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S&P Makes $2 Trillion Math Error; Still Affirms Downgrade of U.S. Debt

The bad news: Standard & Poor’s cut its long-term credit rating on U.S. Treasury’s debt to AA+ with a negative outlook late Friday, the first U.S. credit downgrade in history.

The good news: given S&P’s inability to make the right call on the U.S. credit crisis, and its high-stakes arithmetical error, the downgrade may not have its intended effect.

In what the Wall Street Journal’s Damian Paletta called a “wild back and forth” that played out Friday afternoon, the U.S. Treasury Department discovered that S&P miscalculated future U.S. deficit projections by nearly $2 trillion in its downgrade. S&P admitted to the bad math after affirming the downgrade Friday afternoon. But Treasury’s math discovery — and the budget deal brokered by legislators earlier in the week — were not enough to stave off the downgrade, which marks the first time that one of the three main ratings firms stripped the U.S. of it top rating. The U.S. had a AAA rating for 70 years. . .

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History

The 1620 Project

On November 11, 1620, the Mayflower arrived on the eastern coast of North America. She had weathered the slings and arrows of maritime misfortune for almost ten weeks at that point, but the passengers thought the discomfort of crossing a small price to pay for passage to the Promised Land. After all, these were ... Read More
History

The 1620 Project

On November 11, 1620, the Mayflower arrived on the eastern coast of North America. She had weathered the slings and arrows of maritime misfortune for almost ten weeks at that point, but the passengers thought the discomfort of crossing a small price to pay for passage to the Promised Land. After all, these were ... Read More
History

Thanksgiving Is Not a Lie

We live in a time of heedless iconoclasm, and so one of the country’s oldest traditions is under assault. Thanksgiving is increasingly portrayed as, at best, based on falsehoods and, at worst, a whitewash of genocide against Native Americans. The New York Times ran a piece the other day titled, “The ... Read More
History

Thanksgiving Is Not a Lie

We live in a time of heedless iconoclasm, and so one of the country’s oldest traditions is under assault. Thanksgiving is increasingly portrayed as, at best, based on falsehoods and, at worst, a whitewash of genocide against Native Americans. The New York Times ran a piece the other day titled, “The ... Read More
U.S.

Raise the Entrance Fees for Our National Parks

In my role as your go-to purveyor of unpopular opinions, I offer this: We should jack up the entrance fees for our national parks — a lot. One of the many disappointments of the Trump administration is that in spite of his DGAF posturing, Donald Trump has always been a slave to public opinion, which made his ... Read More
U.S.

Raise the Entrance Fees for Our National Parks

In my role as your go-to purveyor of unpopular opinions, I offer this: We should jack up the entrance fees for our national parks — a lot. One of the many disappointments of the Trump administration is that in spite of his DGAF posturing, Donald Trump has always been a slave to public opinion, which made his ... Read More
Culture

On Being Grateful

My mother always enjoyed making Thanksgiving dinner. She took a traditional Southern woman’s pride in being a good cook, following her mother’s recipes, and my family made a rare display of kindness by declining to inform her that she was a fairly dreadful cook, one whose kitchen alchemy on the electric range ... Read More
Culture

On Being Grateful

My mother always enjoyed making Thanksgiving dinner. She took a traditional Southern woman’s pride in being a good cook, following her mother’s recipes, and my family made a rare display of kindness by declining to inform her that she was a fairly dreadful cook, one whose kitchen alchemy on the electric range ... Read More
The Economy

The New York Times Sells Envy

A product always sure to sell, even on Thanksgiving, and especially amid a pandemic, is envy. So I can hardly blame New York Times columnist Farhad Manjoo for capitalizing on a bull market. Lamenting that the portfolios of America’s richest men and women have made a quicker recovery from the ... Read More
The Economy

The New York Times Sells Envy

A product always sure to sell, even on Thanksgiving, and especially amid a pandemic, is envy. So I can hardly blame New York Times columnist Farhad Manjoo for capitalizing on a bull market. Lamenting that the portfolios of America’s richest men and women have made a quicker recovery from the ... Read More