Senator Tom Coburn Speaks The Truth About Federal Spending

Senator Tom Coburn Speaks The Truth About Federal Spending

During the recent Senate Debt Reduction Sessions Senator Tom Coburn of Oklahoma courageously spoke the truth about the excessive Federal Government spending. Sen. Coburn not only addressed inflated Government salaries and pensions but also excessive military spending, government contracts, educational spending, Medicare, Fannie and Freddie, Social Security, USPS, and much other Federal spending.

 

Senator Coburn on Social Security: “People say it is not broke. We have $2.5 trillion worth of IOUs. Well, the fact is, that money is gone. Congress stole it, spent it on other things. Now we lack the ability to go into international financial markets to borrow that money to put that trust fund whole”

Senator Coburn on Fannie and Freddie: “We know they are broke. They are $190 billion–that you have now committed for, to pay to get them out of hock–Congress created that $190 billion. That is where we are today. It is going to be $300 or $400 billion that we have to pay–we will be required to pay, citizens of this country”

Senator Coburn on Medicare:“Medicare Part A trust fund. Worst-case scenario this year to 2016. That is the fund that solves and pays for hospitalizations for our seniors…The average Medicare recipient paid $130,000 into Medicare. The average Medicare recipient takes $350,000 out. How long do we think that can continue? How long can we continue to tell seniors that we can continue a program based on its utilization rates, based on its reimbursement rates, based on the tax rates, that has a $220,000 difference between what goes out in benefits versus what comes in? It is broke”

Senator Coburn on USPS: “The U.S. Post Office is bleeding every day. Yet we have not fixed it. We are going to do a gimmick to buy some time. But the fact is, we have set it up under a system when they negotiate labor contracts under the arbitration system. They cannot consider the financial health of the Post Office. That would be like paying somebody to mow your grass and saying, they will set the price on it and you cannot negotiate what the price is. Yet they are going to lose $8 to $10 billion this year and more every year going forward, and we have not fixed it, not done anything”

 



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This post was written by:

Jesse Livermore - who has written 99 posts on WTF Finance.


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