Warren Buffett Says Anyone Who Works 40 Hours A Week Should Live A 'Decent Life' — Here's What He Proposes Congress Do

The American dream of financial security through hard work seems increasingly out of reach for many. Long hours and multiple jobs are the new normal, raising concerns about income inequality. Enter Warren Buffett, one of the world’s wealthiest, with a surprisingly grounded perspective.

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Buffett believes a full-time workweek should guarantee a decent life. "We have to make sure," he told CNN in 2016, "that in a superrich country, anybody who’s willing to work 40 hours a week has a decent living." This powerful statement underscores his vision for a fairer system where hard work translates to financial well-being.

However, the business-minded Buffett doesn’t think raising the minimum wage is the answer. He acknowledges potential drawbacks: "If you tell me I’ve got to run a business that pays $15 an hour in many industries, I’m going to employ fewer people than before," he explained. I don’t want to employ fewer people; I just want that person to make $15 an hour."

So, what’s his alternative? A pragmatic approach: expand the Earned Income Tax Credit (EITC). This tax credit targets low- and moderate-income workers. By strategically using the tax system, Buffett argues, targeted assistance can go directly to those who need it most without disrupting businesses. "I think the EITC is the best way to put money in the pockets of people who are working for low wages," he remarked.

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The significance lies in addressing income inequality without hindering economic growth. It’s a targeted approach that leverages the existing tax framework to support working Americans. Buffett points out the wealth is there: "Under normal conditions, with more than $60,000 GDP per capita, anybody who works 40 hours a week should have a decent life without a second job and with a couple of kids." This highlights the gap between the nation’s wealth and the realities many working families face.

Buffett’s ideas have gained traction, but implementation remains a hot topic. Critics argue the EITC might not address the root causes of low wages or disincentivize seeking higher-paying jobs. There’s some concern that expanding the EITC could create a situation where individuals nearing the income threshold to qualify for the credit might see minimal financial gain from working additional hours. This could disincentivize work for those on the cusp, potentially reducing their overall earnings.

Proponents see it as immediate support for those in need while preserving economic efficiency. They argue that even a small reduction in the EITC benefits as income increases can still provide a financial boost and incentivize work, especially for those with child care costs or other essential expenses.

As economic policy discussions continue, Buffett’s insights offer a perspective on balancing capitalism’s wealth-generating potential with the need for equitable distribution. His proposal challenges policymakers and business leaders to consider innovative solutions that can improve the lives of working Americans without undermining a market-driven economy.

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