STRIPPED!

Economics is a favorite topic of mine. Let’s Talk About What That Downgrade Really Means—And Who Pays for All This.

On Friday, Moody’s stripped the United States of its last perfect Aaa credit rating—something we’ve held since 1917. It’s more than a symbolic slap. It’s a warning siren that the economic policies of the current administration are leading us straight into a financial brick wall—and it’s everyday Americans, not the politicians or billionaires, who’ll be left footing the bill.

What caused the downgrade?

Moody’s cited ballooning deficits, slower economic growth, and the rising share of U.S. revenue being used just to pay interest on our debt. Translation? We’re borrowing more, paying more to service that debt, and growing less.

This downgrade makes it more expensive for the U.S. government to borrow money. Higher interest costs don’t just hurt Washington—they ripple outward. When the government’s borrowing costs go up, so do mortgage rates, car loans, and credit card APRs. Your future just got more expensive, and you didn’t even do anything wrong.

Tariffs: The “Easy to Win” Trade War That’s Costing You at the Grocery Store

Tariffs are taxes. Period. But despite the spin, the country being tariffed doesn’t pay the tariff—the importer does. That means U.S. businesses take the hit, and they either raise prices on consumers (that’s you), cut jobs, or eat the costs and risk going under.

It’s economic roulette every time a new tariff is announced, changed, reversed, or escalated. And because this administration governs by tweet and tantrum, businesses have no idea how to plan. That uncertainty alone damages the economy—investment slows, expansion halts, and jobs vanish.

And let’s not forget the real-world fallout: from farmers losing export markets to manufacturers paying more for inputs, tariffs don’t “punish China.” They punish Americans.

Tax Cuts for the Rich: Trickle-Down Snake Oil, Again

Let’s be clear: those massive tax breaks for corporations and the ultra-wealthy didn’t “pay for themselves.” They ballooned the deficit, handed record wealth to the top 0.1%, and delivered crumbs—if that—to the rest of us.

Every dollar handed out in a tax break to a billionaire is a dollar that wasn’t spent fixing bridges, improving schools, or lowering healthcare costs. Combine that with reckless tariffs and rising debt interest payments, and you’ve got a recipe for national decline.

Why Credit Ratings Matter

A credit rating is a measure of trust. Moody’s just told the world: “We don’t trust the U.S. to manage its finances responsibly anymore.”

The long-term impact? Higher costs for everything. A downgraded nation can’t lead the global economy with confidence. It undermines the dollar. It weakens our geopolitical power. And yes—it directly affects your ability to buy a house, get a loan, or even retire comfortably.

Bottom Line:
Economic uncertainty, fiscal dishonesty, tariff chaos, and wealth-favoring tax policy aren’t just bad ideas—they’re measurable threats to our national stability. This downgrade is a red flag. It’s time we stop letting political fiction write economic policy—and start demanding leaders who understand the difference between populist posturing and fiscal responsibility.

Julie Bolejack, MBA