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The United States financial markets are the gold standard in global finance. For over 70 years, governments, corporations, and individuals worldwide have wanted to invest in the American economy for its safety and liquidity. Our nation was the world’s envy for its political and economic stability, earning it the most democratic and prosperous among all nations, but this has become controversial.
Before now, politicians from both parties had often safe-guided our economy, putting aside ideological differences by placing the reputation and economy of the United States above any political party. But nowadays, extreme politicians of both parties have set their parties’ ideologies over the country’s reputation and economy. From 1960 until two decades ago, it was a routine procedure for politicians from both parties to raise or suspend the debt limit to avoid an economic impasse for the country. And our voting system had never been called into question ever before. But in the last 20 years, our government has become divided, first in our body politics, then in our monetary policy, thus, jeopardizing the long-held view of America as the haven for democracy and global investments.
In August 2011. S&P was the first credit-rating agency to downgrade U.S. debt. At the time, it cited a “political crisis over debt and spending in our government” – the deadlock over fiscal policy as reasons for its actions. More than ten years ago, that downgrade never improved as bipartisanship has continued to elude our government. Fitch, another globally accredited credit rating agency this week, downgraded the U.S. government’s debt citing fiscal and political instability. “In Fitch’s view, there has been a steady deterioration in governance standards over the last 20 years, including fiscal and debt matters,” the rating agency declared Tuesday. It also said the U.S. appeared to suffer from an “erosion of governance,” which indicates the colliding politics of government over the debt ceiling.
As a result of Fitch’s downgrade, U.S. and global stocks plummeted in huge losses. What does that mean? A downgraded credit rating indicates that the U.S. government will eventually pay more on its debt. It also means the world will consider the U.S. a second-tier credit market with higher risk, thus, inflicting long-lasting adverse effects on U.S. stocks. But how do we get here — a first-tier, globally desirable debt and equity markets losing luster?
We got here because of the polarization of our politics. We have reached a point where our politicians are self-inflicting harm on the system. The root cause of this problem is the dogmatism that drives our politics. Partisanship has hindered the collective decision-making process in Congress. This lack of a meeting of the minds has created significant challenges in advancing important legislation and addressing critical issues facing our nation. To effectively govern and represent the people’s will, Congress must find common ground and bridge the gaps currently dividing them. Only through open and constructive dialogue can we achieve meaningful progress and address the pressing concerns of our time.
Fellow Americans, there is nothing wrong with having a conservative or liberal ideology. It is how we apply it to reality. Let’s restore normalcy in our political system before it is too late. Let us come together to demand better from our politicians and hold them accountable for their actions. We must strive towards a system where the people’s interests rise above political agendas. Therefore, we must begin to heal the nation by electing mainstream conservative and liberal politicians into our government. Despite their ideological differences, they will work together to solve our socioeconomic problems. We do not need extreme political die-hards.
Let’s save our economy and democracy. Let’s vote for mainstream politicians from both parties in the upcoming elections. Because if we do, our government will run evenly, serving most Americans well, and continue to lead the world. Finally, before Americans go to the next poll, Moderate Voices of America will publish names of extremist politicians in both parties for our readers to see so they can vote wisely.
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