In U.K. Downgrade, a Warning for America

Moody's has downgraded the Brits' credit rating. Here's why America should take note.

The British government bid cheerio to its Moody's Aaa credit rating last week.
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The message for lawmakers from the U.K. appears simple: get the debt under control, but don't derail the economy. But within that deceptively simple message is a complex economic challenge.

"In the U.K., part of the reason for their downgrade is they've gone through with austerity, they've tried bringing debt levels down, but now they have a shrinking economy," says Pride. "That's the fine line we have to skirt in the U.S.: we have to maintain economic growth, and we have to show fiscal discipline at the same time."