Forum Post: Buffet on how to fix congress
Posted 13 years ago on Oct. 19, 2011, 9:08 a.m. EST by yasky2012
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Warren Buffett, in a recent interview with CNBC, offers one of the best quotes about the debt ceiling: "I could end the deficit in 5 minutes," he told CNBC. "You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.
The 26th amendment (granting the right to vote for 18 year-olds) took only 3 months & 8 days to be ratified! Why? Simple! The people demanded it. That was in 1971... before computers, e-mail, cell phones, etc. Of the 27 amendments to the Constitution, seven (7) took 1 year or less to become the law of the land...all because of public pressure.
Warren Buffet is asking each addressee to forward this email to a minimum of twenty people on their address list; in turn ask each of those to do likewise. In three days, most people in The United States of America will have the message. This is one idea that really should be passed around.
Congressional Reform Act of 2011
No Tenure / No Pension. A Congressman collects a salary while in office and receives no pay when they are out of office.
Congress (past, present & future) participates in Social Security. All funds in the Congressional retirement fund move to the Social Security system immediately. All future funds flow into the Social Security system, and Congress participates with the American people. It may not be used for any other purpose.
Congress can purchase their own retirement plan, just as all Americans do.
Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.
Congress loses their current health care system and participates in the same health care system as the American people.
Congress must equally abide by all laws they impose on the American people.
All contracts with past and present Congressmen are void effective 1/1/12. The American people did not make this contract with Congressmen. Congressmen made all these contracts for themselves. Serving in Congress is an honor, not a career. The Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work. If each person contacts a minimum of twenty people then it will only take three days for most people (in the U.S.) to receive the message. Maybe it is time.
Is the "deficit" really the problem, or is it spending priorities?
Social security, medicare, medicaid, etc. make a PROFIT for the government. They are self-funding through taxes.
All of our spending priorities go to DEFENSE. We need to reduce spending on defense and increase spending on . . . the People: infrastructure, water-treatment plants, rail, medicine, student loan debt reductions, foreclosure assistance, new business subsidies.
I agree that the deficit is a problem but that it isn't something we should focus on so much now when we have more pressing issues. In business they refer to debt as "leverage" :-) I also read several articles by economists that state paying down the debt at once by all companies, government, etc,, is actually bad for the economy.
I agree with you. Debt and spending, even defense spending, are really not the problem. Growth, or lack of growth, is.
The US debt to GDP ratio is about 62%. The Canadian debt to GDP ratio is 82%; Germany 75.4%. Both the Canadian and German economies are healthy economies.
http://www.economist.com/content/global_debt_clock
Debt as a political issue was manufactured by the Koch's Tea Party, and the Obama administration got lead into it like the Democratic donkey they are.
In fact, now is the time to get in debt because it is unlikely we can borrow so cheaply again. We should be issuing fixed rate debt (borrowing money) to rebuild America, when the whole world stands ready to lend us money so that we can be competitive again.
The way to reducing the deficit is to invest in our core competencies. We need to seriously ask what it is that Americans are better at than other nations. Hopefully the answer isn't just military might. And when we have the answers, we need to borrow lots of money and invest money. Any good businessman will do the same thing.
Almost all firms except a few like Microsoft are leveraged. It is the present value of future earnings with a controlled cost that are the drivers of good planning. It is earnings we should concentrate on. Debt is really not the problem. As the old Chinese saying goes, "You cannot catch chicken without rice." So borrow some rice.
Yes. The lack of growth is. Exactly right.
Surprisingly it's been so hard for the public to identify the right problems, let alone figuring out a solution to them. That probably speaks volumes to the SCOTUS Citizen's United ruling.
I see the problem for lack of growth as threefold, and please respond because I would seriously love your thoughts:
1) Excess debt (all of our disposable income goes to student loan and mortgage debt; debts that were created on the presumption of ever increasing values, so the principals are inflated and need to be reduced);
2) Uncertainty in housing. People will not hire people to work on their houses, buy new appliances, furniture, etc. because they might get thrown out of their own home due to a debt of 200k for a property really worth 120k.
3) Frozen credit. Banks are sitting on trillions and will not lend for credit worthy borrowers, small businesses, and new businesses. Credit is the lifeblood of the economy, and the banks are now at the center of the economy and screwing it over.
