U.S. Economy Fears: Should SM Be Worried?

Americans began their weekend in shock when Standard & Poor's, one of the Big Three credit-rating agencies, downgraded the U.S. credit rating from AAA status to AA+ on Friday.

"The downgrade reflects our view that the effectiveness, stability, and predictability of American policy-making and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18," the agency said.

The downgrade has sparked global concern, and all eyes will be on the stock market on Monday to see the potential repercussions of the Standard & Poor's downgrade. Also this past week, the tumbling stock market erased its 2011 gains, and Treasury notes hit record lows.

It's no secret that Santa Monica is one of the wealthier communities in the Southland. SM is the 50th most-wealthy community in California and has a median household income of $63,900, according to AreaVibes.com. The same site says Santa Monica's income per capita is 80.1 percent higher than the state average and 103.8 percent higher than the national average.

That said, Santa Monica has not been impervious to the Great Recession. At last measure, in November, the city's unemployment rate was 10.3 percent, according to California's Employment Development Department. That figure is higher than the national average: On Friday, it was announced that the U.S. unemployment rate is 9.1 percent.

Amid larger concerns about the U.S. economy, do you think Santa Monicans should be worried? Do you believe the city can be economically vibrant even if a double-dip recession happens? Or do you think the well-being of Santa Monica's economy is inextricably linked to the status of the national economy?

Please share your thoughts in the comments box below.