With the recent election filling the news, there has been an increased focus on the American Economy. While it’s no secret that working class America tends to think they deserve more for their hard work, demonstrated by fighting for an increased minimum wage, it’s less often that you see someone in the top 1% who thinks working class could use some attention.
It seems Warren Buffett has no problem speaking out on this issue— in an interview with CNN’s Poppy Harlow, Buffett was asked who was winning in today’s economy and he admitted it was rich guys like him. Rather than supporting his favor, though, Buffett offers what he thinks could be a solution.
Buffett agrees that the income for working class America needs some improvements, but he disagrees on how to go about it. While most of the working class would opt for an increased minimum wage, there are a lot of long term effects to consider when going that route. Alternatively, Buffett calls for an improved earned income tax credit (EITC) system.
As it’s standing now, there are quite a few hoops to jump through and qualifications to meet to become eligible for an EITC. Buffett stresses that making an EITC easier to receive would do much more to increase income with less adverse effects.
“You want to keep a system where the goose lays more golden eggs every year. We’ve got that. Now, the question is: How do those eggs get distributed? And that is where the system needs some adjusting…. You don’t have to worry about having more stuff. You do have to worry about whether people who are perfectly decent citizens, working hard, are getting enough of it,” Buffet explained.
Buffett continues to look forward to economic circumstances improving for the entire nation, rather than just the wealthy. He believes our economy is not doing as poorly as Trump and many politicians have made it out to be— Buffett says America IS great, and will only become greater.