It is no secret that Berkshire Hathaway Inc. (NYSE:BRK.A) Chairman Warren Buffett’s annual shareholder letter has been watched keenly by most of the media, trading and business communities. Though some investors are not ready to accept the arguments of the Oracle of Omaha, he wanted Americans to look at the future with optimism. At the same time, he cautioned people over things like climate change. For about five decades, his annual letters have been watched for his incisive analysis of current, past and future.
Berkshire Hathaway’s chairman agreed with media that there is a growing inequality among Americans despite economic growth witnessed in the country. He said that the next generation would get a bigger piece of the pie than today. However, the biggest question would be how it would be divided. He said there would be a struggle for a higher output of both goods and services.
Buffett said that Congress would continue to be a major battlefield with money and votes continuing to remain the main weapons. He said that lobbying would continue to grow as an industry, which makes sense given that government spending keeps increasing. Buffett has been credited for framing optimism as a reaction to the modern politics of fear with the backing of the history of growth.
Tremendous Output Growth
Buffett said that the United States has witnessed a tremendous growth of output per person during his lifetime. He pointed out that the current GDP per capita in America was about $56,000. In real terms, it is a staggering six times the amount of 1930, the year Buffett was born.
Buffett further sees productivity and efficiency as the two key factors that would remain the main drivers for growth, and that this was certain to continue in the upcoming years. Buffett said that the economic magic of the United States would continue to remain alive and well.