EDITORIAL: The Poor Will Get Poorer

By EGP Editorial

The world is in a panic over the downgrading of the US economy to AA+ from AAA+.

A rush to sell stocks is hitting stock markets around the globe, but as usual, the decisions by some stock buyers don’t always make perfect sense.

While those dumping stocks are worried about the US economy, they have run to stash their funds in US Treasury Bonds, which seems a little counter intuitive doesn’t it, or so many economists are telling Americans.

What these economists fail to understand is that to most Americans and the rest of the world, a AA+ rating is far better than what many Americans were left with after the last recession, which, by the way, many of those same Americans don’t believe ever ended.

We believe that much of the chaos in the markets has been some time in coming, and Standard & Poor’s downgrade of US credit was only the trigger that led to the stock market free fall.

Americans are only too aware of the unemployment numbers, local and federal government revenue losses, and our elected officials seemingly inability to counteract the country’s poor economic state.

The Congress’s handling of the debt ceiling, and its failure to fix the US economy, continues to leave many, including many of our elderly, in a very precarious state, financially and emotionally.

We believe the stock market will eventually recover much of its losses, because the reality is the largest investors won’t settle for long for the puny earnings from US Treasury bonds.

This latest market crash has also served as a good way to divert attention from the fact that during our elected officials in Washington D.C. have again made sure that the country’s ultra rich will still not have to pay a penny more in taxes to help reduce the US deficit, while blaming the poor, including the working poor, for the country’s financial woes. They continue to push an agenda that includes measure that are likely to leave our poor and middleclass even poorer, and with an insufficient safety net.

But what’s wrong with that? As long as the wealthy eventually loosen their purse strings, and start circulating the wealth among themselves again.

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August 11, 2011  Copyright © 2012 Eastern Group Publications, Inc.

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