Rep. Nan Hayworth, M.D. (NY-19) released the following statement today after the credit rating agency Standard & Poors (S&P) downgraded U.S. sovereign debt for the first time in history:
"The S&P downgrade is regrettable, but not unexpected. It puts the nation on notice that we cannot continue to defer the crucial decisions we must make in order to assure that our economy will be strong and healthy in the future. We need the Senate to pass the responsible long-term budget plan that the House majority passed in April. The House Republican budget reins in long-term spending, promotes economic growth through a streamlined tax code, and ensures that Social Security and Medicare will be sustainable for the next generation."
"In addition, in passing the Budget Control Act of 2011 on August 1, we established an important precedent: any increase in the debt ceiling will be accompanied by spending cuts of at least equal size. This was only the first step in what must be a strenuous process of balancing the federal budget in the months and years to come."
Following an announcement by S&P that the U.S. was being placed on Credit Watch negative on July 14, 2011, Hayworth invited their Managing Director for Sovereign & International Public Finance Ratings, David Beers, to talk about the effects of a downgrade on the economy with House Republicans in a meeting held in the Capitol on July 21. At that meeting, Mr. Beers indicated that a downgrade of Treasury debt could occur, even if the debt ceiling was increased, due to the lack of a long-term plan to reduce U.S. debt.