Warren Buffett & Bill Gates on Economy, Deficit, and Presidential Politics

The interviewer asks Buffett and Gates about their continued support for President Obama a year after their previous bullish economic outlook, noting the midterm election results. Buffett affirms the economy has made progress and reiterates his support for the president, while acknowledging both parties now recognize the deficit as a top priority.

Bill Gates discusses the fiscal problem and medical costs driving spending challenges. Warren Buffett praises the Simpson-Bowles commission, noting that 11 out of 18 members voted for it with people crossing party lines. Buffett views it as a very good starting point for deficit reduction, though acknowledges nobody will be happy with the final result.

The discussion focuses on medical costs as the biggest budget conundrum. Bill Gates and Warren Buffett explain that promises made to people regarding future medical expenses cannot be kept under the present medical system. They discuss the difficult trade-offs between raising revenue through taxes, limiting government medical funding, or making massive cuts to other programs.

When asked about partisan bickering, Buffett and Gates express optimism that despite the nastiness in politics, the American system has worked for hundreds of years and will continue to work. They acknowledge the process isn't fun to watch but emphasize the country has done marvelous things with this system over time and solutions will ultimately be found.