Warren Buffett says the U.S. economy is not weak, but it is softer than many people believe. He also says the country needs to do a better job distributing its vast wealth across the population.
Bo McGillacutty, Warren's business sense is, of course, spectacular, but his diet sense, not so much! He must have fairly good genes and he probably practices some degree of moderation in his consumption of mostly unhealthy foods, but if he ate a more plant-based diet-and I'm not expecting him to go vegan even though that would be great-he would be an even healthier looking 86-year-old.
Indeed. I never even acquired a taste for things like Coke, french fries, etc, nor the stock KO for that matter. But I think BRK-B is a good bet for my IRA. :-)
Bo McGillacutty, Maybe he secretly eats beans and rice with a side of vegetables on occasion? I wish BRK-B paid a dividend. That's one of the things Warren Buffett looks for in the stocks he purchases!
America is great for him. He's a one of a kind outside the box thinker. Unfortunately, he is correct. 50 million people have been left behind who lack the right skills for the job they want to get. The earned tax credit is a good start but I think what should be a smarter move is companies hiring and training more. Instead of seeking people with qualified talent, train them. People are overlooked all the time. If companies stop overlooking and train people the equality gap will shrink.
companies training people? why? is training people free of cost? why would they train people and add extra cost when they can brink an Indian who already knows his shit
Warren Buffett is a legend. He has been working very hard to be where he is now. That's for sure. Why? He always knew what he wanted to do and achieve. Simple.
He said the economy is getting more "specialized". While this is kind of true, he should have said "Monopolized". Also, he ALMOST stated the correct answer. Forget the wage laws or tax credits. We need a Universal Basic Income.
Anyone else here think the government shouldn’t have any power and any decision making over anyone and people should have to better themselves to which would eventually better their life styles with no help from any government organization.
I agree that Bernie is technically wrong on minimum wage and trade., but he wants to change the system to get Big Money (banks, monopolies, big oil, pharma) out of government. If he accomplished that, it would more than offset the small losses from subsidizing health care and education (which, in the end, benefits everyone through better quality of life).
What is the primary goal of a business? -Answer- to increase % gain each day safely and at an optimum efficiency The genius of profitable business is that and only that. There is no emotion when it comes down to it. Grow the investment as quickly and safely as possible. You can bet your fucking ass I would move 5 million factories to mexico if it meant I could increase revenue by 30%
Barack Smith the interviewer reminds him that his words move markets and warren obliges by being optimistic, when initially his message was that the US economy was soft. Just a terrible interview all round.
have you tried copying from the best? I don’t get how people think they can profit on their own… And why would you? I mean Warren Buffett, best investor IN HISTORY! Is giving out his investment secrets free for 30 days Here: 4copybuffett.blogspot.com
And people who worked at the former Heinz plant in Leamington, Ontario what they think of Warren Buffett and where that plant got relocated to. (It was Mexico)
I have a small construction Co. I've went thru 2 sets of employees this year. I kept my main guy at 20 an hour. I've lost 4 , 18 year old kids. Two went to bigger Co. 26 an hour 2000 sign on bonus and full benefits. Hired two more 2 months later they went to NV gold mines 30 an hour. These are 18 year olds with no real experience. On my 3rd set now I start 13 or 14 an hour. With Co. truck all expenses paid when out of town. If I try to raise bids to pay better I don't get job. Owners are pushing hard to keep bids down. Something is going to give I just feel it. It's kinda like 08 but a little different.
He knows the market is overvalued, he has a simple method for calculating this, google 'Buffett indicator'. Don't be fooled when he says even if he knew there was a recession he'd be buying the same stocks, this statement is true however he isn't buying your everyday stocks he is purchasing stocks in extremely undervalued industries. He's a decent guy but he understands his influence, if he were to scare everyone and say the market is overvalued and recession incoming it might panic some people.
We need to get the economy running the way it was in the 60's and 70's, where the middle class had a better living. When we went off the gold standard in 1971, the gov. was free to print TOO MUCH MONEY. This made inflation go out of control, and it made it easier for the rich to get richer, and the poor got poorer! So we should have never went off the gold standard, or maybe go back on it, if possible.