Unfortunately I don't have a solution for this problem. I just wish the people to whom we pay six figure salaries (ie politicians) would solve the economic problem.
Politicians should do their jobs, so that I can do mine without having to continually to tell them how to do theirs. I mean, if the American public has to keep doing their elected officials jobs, why are they paying the politicians 6 figure salaries?
Politicians just want to keep their jobs. They are mostly the kids that ran for student president; they want the power, attention, prestige, authority, and perks with it.
If they get financed by the creditors/banks screwing us, they will write laws to benefit those that keep them in power.
Quote: they want the power, attention, prestige, authority, and perks with it.
So the people should create incentives based on power, prestige authority and bonuses for politicians.
Hence: 1) Incentive pay for congress, the senate and the president, http://www.thepetitionsite.com/1/link-congressional-pay-to-performance/
2) And Change the way powerful committee memberships are assigned.
I'm not sure how memberships are assigned, but I think currently these are assigned by seniority.
Instead, the People need to take back control of these assignments and hold committee members accountable when the nation does poorly. You might say, can't we just vote these poor performers out of power? Unfortunately, no, because they are voted in by some small congressional district for which they just happen to the most popular and maybe even the best candidate. The answer to this problem is not term limits because that politician may indeed be the best person for that district.
However, just because they are the best person in some small district, does not mean they are the best person for All of America, and when they are chairman of some committee, they have disproportionate influence on all Americans, not just those from their district.
We need to change congressional rules for electing committee members and chairperson to prevent failures from holding important and powerful positions. Perhaps this can be done by banning congressmen and senators from being committee members if they were at the helm when the country performs poorly.
I agree with both of your points. My sole concern with money in politics is that it inevitably finds it way.
Yes there is no way to find out without actually trying it out. Ideally someone (political scientist) would write a game theory model of the and study it's effects. Ultimately, money is already in politics through special interests and lobbyists. We pay elected officials with money. Lobbyists are essentially using money to incentivize our elected officials for their own causes. The American public can use it's money, ie the salary we pay elected officials to incentivize politicians to do the right thing for the economy. Of course there are many polarizing issues so it should probably be used sparingly.
To be honest i am really disintrested in what he has to say he may be more honest than most but he is still a banker.
that sound like a good start, but we still need to rebuild the walls of regulation for they can't do this again, now it's all legal:
Here's how we can easily Reform Wall Street: Take away their powers "once again." And a Million People March on The Hill will help get it done!
For example, "We are here Congress because we want to bring REINSTATE the Glass-Steagall Act of 1933 http://www.investopedia.com/articles/03/071603.asp#axzz1aPEc3wX which helped saved our country from the Great Depression by preventing investment companies, banks, and insurance companies from merging and becoming large brokerage firms; instead of just being Banks and Insurance companies--why can't we learn a history lesson here Congress? Btw, why did most of you vote for its final repeal in 1999? http://www.counterpunch.org/2008/09/19/shattering-the-glass-steagall-act
Think about where we are now, it all started in 1999 with the subprime loans Senator Phil Gramm was peaching on Senate floor. CNN's The Ten Most Responsible for Economy Collapse: http://www.youtube.com/watch?v=gKQOxr2wBZQ&feature=related
Furthermore, we also want you to CHANGE the Commodities Future Modernization Act of 2000 http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000 BACK to where it was before 2000, which since has deregulated energy markets and consequently allowed for such scams as The Enron Loophole; whereas in the early 2000's Enron Corp. was charging 250 bucks plus for a kilowatt hour...They all when to jail for this. But, the Enron loophole is still not closed, for example, allowing speculators to resell barrels of oil over and over again before it reaches the gas station owner. It's basically, legal gambling at our expense. What were those lawmakers thinking then? What are you thinking now? Either do the right think, or you're part of the 1%."
Why are oil prices high? The Enron Loophole
http://www.youtube.com/watch?v=zbdtTGYQBMU&feature=related
http://www.youtube.com/watch?v=PNp0y0SjOkY&feature=related
Rolling Stones Reporter: Truth about Goldman Sachs--how they have cornered the markets--basically, The Enron Loophole and the Repeal of Glass-Steagall Act in 1999. http://www.youtube.com/watch?v=waL5UxScgUw
Let's get focused and bring back Glass-Steagall Act of 1933, they got it right 1933, we don't need to REINVENT the wheel because bringing this Act back will create an even playing field once again....and let's finally Close the Enron Loophole, which allowed Enron to charge what they wanted for energy; they went to jail for this; but no one closed the loophole, why? Re-election Monies from the banks and oil companies! The writing is on the wall.
