Minnesota’s debt was downgraded today by Fitch, a debt ratings agency. Fitch claims they downgraded the state’s debt because of the ongoing government shutdown and stand off between Governor Dayton and Republican controlled House and Senate. Is Fitch for real or are they just part of the establishment that wants to see more and more debt. Apparently the state of Minnesota is more at risk of default because of contentious budget battles in recent years. Really?
Perhaps this is a threat to Minnesota taxpayers. Since many are unwilling to pay higher taxes, perhaps you can be convince with the threat of having to pay higher interest rates. IF the state government holds the line on raising taxes and limiting the budget, Fitch’s downgrade in the State of Minnesota’s debt just means that we will have to pay the bond holders more money (i.e. interest) at the expense of all the other programs the state has in place…moving money from the poor to the wealthy. Is that what they wanted? Perhaps.