’s decision to downgrade the nation’s credit rating reinforces Democrats’ call for increasing tax revenue, Senate Majority Leader Harry Reid (D-Nev.) said Friday.
In a statement, Reid said:
The action by S&P reaffirms the need for a balanced approach to deficit reduction that combines spending cuts with revenue-raising measures like closing taxpayer-funded giveaways to billionaires, oil companies and corporate jet owners. This makes the work of the joint committee all the more important, and shows why leaders should appoint members who will approach the committee’s work with an open mind – instead of hardliners who have already ruled out the balanced approach that the markets and rating agencies like S&P are demanding.
For whom the downgrade tolls
However, the reaction of the Obama Administration and the ideological left is more telling. The first reaction of the administration was not to blame the GOP, but to attack S&P’s math, as though a couple of trillion makes the difference in this context. My initial hypothesis was that the administration took this tack to try to scare the Moody’s and Fitch — the other major credit ratings agencies — away from following S&P into issuing downgrades. Certainly, there are real-world effects off a downgrade on interest rates, economic growth, and employment that would motivate the administration to this end. Upon further consideration, I would suggest the reaction against S&P have deeper ideological roots.
We couldn’t agree with this woman more: