The United States of America faces a deficit problem which is as a result of having a higher expenditure budget compared to the amount of income generated from businesses in the country.Warren Buffett’s 5 minutes deficit solution could actually work out in the long run. The answer is one that includes a law that puts all members of the Congress in a very tight position. He says that suppose a law passes dictating that the budget released by the Treasury should not exceed 3% of the GDP for that year. If it does, all the sitting congress members will be up for re-election.
A deficit is when a substance or an amount of money is seen to be less than what is required to fulfill a specific purpose. The US government generates revenue of approximately $3.422, and its expenditure stands at$4.407. The government struggles to meet its needs based on its income. We must not blame the government entirely for its spending, some causes are way beyond their control.
Some of the reasons why the deficit is so high are because of; high military expenditure used to combat terror attacks in the county. For example, the terror attack on 9/11 caused the government to spend almost twice their usual spending. There also exists a high expenditure to pay off social benefits. Warren Buffett’s 5 minutes Deficit Solution can be instrumental here to force Congress members to pass a law to reduce this expenditure.
The US government as from 2009, took it upon itself to finance public projects. The project helps to curb the challenge of unemployment among its citizens. With these reasons, the government expenditure continues to skyrocket.
Warren Buffett’s 5 minutes Deficit solution is implementable. Perhaps holding a convention and legislatures invited can improve the situation. A totoal of ¾ of the members would be enough to pass the law. The convention idea could work because the congress members cannot pass the same law that will render them jobless.This solution can be very successful in the long run.