Autonomous vehicles will remove many vehicles from the road and begin to make auto-insurance pretty redundant. They are the death-knell for many vehicle manufacturers.
But the money to pay the earned income tax credit has to come from somewhere? Either from taxes on the wealthier or from printing more money out of thin air.
Is earned income tax credit: euphemism for Basic Universal Income? He is right when he says the issue is not "minimum wage". It may not be earned income tax credit, the same everywhere? Cost of living is different in different locations, or cities. Same minimum income may not work in all cities. Maybe expensive cities become depopulated?
There are many different types of specialized skills. A doctor or an engineer is an example of a specialized person who is in high demand. Technology is and will continue to transform the structure of the world's economy.
So what he’s saying is there will be bigger gaps in equality in the future. For our country to get around that as not only a social and political problem but also an economic problem. Employers should keep paying what they need to for workers but have the Federal government devise a scale to bring people up to a minimumly acceptable living income via adjustment to their earned income credit. But when we have a country where we can’t even agree to fund national healthcare- like every other major economy or try to rein in out of control defense budgets without being called a traitor or even trying to create a carbon tax (just jack up taxes on oil, gas& coal !!) to protect a living temperature range for human life. Than how the hell is this country ever going to do a living income level ?!!! Let’s be honest the US never plans ahead to handle social problems - unlike the military and big businesses. Social problems are Always handled in the US after the fact - like riots, mass deaths, large scale disruptions or god forbid another civil war. We didn’t get SS and unemployment insurance until the 1929 depression with the military forming up and attacking protesting veterans on the DC square. When you need to attack your own citizens who are out of work, homeless, starving. Than you see the politicians and the business sector bend to help spread the wealth. And since we have dickheads leading the Republicans who want to cut social protections cause they can’t see themselves raising taxes on the upper levels and getting control of the military budget instead of treating it like a political football to gain votes and hold office-. Than I have little hope for Buffett s idea even if it does seem like a smart move.
Coming to an understanding of the well-being of our society requires a broader discussion. To do justice to the issues and discussion thereof, I have developed a semester-long course. The powerpoint-based lectures have been converted to video format and uploaded to RU-vid. If you have the interest and time, search RU-vid as follows: "course: state of the u.s. economy and society -- fall 2019." The course consists of 17 distinct lectures of varying lengths (the longest of which is about 31 minutes). Comments and questions are welcomed.
more interesting questions: are we laying more golden eggs BECAUSE wages are so low? and can the government afford $15 an hour security given the debt load?
Warren was slightly disingenuous by suggesting that we are an absolute meritocracy. If it was that, then it would not be a problem. The problem with inequality now is that, things you achieve in life is not only dependent on how "good" you are, but also on the family you are born into. Inequality has resulted in stratification that disadvantages poor people by condemning them to bad schools, no health-care etc. thus affecting their chance to be successful in life, even if they have the "merit".
and still nobody wants to address the real problem: How to get every individual to PRODUCE $15/hr worth of labor. Let's face it. Some people just aren't worth $15/hr.
lol!This man is off his rocker. 10:40 which US Factories is he talking about? All those have been moved to foreign countries! US Manufacturing now only makes up 12% of the Economy, meanwhile Government activities made up 20%!
He wont even acknowledge his one granddaughter because she isnt a money hungry person like him. He would rather have a extra few million than a relationship with her...great grandparent???
doodelay increasing minimum wage puts the pressure on businesses (they have to pay their workers more). increasing tax credit puts the pressure on the government (they pay out the money, which they most likely get from the taxpayers or they will just print out the money )
Such a Truuuly Great man, if there ever were any. Integrity beyond reproach. So wise. And such a damn shame that those in power don't listen to him because they are too arrogant, greedy, and stupid.
Firstly, the United States is not a truly capitalist economy. We are a mix of socialism and capitalism and that's a large reason why we have so many economic problems. Get rid of the socialism and you would create a more prosperous free market capitalist nation.Anyway, here's how you succeed in a capitalist economy. You offer a good/service that other people are willing to give you money in exchange for. If you simply want to offer your labor, then you work for an employer and they pay you a wage. If you want to start a business, you offer a product that people are willing to buy. If you want to invest, you lend your money to a business and they pay you interest, and even dividends.But, the bottom line is that you have to do something of value. You don't succeed by simply sitting on your rear end begging people to give you money. Some might, but that only goes so far. The more wealth you desire, the more of a good/service you must offer. The question becomes "how much are you willing to offer?" If you offer little, then you get paid little. If you offer a lot, then you get paid a lot. Buffett started several businesses that people found very useful. He also became a highly intelligent investor. He worked extremely hard to get to where he is today.If you are willing to work hard to offer something of value to others, then you can become just as wealthy.
