Biden and Obama: The two Democratic presidents of the country’s only credit downgrades
Former President Barack Obama once explained how he would have arranged for a third term as president. He jokingly explained how it essentially involved having a puppet as president in which there would be a “frontman or frontwoman” with Obama directing them what to do while in “his basement in his sweats.” Three years into the Biden administration and these comments make Obama look like a soothsayer.
“If I could make an arrangement where I had a stand-in, a frontman or frontwoman, and they had an earpiece in, and I was just in my basement in my sweats, looking through the stuff, then deliver the lines, but somebody else was doing all the talking — I’d be fine with that,” Obama said to Stephen Colbert in 2020.
After the news of the Fitch downgrade, Obama’s joke now seems like an accurate description of the Biden presidency, mainly since only two presidents have overseen the country suffer credit downgrades: Joe Biden and Barack Obama. Biden’s was this past week with Fitch; Obama’s was with Standard & Poor in April 2011. Both downgrades occurred during each president’s third year in office. And, naturally, both presidents sought to blame Republicans each time. Blaming the GOP was a hallmark of the Obama legacy.
Obama’s downgrade in 2011 was the first time the United States was given a credit rating below AAA. S&P decided to lower the country’s rating to AA+ because the federal government failed to provide a credible plan to confront the soaring national debt at the time, CNN Money reported. S&P also blamed political gridlock, squabbling, and “dysfunctional policymaking” for the decrease.
“The downgrade reflects our opinion that the … plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics,” S&P declared at the time. “The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed.”
Fast forward 12 years later, and Obama’s vice president in 2011, Joe Biden, is now in charge. Once again, a credit agency downgraded the nation’s rating to AA+ from AAA. Coincidence? I don’t think so. The Fitch decision was based on “a steady deterioration of governance over the last 20 years” — the majority of that time occurring during the Obama and Biden presidencies.
Additionally, Fitch explained other factors behind its decision, including “repeated debt limit standoffs and last minute resolutions” and a “high and growing general government debt burden.” Other reasons included the government lacking a “medium-term fiscal framework” and having a “complex budgeting process.”
One of the most essential factors in the Fitch decision was a scathing indictment of “Bidenomics.” For all the rampant celebratory propaganda Democrats have spread regarding the economy under the Biden administration, projections call for “weak 2024 GDP growth” and a mild recession at the end of this year and into the first quarter of 2024.
Fitch also predicted “GDP growth slowing to 1.2% this year” and an anticipated “growth of just 0.5% in 2024.” It’s “Bidenomics” at work. And it should be noted that Biden’s weak GDP growth prediction is similar to the underwhelming Obama economy in 2011, the time of the last credit downgrade, which resulted in a measly 1.5% GDP growth. This is why Democrats are trying to deflect from this reality and pin the blame on Donald Trump or things like January 6th. They want to hide the truth of the adverse outcomes they helped create.
It’s no coincidence that both credit downgrades happened under Democrats — especially Democrats who were part of the same presidential administration. Democratic policies have been hampering the country for quite some time. It’s as if their entire party is immune to accepting responsibility for their political actions, no matter how often they misled the public into believing the opposite. Democrats should look at themselves instead of blaming Republicans for their failures.