Source: Fortune
Summary
Elon Musk has endorsed Warren Buffett’s plan to lower the national debt, which is set to reach $40 trillion. Buffett’s plan, proposed in 2011, suggests that whenever the deficit exceeds 3% of GDP, all sitting members of Congress should be ineligible for reelection. Musk shared Buffett’s interview on X, saying “This is the way.” The national debt has ballooned to $38.9 trillion, or 124% of the economy, with interest costs exceeding $22 billion a week. Buffett and others, including Ray Dalio and the Committee for a Responsible Federal Budget, have warned about the dangers of the growing debt.
Our Reading
The numbers tell one story.
Elon Musk joins Warren Buffett and Ray Dalio in calling for action on the national debt. Buffett’s plan to cap the deficit at 3% of GDP has been endorsed by a bipartisan group of representatives. The national debt has grown to $38.9 trillion, with interest costs exceeding $22 billion a week. The Committee for a Responsible Federal Budget warns that the average interest rate on the national debt could exceed economic growth by 2031. The situation sounds familiar.
The incentives are in the right place when politicians’ reelections are tied to the deficit. This is the way to end the deficit in five minutes.
Author: Evan Null
