Kathmandu. The U.S. government continues to struggle with a budget deficit. The U.S. government spends more than its income every year. <\/p>\n
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. <\/p>\n
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. \u2019<\/p>\n
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. <\/p>\n
Utah Senator Mike Lee shared the video on social media platform X and asked, “Do you support this amendment?” <\/p>\n
Many gave their opinions in this post. Elon Musk also supported it. He wrote, “100% that’s the right way. \u2019<\/p>\n
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. \u2019<\/p>\n
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. \u2019<\/p>\n
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. <\/p>\n
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. <\/p>\n
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. <\/p>\n
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. <\/p>\n
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<\/p>\n","protected":false},"excerpt":{"rendered":"
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