Grossman: Downgrade, Debt Crisis Could Hurt Massachusetts

BOSTON (CBS/AP) — A day after one of the world’s three major credit rating agencies made the unprecedented move to cut the U.S. credit rating, Massachusetts leaders say the state is apt to feel a ripple effect from the decision.

Friday, Standard & Poor’s said there is too big a gulf between Republicans and
Democrats when it comes to dealing with debt, so it’s giving the government a downgrade. S & P bumped the U.S. credit rating down a notch to AA+ from the top status it’s held since 1917.

It’s the country’s first downgrade ever.

WBZ-TV’s Jim Smith reports

While nationally, Republicans and Democrats immediately blamed each other, here in Massachusetts, State Treasurer Steve Grossman said both parties share the blame. He calls the downgrade “a shot across the bow” for Democrats and Republicans.

WBZ NewsRadio 1030’s Kim Tunnicliffe reports

Grossman says while painful cuts need to be made to solve the debt crisis, the issue of possible tax increases should not be taken off the table.

“To cut $4 billion over a 10-year period is going to have a serious impact here in Massachusetts,” said Grossman.

Related: CBS News: Who’s To Blame?

One U.S. Senator, Republican Mark Kirk of Illinois, called for the president to bring Congress back from its August recess to try and address the issues raised by S&P’s report.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

  • Willow

    Good luck interferring with everyone’s vacation. If any of them cared about our credit rating, or the American people, the crisis never would have gotten this our of control. Nice mess we’re in!!!!

  • Vera Carroll

    How about dropping that rating to an “F”

  • Joe

    Every politician in Washington should face an immediate RECALL ELECTION.

    Instead of government for the people and by the people, we get government for the wealthy and special interests, by the wealthy and special interests.

  • lets do them

    The RICH get RICHER and the POOR get POORER. That’s the way it is and that’s the way it will always be. EX #1; The price of oil has dropped but the price @the pump has not. Why do you think that is? We just got fu^^^&^^ By congress. Come on people what the f$&*** are we waiting for? Let’s do this hole f##ing government.

  • K

    “But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.”

    Declaration of Independence

    The Federal Government no longer works for the people. It is no longer for the people nor by the people

    Unless these folks in DC get their acts together and follow the Declaration and the US Constitution, which they have sworn to follow, the states should start to succeed from the union one by one.

    I do not condone armed resistance but what is going on in Washington is not that far from what the British did back in the day.

    Yes we vote but that is the extend of the democratic principles in this nation at this point. Once they are in, they all are themselves closest.

    Sad sad

  • hackwannabe3

    $4 Billion over 10 years, that is only $400 Million. The US just pledged $20 Billion to the Muslim Brotherhood in Egypt!

    How about Billing all the countries we have defense troops in? Germany, S Korea, Saudia Arabia…..

    How about cutting all the Obscene Teacher and Government Pensions that are bankrupting the State? $20 Billion in Unfunded pensions!

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