Sunday, May 7, 2017

Warren Buffet's Woodstock For Capitalism Meeting

Warren Buffet has made his investors very rich, along with himself, by managing their money.  His annual meeting with his investors is called the Woodstock Of Capitalism because it is love fest between Buffet and his happy investors.  It also gives Buffet a chance to sound off about his investment decisions, and other issues that concern him.  His comment on the Republican healthcare bill was short and to the point.  He called it an excuse to give rich people like him a tax cut.  Unlike most Americans he understands that ehe Republican plan is not about healthcare.  It eliminates a tax on wealthy Americans that provides $800 million over 10 years to fund Medicaid which provides healthcare for millions of our most needy citizens.  It was more important for Republicans to cut taxes for wealthy Americans than to provide healthcare to needy citizens.  Buffet said that rich people like him did not need a tax cut that harmed our most needy citizens.  Unfortunately, most Republicans do not share his opinion.  The Republican Party exists to make rich people richer.  They defend that position by telling their less wealthy supporters that it will make them richer too.  Even if that does not happen,  less wealthy Republicans seem to resent providing benefits to "less deserving people".  Denying them benefits,  is enough of a benefit for many Republicans.

Buffet claims that the real problem with our healthcare system is that healthcare costs grow much faster than GDP and much faster than inflation.  Republicans seem to be less interested in that problem than they are in forcing the healthcare system to behave more like the market for commodities that are not essential to health.  The pricing system should behave like a rationing system.  People should only buy what they can afford.  

Buffet is also a critic of CEO compensation packages that continue to grow much faster than the benefits received by shareholders.  He blamed compensation consultants, hired by compliant corporate boards, to justify the overly generous compensation packages.  Buffet sits on a number of corporate boards; he is very familiar with how the system works.  He also understands why he is never asked to serve on corporate compensation committees that hire the consultants.

Warren Buffet is one of the richest people in the world.  The world would be a much better place  if more of our most successful people shared his value system.

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