The Downgrading of the United States of America: Does it Certify the Fiscal Decline of America?
by: Craig Johnson
As the world’s leading fiscal power, the United States has long enjoyed an impeccable triple-A credit rating. This summer, for the first time in history, Standard & Poor’s downgraded the United States’ credit rating to AA+. In this issue of Insight, Professor Johnson explains credit ratings and the actions of “The Big Three” rating agencies, the nation’s forecasted debt burden based on the 2011 Budget Control Act, and the roles Congress, the administration, and S&P are playing in determining the future of U.S. fiscal policy.
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