70% of govt spending or what we pay is our social security Medicaid Medicaid system. DOD schooling (especially schools education) are a very small percentage of our debt.
I agree with above listed post.
How about incentive pay for congress, the senate and the president,
http://www.thepetitionsite.com/1/link-congressional-pay-to-performance/
The man is a shill. He's 100% in support of bailouts, as noted by his recent $5 billion cash infusion into Bank of America. Berkshire-Hathaway owns stocks in many, many companies -- so he will do whatever he can to prop the stock market up, even if it means that banks continue to screw the American people.
To be honest, I support the Bailouts as well... or something similar...
If The Big Banks all crashed, we would of been in a Great Depression, so big that it'll make the Great Depression look like the Great Recession...
It might of taken the world down (Because our world is so connected now)
China would of been #1 with the quickness... do you want to be ruled by China?
Absolutely correct. The spending/bailouts unlike Bushs' policies (medicare D, two wars, tax cuts) were reaction to a crisis not just reckless spending. It had to be done. Like it or not,
We are in a depression. The banks are not fixed. They are insolvent, and are only being kept afloat by fraudulent accounting. None of the problems of 2008 have been corrected. We've only thrown more money at it. Look at what's happening in Europe. Despite numerous bailouts, their banking system is on the verge of collapse again. That is what will happen here.
Instead of letting the big banks actually take losses and die, we've propped them up and when they do finally crash (which they will), it will be much bigger than the first crash of 2008. The big banks are horrible institutions and should be allowed to die. The sooner that happens, the sooner we can restructure and get the economy going again. Kicking the can down the road only makes the problems worse.
guru, its amazing how one person can be so stupid. we're not in a depression, its not even a recession (yet), the banks in europe werent bailed out (except ireland), if you let banks die the resulting crash will be unimaginably huge, and the banks are not insolvent. so basically everything you said is wrong which would make you a complete idiot.
So those 1/7 Americans on food stamps, the "official" 9% unemployment, massive foreclosures, deflating credit bubble, etc are signs of growth not a recession/depression?
As an economics major now out in the real world I understand why it is called the dismal science. It equates consumption with growth and assumes infinite growth is possible in a finite world. The banks are insolvent which is why they were bailed out, and Bank of America's Q3 earnings, for example, is legal accounting tricks plus a sell off of a bank they held in China.
As for your Europe statement... holy shit... what? The euro is, and has always been, destined to fail without bailing out its member countries. It is an unfeasible plan to have a monetary union across countries with such variance in their economies. They have had bank bailouts left and right across almost the whole EU. Haven't you heard of Greece? They have been bailed out quite a bit, and since they are greatly in debt a lot of that money goes right through their hands to the banks of other nations.
Maybe if we had soup kitchens like the depression instead of SNAP cards people would understand the severity of our situation. We are in a depression, despite what fudged numbers are thrown around saying we aren't.
I can tell you every time I go out in public the malls, stores are busier than I ever imagined and have ever seen in my lifetime. If this is a recession I can't imagine what these places will be like when the economy is growing. It's insane.
This is genius.
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Isn't Warren Buffet a 1%. Doesn't his Corp still own BILLION of dollars in taxes he hasn't paid since 2005?? Isn't he one of Obama's Czars? Buffest is part of the problem....not part of the solutioin.
He made money, got rich, so what? He recognizes there's a problem. He actually believes the rich should pay more, way more in taxes. http://www.forbes.com/sites/matthewcampione/2011/10/14/warren-buffetts-tax-return-and-what-congress-already-knew/
I agree- just because you're successful/rich doesn't mean you are apart of the problem-it's the greed and the corruption and those who have so much money but still trying to "save" more than others on taxes...seriously what could you possibly do with all your money? Don't you think you as an American would want to give back and help others become successful too? I want to make sure people do not go through the struggles I did in life and are able to live a good life no matter what their obstacles may be.
yeh, I think a lot of the 1% are just swept up in this corrupted system, just like the rest of us...