Big picture thinker - he says the small or short term is not important, and is completely unpredictable. Now is a time for the extremely wealthy. The system is now in place to benefit the mega wealthy. The press is not the enemy of the working and middle class, the system that supports the mega wealthy is the enemy. The market system works - but a relatively fair distribution of wealth should be seen as a necessity. Building a wall is not going to help distribute the wealth.
we can't afford to create a more widely expanded earned income tax credit. the equation is simple, rich people aren't paying their fair share of taxes. not like they need to pay a lot, just their fair share!
...I work 40 hrs a week to support 3 kids and a wife who can't work ATM due to medical issues. I've been trying to improve our lives for years. the american dream is almost completely dead. men like him are to oblivious to see it from the top of that pedestal he's on
no no, the evolution expanded because of the invention of motor, and use of electricity. also, its not that the smarter or skilled you are the more money you make, the problem with capitalism is that you earn not from work but from property/ownership. like you can buy apartments (on credit) in an expanding area and then simply live of rent money. just a primitive example, of how you'll forever earn a great financial living with 0 work per life. that's what was great in socialism, you worked, you earn money. you don't earn from property.
+Harris Tsi Can you blame them? We're constantly told we live in a free market capitalist society. No one with a stake in the status quo will admit it's crony-capitalist (i.e. a corporate welfare state).
+Xu Han - Ohhh, and do the top executives and CEO's take a biggggg hit if the company loses money????? Hellllll noooooooo. Wall Street got RECORD fucking BONUSES the saaaaaame fuckin' year they were bailed out by the U.S tax payers, and almost brought down the entire economy!
Yup I agree from that standpoint, but I just can't justifying buying some of the big stocks, like Apple when its P/E ratio is so out of whack and I don't believe they're gonna double their iPhone sales next quarter. Mind you it will likely continue to move up! I just don't feel comfortable buying stuff like this.
I get you. But there are many other blue chip stocks to choose from. Keep in mind, America has the lowest level of stock ownership in 20 years, yet stock ownership for the wealthy is at a new high.
Are you thinking we'll see a 25-30k Dow as some suggest? It would surely suck to be on the sidelines while this happens. But in 2008, I was all out by April and May that year, but then got sucked back in throughout the summer and suffered the crash. I just don't want history to repeat for me lol
I think that we have reached a rare point in history where a confluence of disparate factors across the board (financial, governmental, geopolitical, climate, technological, demographic, etc) have created the conditions for a perfect storm wherein little can be predicted with reasonable certainty because there hasn't been a precedent in generations for what is happening now... world wide, mind you. Much of the valued financial wisdom, common sense and knowledge of old is now mere shibboleth. Market volatility is the one sure trend which is causing conservative investors to diversify across the board (gold, blue chip stocks, property, art, short term bonds) not necessarily to grow wealth, but rather to keep/maintain it. But by the same token, volatility and uncertainty also attracts speculators -- some of whom will no doubt score big overnight. As per your question regarding the Dow, if you simply wish to maintain what you have, you might want to think about parking a portion of your wealth there. If its good enough for someone like Buffet, it should be good enough for anyone else who has the means. Perhaps i'm mistaken, but the way I see it, is that if stocks are are owned by an overwhelming majority of rich and affluent people, they simply won't let it crash.
So said that he is proud of how many people in his position have more than tripled their wealth, but in the same breath, when asked about paying the people who run his businesses a decent wage he says he would rather have less workers than share earnings with the people that work for him. That's the governments job? These corporations push people to welfare then complain that they are on welfare all while their own wealth grows....Its not like he can take it with him!
PaintingbyAnnette umm Berkshire Hathaway employees have a very generous profit sharing plan. I wish more CEO’s were caring of their employees like Warren.
