AFP-VA Statement on Downgraded Credit Rating & Effect on Virginia

August 08, 2011

S & P Slaps U.S., Moody’s Threatens – Endangers Virginia’s Top Rating

Standard and Poor’s downgraded the United States’ AAA bond rating for the first time in history late Friday, and now Moody’s is threatening similar action if meaningful deficit reduction is not achieved. Meanwhile, since Virginia depends heavily on public sector jobs, particularly in Northern Virginia and Tidewater, its own pristine bond rating is now at risk.

AFP-Virginia state director Trixie Averill today issued the following statement:

“This is indeed a sad day for America – and by association, Virginia – as the world now sees that the reckless fiscal habits that have taken root in Washington have exposed the fallacy of deficit spending as a means to prosperity. As a result, Virginia’s own valued credit rating is at risk, through no fault of our own.

“Gov. Bob McDonnell has courageously balanced the state budget without raising taxes by making difficult decisions and making significant cuts in spending when needed. Folks in Washington should peer down from their limestone castles across the Potomac to learn what real leadership is.

“Americans for Prosperity-Virginia has long supported the concept of Cut, Cap & Balance: cut spending, limit future spending and force a balanced budget. It is truly the only way to grab hold of the problem and wrestle it back from the brink of disaster. Now that Washington’s chickens have come to roost in Virginia, we again call on our elected officials in the federal government to buckle down, do what’s right, and cut spending once and for all.”

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