US economy is weaker than people think, according to the investor Warren Buffett, who currently owns fortune of 70 billion USD and is the second richest man in the world. He considers that the US economy is not in good condition, despite of the recently optimistic data. The billionaire sees the growing gap between the rich and poor of the United States and in his words, it is big problem.
“The Forbes 400 had 93 billion USD in 1982, and they got 2.4 trillion USD now. And that’s 25 times as much”, said Warren Buffett in an interview. “If you’ve been working 40 hours a week, maybe holding a second job, and, you know, you work with the Little League and you’ve been a good parent, and you’re really struggling, you think – What’s wrong with this picture? You wanna change the picture, and apparently, more went into the voting booth and decided that Trump was the answer”, added he.
The owner of the conglomerate Berkshire Hathaway believes that currently the US economy is controlled by the rich, but in no case can not be said to be in fantastic shape. Warren Buffett pointed out that according to statistics in the third quarter, the annual GDP growth was about 3%, but the statistics lies.
“The economy is weaker than people think”, said Warren Buffett. “Calculations showed that the third quarter GDP grew by 2.9%. I do not think so. If they end up revising the third quarter, you know, it’ll get revised downward”, added he.
According to the famous investor, the capitalism and the market system works. However, the system needs some adjusting and more strict rules to reach the goals for the poorer citizens. But Buffett, as he has said in the past, does not think raising the minimum wage is the answer. He continued to stress that an earned income tax credit would do more to boost income than a minimum wage increase. And Buffett continued to be hopeful that economic conditions will improve for all Americans and not just the wealthy.
more recommended stories
Lies, Damned Lies, and Statistics: Phil Gramm and Michael Solon Edition
The popular aphorism that is commonly.
No More Easy Choices: The Death of the Phillips Curve?
“An economist is someone that will.
Stanley Fischer Resigns from Federal Reserve
Stanley Fischer is retiring from the.
Australia Q2 GDP Growth at 1.8%, While Household Savings Declines
The Australian economy expanded by 1.8%.