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The U.S. government has been running budget deficits for years \u2014 consistently spending more than it collects. Neither the Democratic nor the Republican Party has managed to rein in the red ink, but legendary investor Warren Buffett once offered a surprisingly simple fix.<\/p>\n
“I could end the deficit in five minutes,\u201d Buffett told CNBC\u2019s Becky Quick in a 2011 interview (1). \u201cYou just pass a law that says that any time there’s a deficit of more than 3% of GDP, all sitting members of Congress are ineligible for re-election.\u201d<\/p>\n
Now, that old clip is going viral again \u2014 and it’s gaining fresh support in high places.<\/p>\n
Senator Mike Lee of Utah reposted the video on X (2), asking the public, \u201cWould you support this amendment?\u201d<\/p>\n
The question sparked a wave of responses, including one from Elon Musk, CEO of Tesla and owner of X, who replied: \u201c100%. This is the way (3).\u201d<\/p>\n
But Lee isn\u2019t just crowdsourcing opinions. He\u2019s trying to turn the idea into a reality.<\/p>\n
\u201cI\u2019m drafting a constitutional amendment to oust every member of Congress whenever inflation exceeds 3%. It\u2019s better to disqualify politicians than for an entire nation to suffer under the yoke of inflation,\u201d he wrote on X (4).<\/p>\n
While Lee referenced both inflation and deficits, his logic echoes Buffett\u2019s attempt to tie lawmakers\u2019 job security to the nation\u2019s fiscal health.<\/p>\n
Lee has also shared his thoughts about fiscal responsibility on his website, where he writes, \u201cThe current system is set up to spend too much and borrow more. It is a downward spiral with only negative economic consequences (5).\u201d<\/p>\n
Economists have long noted a connection between excessive government spending and inflation. The late Nobel Prize\u2013winning economist Milton Friedman once famously said, \u201cInflation in the United States is made in Washington, and nowhere else (6).\u201d<\/p>\n
But forcing accountability into a law \u2014 especially one that threatens every member of Congress with job loss \u2014 is a heavy proposal.<\/p>\n
Buffett suggested that debt be limited to 3% of GDP. According to the Congressional Budget Office, the federal budget deficit was $1.8 trillion for fiscal year 2025, about 5.9% of GDP (7). That means U.S. debt is nearly double Buffett\u2019s recommended threshold.<\/p>\n
Read More: Approaching retirement with no savings? Don\u2019t panic, you’re not alone. Here are 6 easy ways you can catch up (and fast)<\/a><\/p>\n By Buffett\u2019s rule, every sitting member of Congress would be out of a job, and X users were quick to take notice.<\/p>\n \u201cThe only problem is that the people we are suggesting be fired are the ones who get to vote on that. And they’re never going to vote for their own cancellation,\u201d X user Lorrie Ann wrote. \u201cThis is why we need term limits and why they won’t even entertain the idea!\u201d<\/p>\n Even though Musk backs Buffett\u2019s proposal, that\u2019s unlikely to be enough to get this kind of policy across the board. Realistically, the odds are slim that the U.S. undertakes a Buffett-style solution to America\u2019s deficit problem.<\/p>\n The good news is, there are plenty of tactics you can use to improve your own fiscal health \u2014 and in this case, your vote is the only one that counts.<\/p>\n Here are a few ways to avoid running a deficit at home, and how to start building a personal surplus for 2026 and beyond.<\/p>\n Trimming expenses is one way to create a surplus \u2014 but boosting income can be more powerful. While asking for a raise doesn\u2019t always lead to results, there are ways to earn money without earning a promotion or clocking in extra hours.<\/p>\n This is where passive income comes in as an ideal income stream, without any added work.<\/p>\n One of the most popular ways to tap into passive income is with real estate.<\/p>\n When you own a rental property, tenants pay you rent each month \u2014 providing a steady stream of cash flow. It\u2019s also a time-tested hedge against inflation, since both property values and rental income tend to rise along with the cost of living.<\/p>\n Of course, purchasing a property requires significant capital \u2014 and finding the right tenant takes time and effort. But thanks to new investment platforms like Arrived<\/a>, you don\u2019t need to own a property outright to gain exposure to real estate.