In 2011, billionaire investor Warren Buffett appeared on CNBC with a provocative solution to the U.S. deficit crisis. His proposition? A law that would make sitting members of Congress ineligible for re-election if the deficit surpassed 3% of the country’s gross domestic product (GDP).
Buffett’s plan was a simple one—make politicians feel the consequences of unchecked spending. “You 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,” Buffett said, jokingly adding, “A more effective threat would be just to say, ‘If you guys can’t get it done, we’ll get some other guys to get it done.'”
A deficit that keeps growing
Fast forward nearly 14 years, and the U.S. deficit hasn’t just remained; it’s ballooned. In an article published by Yahoo Finance, it was reported that back in 2011, the nation’s debt stood at a hefty $14.3 trillion. By 2025, that figure had surged past $36 trillion, with an annual deficit projection nearing $2.84 trillion.
Despite Buffett’s blunt assessment of the problem, Washington has continued to kick the can down the road. Politicians have avoided taking real action, largely because there are few tangible incentives for them to do so. What would Buffett, a self-proclaimed deficit watchdog, say now in light of these staggering figures?
A new push for efficiency: Trump and Musk’s bold gamble
In an unexpected turn, President Donald Trump, re-elected in 2024, teamed up with billionaire entrepreneur Elon Musk to tackle government inefficiency head-on. Together, they launched the Department of Government Efficiency (DOGE), an ambitious effort to reduce federal spending by up to $2 trillion by Jul 4, 2026.
Musk, known for his hands-on approach to business, is leading the charge, focusing on cutting budgets within agencies like USAID and the Department of Health and Human Services.
While they’ve saved $55 billion in just a few weeks, this is a mere drop in the ocean compared to their massive goal. Critics, particularly among conservatives, are divided—while some praise the aggressive cost-cutting efforts, others question why major entitlement programs, which account for a significant portion of federal spending, have been left untouched.
Will this be enough?
Buffett’s 5-minute plan may never have come to fruition, and the debt problem persists. While the DOGE initiative represents one of the most ambitious attempts yet to address federal spending, the effectiveness of these measures remains uncertain.
As political gridlock continues to stall meaningful change, the question looms large — will these efforts be enough to reverse the course of the nation’s ever-growing debt?
With Buffett’s simple but ruthless idea still on the table, the U.S. continues to face the daunting challenge of solving its deficit crisis.