Mulvaney Reacts to S&P Downgrade Announcement


Date: July 26, 2011
Location: Washington, DC

U.S. Congressman Mick Mulvaney (SC-05) today released the following statement regarding the Standard & Poor's decision last night to downgrade the United States of America's credit rating:

"Last night's announcement that S&P was downgrading the nation's credit rating surprised many in Washington. It should not have. Indeed, several rating agencies gave us every indication that the debt ceiling agreement we were contemplating -- and then passed -- was well short of what we needed to preserve our AAA rating. A downgrade is exactly what we should expect when we have so much debt and have shown so little interest in actually spending less.

"When I voted against the debt ceiling bill on Monday, I did so because that legislation did not do nearly enough to get our spending under control, and because it provided no real deterrence to a downgrade. Let's be clear, though: Our credit rating wasn't downgraded solely as a reaction to the weakness of that single piece of legislation. It was downgraded because of the very opposition to fiscal reform that we are still witnessing today. In fact, did the White House pledge to work towards reducing spending after the downgrade? No, they attacked S&P.

"We must now get to work enacting spending reforms and structural changes to a town that is addicted to spending money and creating debt. The Cut, Cap, and Balance Act would do just that. It would reduce spending right away, install spending caps for the near term, and provide for a balanced budget amendment to the U.S. Constitution. By implementing the structural changes called for in this bill, we would put America on a path to not only restore our AAA credit rating, but also create jobs and grow our economy."