The downgrade of the United States debt by Standard and Poor’s was an embarrassing situation for the powerhouse nation, with the Democrat and Republican parties trying to force the blame of the downgrade on each other.
Obama leading a subprime administration
The reality is that the blame falls fully on the shoulders of the Republicans for linking the deficit-reduction talks to the debt-ceiling. But ultimately where the blame lies is very uncertain. There are accusations flying around that President Obama is leading a subprime administration, and this means that the current US administration has been making loans to borrowers who may struggle in maintaining the repayments. This reason looks like the one that might stick.
The US voters are not naïve and they understand that long-term deficit reduction would not be a pressing concern to the Obama administration unless the conservatives had a hand in the matter. The American people are much more concerned about jobs and anything else at the minute comes second in line to this problem.
Barack Obama’s popularity among his people is slowly falling away, for there to be any chance of him being re-elected he must admit mistakes and co-operate otherwise he will leave his post quicker than when he had been welcomed into the presidency.
Voters in the US are not asking for much, they want proper action to kick start the economy. This simple request is meeting an initial hurdle, voters are questioning whether even more spending is on the cards which will hamper any economic revival.
Enforcing “higher taxes” on the rich will balance books
Many feel that stimulus in the short-term as well as long-term reduction in expenditure is the only plausible way to approach the future. President Obama has been and will be losing the debate if he continues to take a stance in which he believes that enforcing “higher taxes” on the rich will balance the books. The truth is these higher taxes will do nothing of the sort. If Obama is to be successful then he will need to come up with a plan that his electoral centre agree on, otherwise he may as well begin packing up his things from the White House.