Sen. Coburn: Middle Class Will Be Destroyed Amid Depression Levels of Unemployment

Monday, 27 Dec 2010 07:37 AM

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U.S. Senator Tom Coburn warned Americans this Sunday of an apocalyptic economic future, with Great Depression levels of unemployment and a destruction of the country's middle class.

The Oklahoma Republican told Fox News that unless Washington cuts spending and reduces the national debt, unemployment in the United States could rise dramatically from less than 10 percent today to 18 percent or more.

At the same time, Coburn says the nation's economic output could drop calamitously — by 9 percent. Once that happens, he predicts the middle class could be destroyed.

“I think you’ll see the middle class just destroyed if we don’t do this,” Coburn told Fox News, adding that he hopes President Barack Obama and Congress can work together next year to cut $100 billion to $200 billion as a “down payment” on debt reduction.

Editor's Note: The new best-selling book "The Great Super Cycle" warns of a coming inflation tidal wave and dollar devaluation — Read More — Click Here Now.

Coburn says the other alternative to the debt crisis is equally gloomy: hyperinflation.

"And the people that it will harm the most will be the poorest of the poor, because we'll print money to try to debase our currency and get out of it and what you will see is hyperinflation," Coburn said.

"If we didn't take some pain now, we're going to experience apocalyptic pain, and it's going to be out of our control. The idea should be that we control it," he told Fox.

Coburn, a member of the White House debt-reduction panel who voted in favor of its plan to cut $4 trillion in debt, says the United States must begin practicing austerity within the next three to four years in order to retain international confidence in its economy and currency.

Some conservatives are uncomfortable with the plan, which includes ways to increase both tax revenues and spending cuts.

Coburn disagrees with those economists who believe cutting spending in a weak economy is incorrect.

“My hope is that [Obama] gets out, holds hands with us, and we make some significant cuts,” he said. “There doesn’t have to be a standoff.”

“What there has to be is real leadership and recognizing the serious nature and the urgency of our problem.”

ABC News reports that budgetary measures are part of the reason why economists polled by Reuters think the eurozone economy will slow to a 1.5 percent rate next year, down slightly from 2010's already sluggish 1.7 percent pace.

Editor's Note: The new best-selling book "The Great Super Cycle" warns of a coming inflation tidal wave and dollar devaluation — Read More — Click Here Now.

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