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I was optimistic about America's future but after Trump's dismal appearance at the G-20 Summit I am not sure. America is now isolated on the Paris Accord, climate change and renewable energy. China and Europe are now in that leadership role and have pushed America aside. Meanwhile, Trump will tout coal, last century's fuel.
Also very concerning is the anti-science, anti-university component of Trumpism. The USA cannot compete globally unless we maintain our leadership position in science, R&D and venture capital. Reactionary populism will _not_ make America again, it will cause us to slip down a notch compared to other nations.
The remarkable thing about what Buffett is saying is that it doesn't even matter who is President or who runs our government. We will continue to have 2% gdp growth year after year solely because of continuous American innovation.
Personally though, I think that's a little optimistic. 2% growth is a lot when you consider that it is actually exponential growth and we already have the largest economy in the world. I don't know if we can manage that over a period of 30 years or 50 years going into the future.
It's the 99% who are confused and out of touch with things. To reach the top 1%, you need to have your wits about you.
The top 20% are doing fine - they (we) are probably the largest upper middle-class population that has ever existed. We have problems, but let's not exaggerate them.
According to Warren Buffett, the U.S. economy is on an inevitable upward trajectory for decades into future, at minimum. The reason for this is that our nation has the greatest entrepreneurs and innovators that the world has ever known and it will continue to have them.
We are pretty much guaranteed a 2% annual GDP growth rate, and this will continue indefinitely - short of a nuclear attack on this nation, which is unlikely. It doesn't matter whether there is a Republican or Democrat administration in the White House. Buffett predicted that the stock market would rally regardless of whether Trump or Clinton won the election.
The richest Americans today are many times richer than the richest Americans were 30 years ago. And 30 years from now, they will be much richer still. This means that the gap between the rich and poor will widen even more dramatically than it has. So, the government must step in to help the poor.
Do you agree with Buffett's assessment about the U.S. economy? Why or why not?
Of course.
America is still and will continue to be the greatest for economic opportunity.
The issue with most Americans is themselves, not the economy. They've lost their ability to adapt.
The remarkable thing about what Buffett is saying is that it doesn't even matter who is President or who runs our government.
No, he's simply assuming that neither party will be able to elect a ballot of buffoons again so soon.
Quote:
Originally Posted by BigCityDreamer
We will continue to have 2% gdp growth year after year solely because of continuous American innovation.
Again dependent on an assumed continuation of generally favorable conditions such as no comet impacts or nuclear wars.
His actual point is merely a counter to the gloom-and-doomers that there are no constraints to keep the US economy from growth rates of 2% and higher, and that such rates are therefore what should be expected.
The top 20% are doing fine - they (we) are probably the largest upper middle-class population that has ever existed. We have problems, but let's not exaggerate them.
Having your wits about you involves more than just dollars. It's in fact more about the difference between being a thinker and a plodder. Plenty among those who make decent money are actually about as dumb as a stick. Those in the top 1% financially do tend however toward being more well endowed over on the cleverness side as well.
Instead, I'd argue that the "difference in wealth" - to the extent that there is one, which is debatable - stems from lower lifelong costs. By this I mean better state-management pension schemes, reducing the need for the individual to save for retirement. Systematized cost of health care (not that I didn't say "free" healthcare), and highly subsidized cost of higher education. Reduce or eliminate the palpable out-of-pocket costs for education, health care and retirement, and suddenly there's more apparent wealth - even if laundry detergent, gasoline and a gallon of milk cost 2X more.
That's probably true. Unfortunately, I don't trust our government to get it right and there's plenty of evidence for my lack of trust. We spend enough on Medicare/Medicaid on a per capita basis that we ought to be able to cover the whole population without spending another dime. Just one example I could give, but it's a similar story with college education.
We spend enough on Medicare/Medicaid on a per capita basis that we ought to be able to cover the whole population without spending another dime. Just one example I could give, but it's a similar story with college education.
Both medicine and education have been corrupted by special interests that make them costly and inefficient.
I'd say that Buffett has a vested interest in actually understanding the long-term implications of inflation, something that can seem relatively rare these days.
Warren does understand what you talk about here, I'm sure.
That's probably why he keeps investing like a mad dog.
That's probably why he keeps investing like a mad dog.
He doesn't have a choice about that.
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