http://www.latimes.com/business/money/la-fi-mo-warren-buffett-sequester-budget-cuts-economy-20130304,0,3145208.story
Warren Buffet puts his two cents in about how Congress has dealt with the deficit situation. Although borrowing may be cheap right now, I do believe that there's some value in making sure the deficit does not get too out of hand. I remember an article published by the European Union that found correlation between more than 1 to 1 debt to GDP ratio and negative effects on the economy. I do not believe that it's healthy for politicians to already come out and play the blame game and predict the economy to take a downturn from this.
However, even though the method has been rough, I am optimistic that the deficit is being taken care of and that it's been a two way street of cuts and increase in revenue. Buffet seems to think that the cuts will not effect the U.S. economy very negatively and he is also in agreement that the deficit should be taken care of.
Hopefully, Congress can start working in a more efficient and sensible manner.
1 comment:
The needs for lowering budget deficit is pretty obvious, but how the government will do it is a very arguable issue. Cutting federal budget and raising tax seem to work together, but many people don't think the budget cut is as significant as the raising tax. One suggestion is to cut the retirement packages for the Congress and Senators along with their medical coverage, putting them on the Affordable Healthcare Act.
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