Beyond S&P's debt rating downgrade: the deficit

While we all teeter on the edge of our seats watching for more ramifications of Friday's debt rating downgrade, the debate continues over the big issues that preceded Standard and Poor's historic move to drop the U.S. from AAA status to AA+.

For example, two economists quoted in Tuesday's Bradenton Herald are bold in their views about what's really needed to tackle the country's deficit problem.

"The president's debt commission: therein lies the solution to our problems," says Sean Snaith, director of the Institute for Economic Competitiveness at the University of Central Florida. In addition to reform of Medicare and Social Security, the commission recommends tax reform that creates three income levels and eliminates all exemptions.

Snaith says following the commission's recommendations will not only solve the long-term deficit issue; it will reverse the rating agency's downgrade. "We get more revenue, and we address the long-term problem with entitlements that we have to. We make a credible move and a commitment that would have S&P changing its mind."

Richard Coe, an economics professor at Sarasota's New College, points out that even if the country somehow reaches "full employment," we'll still have a $600 billion deficit. His answer: repeal the Bush tax cuts and enact minor reforms to Social Security and Medicare spending.

Coe also echoes other economists' concerns about the constant push -- generally led by Tea Party Republicans -- to drastically cut government spending at a time when the private sector doesn't appear capable of fueling the economy. "We've got to get growth, and I don't see where growth's going to come from without more government stimulus." To take in more of Coe's views on government stimulus, click here.

Be sure and check out Tuesday's Bradenton Herald to read about the local (non) impact of S&P's downgrade.