Kathmandu. The U.S. government continues to struggle with a budget deficit. The U.S. government spends more than its income every year.
Despite efforts from both sides, u.S. debt reached $33.8 trillion by June 2025. Debt continues to grow. In the midst of this economic crisis, a suggestion from renowned investor Warren Buffett is again in the news. Many big people are supporting this suggestion.
In a 2011 interview with CNBC, Buffett described an easy way to reduce america’s deficit. “I can finish the loan in five minutes. Only a law should be passed that when there is a deficit of more than 3 per cent of GDP, all members of parliament will not be able to run for re-election. ’
This old interview has gone viral again. There has been a debate about accountability in Washington. Tesla CEO and the world’s richest man Elon Musk has also agreed.
Utah Senator Mike Lee shared the video on social media platform X and asked, “Do you support this amendment?”
Many gave their opinions in this post. Elon Musk also supported it. He wrote, “100% that’s the right way. ’
Economist Peter Schiff also gave his opinion on this. He tweeted, “Buffett’s plan is tough but fantastic. The Congress will eventually realise its economic mistakes. ’
Senator Lee is not only talking online, he is also working on it. “I am drafting a constitutional amendment,” he wrote in X. Under this, all members of the Congress will be removed whenever the inflation is more than 3 percent. It is better to disqualify leaders than to make the entire country struggle with inflation. ’
Lee’s suggestion is slightly different from Buffett’s. Lee has linked congress’ capabilities to inflation. While Buffett added it to a loss. However, both are related to government spending.
The U.S. economy is going through a bad phase. In fiscal year 2024, the US GDP was $ 28.83 trillion. At the same time, the government’s spending was $ 6.75 trillion. While the income was $ 4.92 trillion. This resulted in a loss of Rs 1.83 trillion. Which is 6.3 percent of GDP. That’s more than double the 3 percent Buffett mentioned.
The Congressional Budget Office estimates that the deficit will increase to $2.6 trillion by the year 2034. This is due to rising interest on national debt. Which is now more than $ 1 trillion every year.
Economists have long warned of a link between deficits and inflation. Nobel laureate Milton Friedman said, “Inflation is mostly due to government spending and government printing more money, nothing else.” Recent statistics show the same.
Inflation rose to 3.2 per cent in 2024. That’s higher than the Federal Reserve’s target of 2 percent. One reason for this is the government’s spending policy. – Agency
