On May 16, 2025, Moody’s downgraded the rating of US debt from AAA (Aaa) to AA+ (Aa1). What does this mean and what does economics have to tell us about it.

> For example, giving me a loan is probably riskier than giving a loan to Amazon

I seriously doubt it. It depends on the size of the loan.

Amazon could easily default on a loan of the kind of size that ordinary people take out (think cars and mortgages) and there would be no repercussions to them. As in, just stop paying the lender, and ghost them, so that they can't reach any person in Amazon.

Rich people and corporations get away with stuff like this. The Ellen Musks of this world get away with not paying rent on entire office buildings, while some poor person gets kicked out onto the street.