America's Credit Rating

Mr. THOMPSON of Pennsylvania. Mr. Speaker, this week the United States House sent a clear message to the White House that it's time to address our Nation's growing debt crisis and get serious with real budgetary reforms so that America can meet its budget and credit obligations at home and around the world. There's good reason why the dollar is still the world's gold standard when it comes to credit ratings and that the U.S. is seen as a wise investment around the world.

A first-rate credit rating, which the United States currently has, means there is nothing for lenders to worry about. It lets investors know how likely a borrower can pay back a loan, and that they will receive a good return on their investment. That's why I can't emphasize enough the importance of our Nation's credit rating. A downgraded credit rating would erode confidence in our economy and reduce certainty for businesses, investors at home, and abroad. We must work to ensure that this never happens by reforming spending and fixing our debt problem. Make it so that there is not one doubt when it comes to the creditworthiness of the United States.

In April, Standard & Poor's lowered the outlook on the United States' credit to negative. S&P's rationale: the U.S. has a large debt and deficit compared with other highly rated nations, and unlike with those other nations, ``the path to addressing the debt and the deficit is not clear to us.''

To be clear, this warning from the S&P was not over the debt limit debate, but because Washington has no plan to tackle its massive debt. Since 1975, there have been at least nine examples when clean debt limit bills have failed to pass in either the House or the Senate. And remember, in 2006 then
U.S. Senator Obama voted against a clean increase of $781 billion. In each case, days, weeks, or months later a debt limit was ultimately enacted.

So again, it's not about the debate. We've seen this discussion many times over the last several decades. But it is about world markets losing confidence in our ability to implement those needed reforms and address our growing $14 trillion debt.

Over the past 2 years, we have seen the largest budget deficits in the history of the United States. This, along with our structural deficits due to insolvent entitlement programs and the rising cost of health care, is the reason we face serious issues regarding the confidence in our ability to make good on our commitments. In April, the United States kept its AAA rating. Unfortunately, as S&P warned, if we fail to act on these reforms, this could happen.

Raising the debt ceiling without significant structural spending reforms would send a signal to the world that America lacks the political will to restore fiscal sanity and meet our obligations. Unfortunately, many of our Democratic colleagues have continued to ask for a clean up-or-down vote on raising the debt limit, including most recently when more than 100 Democrats sent a letter to House leadership requesting an up-or-down vote on the issue. Earlier this week, that request was granted, and the legislation's failure demonstrates that any plan to raise the debt limit without dramatic steps to reduce spending and reform the budget process is unacceptable to the American people.

With any hope, we sent a clear message that it's time to stop with the political pandering and get serious about bringing about real budgetary reforms. It's unfortunate, however, Mr. Speaker. The problem has been identified. While tough decisions must be made, the solution is in our reach. What we lack is the political will to lead and take action.

Mr. Speaker, if we don't act boldly now, the markets will act for us very soon. The world is watching, and we can no longer afford to kick this can down the road. Our Nation's debt crisis offers us the political will to act, for the greatest threat to our economy and our children's future is doing nothing.

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