It's the bad 1%, and the people who does nothing that's the problem...
people are blind by the fact that a very small minority has infiltrated almost all aspects of our daily lives... OWS hopefully can wake up the timid masses!
then what is stopping him from writing a check and sending it in? I am tired of all of these people saying they "think" they should be paying more. Then send the dam check!
he does write checks, he gave over a billion dollars and pledges to give most of his Wealth away to the Bill & Melinda Gates Foundation.
He's just a smart man, who learned he loved stock at a young age, and grew rich. I believe he's a good man too, using us popularity and influence to try and get things changed in America. But he is still only one man.
Warren Buffet pays his taxes as required. It just so happens that the current tax code allows him to pay a smaller percentage that what many of us think he should. Now that he has gotten older, he realizes that vast amounts of money are not as important to him as it once was. In my opinion, before his demise he wants to donate money much of it. Same for Bill Gates. They, as well as the other 1%, screwed people for 40+ years. Their hope is to give back and try to have a nonguilty conscience. Writing a big check to the federal govermnent would be unproductive.
Agree, Government is part of the problem, but they are also part of the solution...
I think Corporate Greed caused the crash of 2008, but Corporations (Businesses) must be part of the solution to bring back the economy.
Consumer Greed is also a problem... but us people, have and must be the catalyst of the solution as well.
We all have some blame in what's wrong with the System, but the question is who's going to lead the resurrection? Is it going to be Corporations, Government or Us?
Doing charitable donations is not paying more in taxes. There's a difference. I am not arguing that the man does good, what I am saying is if he feels he should pay more in taxes, then let him send his check to the Federal government.
so they can waste it? Idk, Government needs to be less wasteful...
I agree with you there, our government is extremely wasteful. So why the push for the upper-crust to pay more taxes? If I had my choice, I'd send nothing to Washington. I'd get just as far if I flushed it down the drain.
why should they pay less? They should pay the same % at least. More cause they can afford to.
But we have to reduce spending... I think the US makes like 3 trillion a year in tax revenue? (i'm not sure on this) So we def. gotta to use it more wisely.
What Warren Buffet says and what he does are two differnebt things. If this movement is about Warren Buffet, George Soros, SEIU it is already finnished. The left have then completey taken it over.
Read my comments above. He's a good man, I believe very ethical. But he is still only one man. The Government is very corrupt, and it takes more then one man to solve the problem. Take Obama, his intentions to change Washington failed... cause he is only one man.
No matter how rich or powerful, it takes many to fight to get real change.
Martin Luther King Jr. didn't do this alone.
You seem to be supporting Obama. He is part of the problem. Jeff Immelt and GE got $126 MILLION stimulus dollars despite making over $6 BILLION profit and paying ZERO TAXES at the same time. BaROKE Obumbler's $852 STIMULUS bill to create JOBS and start SHOVEL READY PROJECTS turns out to be a SLUSH FUND FOR CAMPAIGN CONTRIBUTORS LIKE SOLYNDRA, GE, JEFF DOERR and STEVE WESTLY, other DONORS, fictitious zip codes,etc.. Obumbler blew $852 BILLION, NOW HE WANTS $450 BILLION MORE---SHOW US THE MONEY, WHAT DID YOU DO WITH THE $852 BILLION?? Criminals always return to scene of the crime, Obumbler's BACK TO STEAL MORE MONEY FROM TAXPAYERS! Millions went to foreign banks, $529 MILLION went to Finland to build hybrid cars, MILLIONS went to Hezbollah, MILLIONS TO CRONIES. The same type of CRONIES are on his JOBS BOARD! All we'll get from them is more LIES, DECEIT, FRAUD!
To be honest, idk, I think a. Obama is a tool, the "chosen one" of the Secret Societies to lead man into the "One World Government" where the Elites hold all control.
or
b. Is a good person at heart. Tried his best, but got caught up. It's hard refusing all that money, but he believes if/when he's elected he can change things...
Yeh, the tax system needs reform. I pay more taxes then GE? That's a rip...
To be honest, I think if/when OWS changes things, Obama will welcome us.
If Obama isn't a tool, he'll be saving the good stuff for his second act (2nd term) cause we all know most Prez 1st term is to get a 2nd one.