https://www.fitchratings.com/research/sovereigns/fitch-downgrades-united-states-long-term-ratings-to-aa-from-aaa-outlook-stable-01-08-2023
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It’s about trust! The rating tells wealthy people how financially stable the country is as someone guaranteeing that money companies and investors borrow the country will 100% be payed back with interest. Meaning if its downgraded less wealthy people bring their money to the economy to invest in companies or borrow the state and instead take their money to another country with a better rating.
Less money investment means less companies being founded/run meaning less economic growth/activity or less money for the government.
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