Single moms on welfare already get earned income credits + benefits that raise their incomes to well above $15/hr, but it's only led to a massive increase in single mother households since the 60s along with the negative outcomes for their children from being raised in single mother households. Warren is a smart guy, but he lives in a bubble on this one. Welfare is not the answer.
+The Triggering So what is the answer? Recent advances in AI (deep neural networks, etc.) are bound to significantly reduce employment in the next few decades. These technologies essentially lead to trainable robots that can outperform many types of workers. To me welfare, probably in the form of a Universal Basic Income, is the only solution that won't see more than half the US population starve. In particular those who depend on their physical and intellectual labor to earn a living will gradually find it very difficult to find employment. Of course, if you own some capital (land or lucrative business), you'll be fine. But even business will find it difficult to compete with the likes of Google and Amazon in the future. These companies have the capital, tools and intellect to perform much of the work in our economy.
+The Triggering So in some sense I agree with you: Warren lives in a bubble. But it's not the bubble you're talking about. It's the bubble that assumes jobs will always be available to most people. There is no such law in nature. Humans are only economically valuable while they can outperform technology. The trend is obvious.
hmm. what about all the millions of college degree workers in poverty. I must be missing something here. plus. we need people to stock the shelves, clean the businesses, and wait on customers, why is that looked at like low class, low pay jobs anyway? they are needed for business success too.
You say "college degree workers", as if these people are somehow special and should never face any hardships. Having a degree does not automatically entitle a person to enter the pearly gates of financial freedom and cushy high paying jobs. Nor does a degree automatically mean a person is super intelligent and a better performing employee than a non-degreed person. I have take many college and university courses, however I have never completed my degree and I will continue to take classes and courses throughout my working career, however employers will often overlook me for a position, in favor of the degreed person. In three of my past positions I had to fix and correct the costly mistakes made by two MBA degreed person and one who was working on his MBA. Due to greedy colleges and banks, everyone is pushed to go to college, even persons that should not go to college or perhaps should get some years of life experience before entering college. Even though some of these people made it through college and obtained their degree, they are really unable to apply themselves and the knowledge to their job, thus they should be cleaning the businesses, stocking shelves or waiting on customers.
Chrissolon I'm saying college degrees should benefit people to a good paying job. but now a days the companies are so greedy and selfish they still pay low wages to to people even with doctorate degrees that they worked hard for and spent a ton of money on. my point is that even sales clerks and maintenance workers without a college degree should be paid better wages because without them the company still would not do well.
@ Gary bigie - I agree that the majority of corporations and companies are greedy and do not pay much more than "sustenance wages". However I do not agree that college degrees on their own should entitle a person to a good paying job. To say a person "worked hard" for a degree is erroneous at best. I have not completed a degree, however I have completed A LOT of college classes and none were hard work or a struggle. In high school I worked on a farm, now that is working hard. During my first two years of college, I worked in a warehouse hand loading and unloading rail cars, now that is working hard. Today a person gets their degree and believes that it as "hard work" that now entitles them to a high salary job, even though they haven't proven themselves to be able to do the job or any job. I as I already stated, I have had to correct the work of an overpaid MBA more than once during my career. "Spent a ton of money on" is correct. 50%, of not more of the college courses are worthless fluff courses that provide a person with nothing of value towards a chosen career or job. That's why I will never have a degree. While I will take career driven specific courses, I refuse to take the worthless fluff courses that is required to complete a degree. The colleges and banks are the greedy culprits who have over-inflated the costs and values of a college degree, and wall street has bundled all the student loan debt into asset backed securities like they do for mortgages.
Chrissolon yeah, I never finished college either. I am almost 60 now and work hard. on my feet nonstop all day. stocking supplies, waiting on customers, answering the phone, cleaning, returns, on and on work. I make less now then I did back in the early 80s even. and no benefits. have to buy my own health insurance at $750 a month. luckily I saved enough money in my younger years to survive because can't make it on these paychecks now a days. but, I work with people with college degrees and they don't make much either even though they do know more than me. I'm not saying pay them big wages but I do think they deserve more. and yes, I have met people with college degrees that actually don't deserve much they do such a lazy and unqualified job. but I do feel there are a lot of very educated college workers that are paid way to cheap too.
