This annual royalty paid the world – which would not disappear unless the U.S. massively underconsumed and began to run consistent and large trade surpluses – would undoubtedly produce significant political unrest in the U.S. Americans would still be living very well, indeed better than now because of the growth in our economy. But they would chafe at the idea of perpetually paying tribute to their creditors and owners abroad. A country that is now aspiring to an “Ownership Society” will not find happiness in – and I’ll use hyperbole here for emphasis – a “Sharecropper’s Society.” But that’s precisely where our trade policies, supported by Republicans and Democrats alike, are taking us.Again, let's put this in the "thanks for not paying attention" file. A tip of the hat to the person who recommended this reading to me -- you know you you are. More of Warren Buffett's wisdom on this subject can be found here and here.
Wednesday, March 09, 2005
An excerpt from Berkshire Hathaway's newly released Annual Report: