As the world wheels from the worst global economic recession of 2008 labelled by economists as the worst economic crisis since the Great Depression of the 1930’s which then resulted in the collapse of large financial institutions, downturns in stock markets around the world.
It led to decline in consumer wealth estimated in trillions of U.S dollars and a significant decline in economic activity. Currently the economy doesn’t have so much for us to smile about. With high oil prices, plummeting inflation rates, high oil prices coupled with high unemployment rates the future seems stark. Various measures have been put in place in aid of alleviating the current financial situation, with leaders going as far as asking the citizens for shared sacrifice. This has sparked various reactions from various sectors with most notably Warren Buffet stepping in to advice on this sensitive matter.
Warren Buffett, the chief executive officer of Berkshire Hathaway Inc. a holding company. The billionaire who ranks at the number three with a net worth of fifty billion U.S dollars after Bill Gates and Carlos slim from Mexico claims that he wants for him and his wealthy friends to be taxed more. According to his post in a New York Times Op –ed, he says that when the leaders asked for shared sacrifice, he was spared not only him but also his mega rich friends. He added further on that while the poor and the middle class fight in Afghanistan and while most Americans struggle to make ends meet, he and his cronies continued to get their extraordinary tax breaks.
With the election date drawing closer, Obama is certainly happy with this as he recently cited Buffett’s op-ed during his remarks at the first stop on his presidential Midwest bus tour, “You don’t get those tax breaks” Obama said to the Cannon Falls audience while on his campaign bid for another term in office as president. In the next three months twelve members of congress will be expected to have decided on how to fix the country’s fiscal crisis and cut at least $ 1.5 trillion from the ten year budget deficit.
Buffett, who has spoken out in numerous occasions in favour of raising taxes on the rich urged for taxes to be increased on those who earned more than $ 1 million in 2009, including taxes on investment profits such as capital gains and dividends.
If this is implemented it will not only give the twelve member committee a smooth journey but it will also bring some hope to an otherwise bleak future and to a population that is rapidly losing faith in the ability of congress to deal with the country’s fiscal problems. According to Buffett only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality said Buffet in Op-ed. In truth for the Economy to get back firmly of its two feet a lot needs to be done. Here is a billionaire wishing to pay more than twice of what he currently pays and he is vocal about it. This is selflessness redefined.