Warren Buffet Announces Retirement

 

Warren Buffet is set to go into retirement at the end of 2025. Buffet for years has been the CEO of  Berkshire Hathaway. Greg Abel is said to be the successor to Warren Buffet's leadership. It was in 1965 that Warren Buffet took a failing textile mill and transformed it into a conglomerate. Warren Buffet owns $160 billion in Berkshire stock and at the moment the largest shareholder of the company's stock. Buffet has not intention of selling those shares. Warren Buffet has been presented to the public as a humanitarian philanthropist. This carefully crafted image from the media and public relations distorts the reality. Warren Buffet represents the obscene wealth and decadence of the upper class elite. Acts of philanthropy by Buffet are nothing more than a marketing measure. As the capitalist system continues to fail the average worker, billionaires are viewed in a more negative light. Warren Buffet  attempted to soften the image of avarice with charity. Philanthropic actions do not challenge the economic system or the billionaires who control government. Warren Buffet's image as humanitarian philanthropic billionaire was created in the 2010s. Speculation over his retirement still persists. Age could be a factor seeing as Warren Buffet is 94 years old. Health and energy become concerns. Another plausible reason is that Buffet seeks retirement before a possible economic crash or recession. The world economy was damaged by Covid-19, corporate price gouging, supply chain issues, and the new set of tariffs being imposed by the United States. Growing public resentment could be making CEOs consider retirement. At the end of 2025 the Warren Buffet era of Berkshire will be over. Buffet's influence is not going away. Warren Buffet donates funds to the Bill and Melinda Gates Foundation and his children run the Susan Thompson Buffet Foundation. Buffet could still be serving Berkshire is some capacity, just not as CEO. 

The World Economy And The Reaction To Tariffs

 

The United States of America has imposed tariffs on multiple countries. This impacted the stock market causing a degree of alarm. The trade war with China never ended. The Biden administration did not make an attempt to reverse Trump's economic policies from 2017. Mexico, Canada, and the European Union countries are going to see an increase in tariffs on their products coming into the United States. The response from France, the United Kingdom, and Germany was to impose tariffs of their own in retaliation. What the Trump administration is trying to do is exploit economically counties of Europe, Africa, Asia, and South America. The funds that come from tariffs those believe will enable the government to increase revenue without federal income tax. The problem is that the United States does not have the manufacturing base. To an extent the country has been deindustrialized from globalization. Inflation is not under control and higher prices on goods causes more challenges for the public. Developing nations are going to be disproportionately effected. Consumers might begin to panic buy various items. The corporate elite are not going to face any hardship. Tariffs can indirectly benefit the wealthiest business owners. Foreign products are going to disadvantaged to favor American goods. Consumers around the world are going to pay more for food, clothing, cars, and other services. The new wave of tariffs causes concerns about a coming economic crisis.    

Indicators of A Recession

 

There are indications that the economy could be heading for recession. High inflation and increasing interest rates are having an impact on economic growth. The stock market should not be an indicator of economic health. This represents a small portion of the population, not  the combined microeconomic and macroeconomic dynamics. Companies are cutting advertising,  cutting back on hiring, or eliminating jobs. This is not a sign of a functional economy. The economy is heading to recession, yet there is denial among economists and politicians. The definition of recession is the decline in economic activity and the reduction of growth. The result of this is unemployment, reduced profits from corporations,  and limited investment. Output comes to a halt due to these obstacles. The indicators have gradually been exposing themselves to the public. The COVID-19 pandemic, the supply chain disruption, and sanctions on Russia have contributed to this economic condition. Attempts to redefine the attributes of a recession are not going to change the economic forecast. This was not some random occurrence. The coming recession was a product of policy. Certain measures must be put in place to prevent another possible global economic meltdown.