Financial experts are on the fence about the current state of the US economy. Many people seem to believe everything is on the right track, but that is not necessarily the case. Warren Buffett issued a clear warning to the rest of the world, by highlighting the weakened state of the economy. In fact, he even mentions how the rich guys are still getting the upper hand, rather than creating a more diversified playing field.
Any economy always tends to favor the rich and make life increasingly difficult for anyone else; Warren Buffett acknowledges that fact, as he is one of the richest people in the world. Despite his own financial successes, he is also aware of how the economy is stumbling right now.
Warren Buffett Talks About The US Economy
Addressing this inequality should be the top priority for the next President of the United States. Buffett thinks Trump played his cards better in this regard, as voters know voting Clinton would decrease the odds of fixing this problem. Whether or not that will be the case, remains to be seen for now.
Warren Buffett told CNN Money the following:
“The US economy is softer than I think people think it is. I don’t mean it’s weak, but it’s softer than people think. The GDP, you know, comes out of the third quarter 2.9%. I don’t think it was a 2.9% quarter. If I had to bet, if they end up revising the third quarter, you know, it’ll get revised downward.”
Just because things are not all rosy right now, does not mean things can’t turn around. Capitalism as a system seems to work fine, but the question remains how everything should be distributed. Cracking that code is of the utmost importance. Otherwise, the current status quo will remain.
Raising the minimum wage is not the answer, according to Buffett. An earned income tax credit is a solution he prefers, as it should have a more positive effect. Economic conditions need to improve for all US residents, and not just for those who have truckloads of cash already. It is not five minutes to twelve yet, but the clock continues to tick mercilessly.
Bitcoin enthusiasts are hopeful this financial inequality will drive more people towards alternative financial solutions. It is possible that may occur at some point, albeit no significant changes are expected right now. Bitcoin doesn’t solve the existing financial inequality by any means, but it does have other traits people will come to appreciate.
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