LARRY PROVOST: Credit Downgrade Makes Trump Agenda More Important To Implement Than Ever

The recent downgrading of America’s credit rating ironically confirms that President Donald Trump is on the right economic track.

Moody’s recently became the last of the three major credit agencies to downgrade the U.S. AAA credit rating. Credit ratings previously had been lowered, several times by other entities, well into the Obama presidency. The U.S. is now ranked AA1 by Moody’s. There are at least two silver linings in this downgrading, both confirming that  Trump is the person to put the United States on a great fiscal posture.

In taking Moody’s at its word that such a downgrade is currently necessary, the first silver lining in such a downgrade is that it may focus more attention on the successes of  Trump’s debt reduction plans. The president has been in office for only four months yet the Moody’s announcement stated that the downgrade “reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.”

According to the U.S. Treasury, America’s national debt to GDP ratio has increased from 100% to 123% in the past ten years (and this includes a dip from COVID era spending). Simply put, in the last decade the debt to GDP ratio has increased by almost a fifth added on to already astronomically high levels.

Trump has been in office for four months after four years of the Biden administration’s astronomically high debts. Yet, in just a brief tenure,  Trump has lowered debt growth by an astonishing 92%. This is very noteworthy and should be