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100<\/a>, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase, and then sit back as you start receiving positive rental income distributions<\/a> from your investment.<\/p>\n Owning a rental property sounds great \u2014 until something goes wrong. One bounced check and your rental income disappears.<\/p>\n But institutional investors don\u2019t face that problem. Their portfolios are diversified across hundreds \u2014 sometimes thousands \u2014 of units.<\/p>\n Now, accredited investors can tap into that same approach through platforms such as\u00a0Lightstone DIRECT<\/a>, giving you access to institutional-quality multifamily and industrial real estate \u2014 with a minimum investment of $100,000.<\/p>\n Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.<\/p>\n Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles \u2014 including a 27.5% historical net IRR and a 2.49x historical net equity multiple on realized investments since 2004.<\/p>\n With Lightstone DIRECT, you\u00a0gain access to that proprietary deal flow<\/a>.<\/p>\n Here\u2019s the kicker: Lightstone invests at least\u00a020% of its own capital in every deal<\/a>\u00a0\u2014 roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.<\/p>\n Beyond investing, you need to make sure you know where you\u2019re spending your money, too.<\/p>\n Start by tracking all your expenses for 30 days, then sort them into two categories: necessities \u2014 like rent, groceries, utilities and health care \u2014 and discretionary spending, such as dining out, entertainment, shopping and hobbies.<\/p>\n This breakdown gives you a clear picture of your spending habits and helps identify areas where you can cut back. But trimming waste isn\u2019t just about skipping lattes or takeout.<\/p>\n Even in essential categories, you may be spending more than you need to. The good news? With a bit of research, those costs can often be significantly reduced.<\/p>\n For instance, car insurance is a major recurring expense, and many people overpay without realizing it. According to Forbes, the average cost of full-coverage car insurance is $2,149 per year (or $179 per month) (8).<\/p>\n However, rates can vary widely depending on your state, driving history and vehicle type, and you could be paying more than necessary.<\/p>\n By using OfficialCarInsurance.com<\/a>, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you\u2019re getting the best deal.<\/p>\n In just two minutes, you could find rates as low as $29 per month<\/a>.<\/p>\n Home insurance is another major expense where smart shoppers can save big.<\/p>\n With OfficialHomeInsurance<\/a>, comparing home insurance rates is fast and hassle-free. Just enter a few basic details and the platform will instantly sort through over 200 insurers to find you the best deals available in your area.<\/p>\n You\u2019ll be able to review all your offers in one place, and quickly find the coverage you need for the lowest possible cost, saving an average of $482 a year<\/a>.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n CNBC (1<\/a>); @BasedMikeLee (2<\/a>), (4<\/a>); @elonmusk (3<\/a>) ; Mike Lee US Senator for Utah (5<\/a>); The Heritage Foundation (6<\/a>); Congressional Budget Office (7<\/a>); Forbes (8<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Chesnot \/ Getty Images: J. Countess \/ Getty Images Moneywise and Yahoo Finance LLC may earn commission or…\n","protected":false},"author":2,"featured_media":243478,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[130778,114,32432,1125,184,85,932,46,3890,122223,4861,130777,130779,14409],"class_list":{"0":"post-243477","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-becky-quick","9":"tag-business","10":"tag-congressional-budget-office","11":"tag-dave-ramsey","12":"tag-economy","13":"tag-il","14":"tag-inflation","15":"tag-israel","16":"tag-jeff-bezos","17":"tag-members-of-congress","18":"tag-real-estate","19":"tag-senator-mike-lee","20":"tag-the-republican-party","21":"tag-warren-buffett"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/243477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=243477"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/243477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/243478"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=243477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=243477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=243477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}