Drudge Retort: The Other Side of the News
Saturday, January 06, 2018

Warren Buffett: I have good news. First, most American children are going to live far better than their parents did. Second, large gains in the living standards of Americans will continue for many generations to come. Some years back, people generally agreed with my optimism. Today, however, pollsters find that most Americans are pessimistic about their children's future. Politicians, business leaders and the press constantly tell us that our economic machine is sputtering. Their evidence: GDP growth of only 2% or so in recent years.

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To all this good news there is, of course, an important offset: in our 241 years, the progress that I've described has disrupted and displaced almost all of our country's labor force. If that level of upheaval had been foreseen -- which it clearly wasn't -- strong worker opposition would surely have formed and possibly doomed innovation. How, Americans would have asked, could all these unemployed farmers find work?

We know today that the staggering productivity gains in farming were a blessing. They freed nearly 80% of the nation's workforce to redeploy their efforts into new industries that have changed our way of life.

You can describe these develop-ments as productivity gains or disruptions. Whatever the label, they explain why we now have our amazing $59,000 of GDP per capita.

The market system, however, has also left many people hopelessly behind, particularly as it has become ever more specialized. These devastating side effects can be ameliorated: a rich family takes care of all its children, not just those with talents valued by the marketplace.

In the years of growth that certainly lie ahead, I have no doubt that America can both deliver riches to many and a decent life to all. We must not settle for less.

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To believe Buffet you have to believe that a service economy can generate wealth as well as a production economy. In some cases this proves true when Lawyers, Doctors and Politicians collect outlandish incomes from their monopolist position. They have been protected by law, but can also be replaced by machines in may cases.

In the long run, however, the service economy needs a manufacturing, mining and farming community to support it. How has Buffet ever contributed to real production. NEVER. All he has ever done is shuffle paper, buying more and more stocks. He is a parasite.

#1 | Posted by bayviking at 2018-01-05 04:09 PM | Reply | Newsworthy 3

In the coming Robot Economy, people will have to be valued for more than talents valued by the robot marketplace.

#2 | Posted by Corky at 2018-01-05 05:22 PM | Reply

Buffett is my favorite hedge fund guy.
He will be missed whenever he...well... y'know.

#3 | Posted by GOnoles92 at 2018-01-05 06:06 PM | Reply

Own one of the biggest banks in the world, own them while they pull off the biggest banking scandal since bernie madoff....and pretend you are for the little guy!!!

#4 | Posted by DavetheWave at 2018-01-06 09:53 AM | Reply | Newsworthy 2

"In the coming Robot Economy, people will have to be valued for more than talents valued by the robot marketplace."

Says the guy voted most likely to be a bot.

#5 | Posted by visitor_ at 2018-01-06 10:56 PM | Reply | Funny: 2

In the coming Robot Economy, people will have to be valued for more than talents valued by the robot marketplace.
#2 | POSTED BY CORKY

How would YOU describe that value? I'm afraid it, however you define it, won't exist sooner rather than later.

#6 | Posted by rstybeach11 at 2018-01-07 05:42 AM | Reply

"Between the first computation in 1982 and today, the wealth of the 400 increased 29-fold–from $93 billion to $2.7 trillion–while many millions of hardworking citizens remained stuck on an economic treadmill. During this period, the tsunami of wealth didn't trickle down. It surged upward."

And what happened in 1982 Regan and the "trickle down" lie. It will get worse before it gets better, especially when this latest "tax break" really gets rolling in a few years hen the breaks for us pee-ons goes away while the breaks for corporate stays permanent.

#7 | Posted by bat4255 at 2018-01-07 06:25 AM | Reply | Newsworthy 2

#7 | Posted by bat4255 at 2018-01-07 06:25 AM

Nobody has to play the riches' game; if one chooses a simpler life, earning enough to cover expenses, without any plans to become rich and important to others, I believe it is amazing how little one needs to do so. Allowing others to define one's level of success is, in my opinion, stupid and self-destructive.

#8 | Posted by john47 at 2018-01-07 10:48 AM | Reply

#8

I agree,

In my 20's I decided to try and live on as little as possible and found it's not that hard. While focusing on people and quality of life I found money had little to do with it. But to those that chase the buck, and think they will be happy, good luck with that.

#9 | Posted by bat4255 at 2018-01-07 12:19 PM | Reply

#7 and #8, I agree to an extent as we live fairly frugally [except for two drawer food and liquor:) ], but, one must also put together an emergency fund as well a something for your old age as trying to live on SS alone would truly suck.

#10 | Posted by MSgt at 2018-01-07 03:06 PM | Reply

MSGT, what is two-drawer food? Honestly curious because I've never heard this phrase before. Can't find anything using Google on it except for stainless steel industrial kitchen cabinets and meat smokers.

#11 | Posted by madscientist at 2018-01-07 03:13 PM | Reply

#11 | POSTED BY MADSCIENTIST AT 2018-01-07 03:13 PM | FLAG: My error as got a phone call and I 'entered' without proofing. Meant to be Top Drawer foods [[i.e., black angus beef, gourmet meals my wife likes to create such as Chicken Picatta, Veal Marsala and Veal Oscar, Cornish game hens stuffed with wild rice, carpaccio, duck à l'orange, etc.]

#12 | Posted by MSgt at 2018-01-07 05:51 PM | Reply

10-4 ☺

#13 | Posted by madscientist at 2018-01-07 06:02 PM | Reply

Two-drawer food = front of the drawers, and the back of the drawers

youtu.be
[0:53 thru 1:31]

~ Bon Appétit ~

#14 | Posted by PinchALoaf at 2018-01-07 06:08 PM | Reply | Funny: 2

# 10

A 20 yr cash reserve in the bank even if SS dies. Retirement is great. :-)

#15 | Posted by bat4255 at 2018-01-07 07:02 PM | Reply | Newsworthy 1

#15 | Posted by bat4255 at 2018-01-07 07:02 PM

Social Security will not be going broke. The principal behind the plan is people dying without collecting anything, no matter how much they've put in. Actuarial tables have been putting the age for full retirement benefits out further and further; but the new American worker's paradise has people beginning to die at younger ages. No sweat; your SS pension will be waiting for you.

#16 | Posted by john47 at 2018-01-08 12:06 PM | Reply

#10 | Posted by MSgt at 2018-01-07 03:06 PM

The first thing one might learn when one retires is to stop the profligate spending until you determine how much cash you need to maintain your lifestyle.

#17 | Posted by john47 at 2018-01-08 12:10 PM | Reply

Buy and RV, park in the driveway of your oldest kid's house. Run an extension cord and water hose up to the nearest outlet and spigot. Drop in several times a day and stare into their refrigerator for several minutes at a time, nibbling on whatever strikes your fancy and taking what you wish. Play loud polka music from an 800W stereo system inside the RV. Decant liquor from the liquor cabinet and replace the contents with water. Find out the passwords for their NetFlix and Amazon Prime accounts and leech off the wifi router. Etc.

Total cost of living: ~$500/month.

#18 | Posted by madscientist at 2018-01-08 12:18 PM | Reply | Funny: 2

#17 | POSTED BY JOHN47 AT 2018-01-08 12:10 PM | FLAG: Can get comfortably by on my military pension and SS; investment income off stocks and MLPs are just the icing on the cake.

#19 | Posted by MSgt at 2018-01-08 07:33 PM | Reply

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