Warren Buffett reveals the REAL reason for America’s widening wealth gap as the famed investor issues chilling warning

While politicians, economists and activists worry about income inequality in America, billionaire CEO Warren Buffett has offered the real reason why he believes the wealth gap has increased.

The Berkshire Hathaway boss has a net worth of $135 billion and is one of the most successful businessmen and investors of all time.

He has often portrayed himself as a friendlier CEO than many, and has openly stated through his company that he would gladly pay more in federal income taxes. Buffett has even suggested that if companies like his actually paid their fair share, no American would ever pay “a penny in federal taxes.”

According to the CensusIn 2022, income inequality declined for the first time since 2007, but the gap between the rich and the poor remains wide and homelessness is rising in cities across the country.

Buffett, however, is adamant that rising inequality is not due to the rich getting richer. He offers a different argument, and a chilling warning for those who are not suited to the current American economy.

Buffett believes that these numbers are simply the result of the United States’ economic system.

“This growing gap is an inevitable consequence of an advanced market economy,” he wrote in one Wall Street Journal that has surfaced again as Americans face rising inflation.

He also refused to accept the view of far-left progressives that the wealthy are responsible for this divide.

‘There is no conspiracy behind this depressing fact: the poor are certainly not poor because the rich are rich. The rich don’t deserve it either. “Most of them have contributed brilliant innovations or managerial expertise to America’s well-being,” he said.

He argues that the market has recently rewarded “people with specialized talents” rather than a broad labor market.

Those who can deliver what the market needs are doing so even more than before, while those who cannot are left behind.

“A few hundred years ago it was an agricultural economy,” he said.

“Very hard, you know, to get twenty times the next guy’s wealth because you were a little better farmer. But if you master certain skills better now, you can become incredibly rich at a very young age… You can capitalize [the] value of an idea. And so wealth moves tremendously, even on an anticipatory basis.’

Buffett has warned workers that there is now a “mismatch” between what important jobs require and what the average American needs.

“It’s simply a consequence of an economic machine that continually demands more higher-order talent, while the need for resource-like tasks diminishes.”

He says these changes will leave “a lot of people” behind, Yahoo Finance.

Buffett says the solution is to ensure that good jobs are well compensated and that leaders in Washington do nothing to change the system.

“First, in our wealthy society, we should want everyone who is willing to work to have an income that provides him or her with a decent lifestyle,” he said.

“Second, any plan to do so must not disrupt our market system, the key element necessary for growth and prosperity,” he wrote.

Ultimately, he thinks the best advice he can give is to “bet on America.”

“They should be willing to bet on America…They should keep buying and buying and buying a little bit of America as they go along. And in 30 or 40 years they will have a lot of money,” he told PBS.

Buffett said that the key to his success lies in his ability to prioritize and use his time wisely. That is the background to this seemingly controversial quote.

But being able to say “no” to people and opportunities that don’t directly benefit personal or professional growth is the best way to make use of limited time.

But now that homelessness has risen so dramatically under Joe Biden, the gap between rich and poor is likely to widen even further.

New data shows that the homeless population in the United States has reached an all-time high under the Biden administration, after steadily declining for 17 years.

On one night in 2023, 653,104 people experienced homelessness, a 12 percent increase from the previous year, according to the U.S. Department of Housing and Urban Development’s Annual Homelessness Assessment Report.

That’s the highest number of residents ever since the count began at a specific point in 2007 — though the count was skipped in 2020-21 due to the COVID-19 pandemic.

The homeless epidemic has reached record levels, fueled by crime, unemployment, a drug crisis and skyrocketing rents, leaving hundreds of thousands of Americans living on the streets.

The spike has occurred since Biden took office as Americans have also dealt with crippling inflation and a housing market that leaves many feeling squeezed.

The Biden administration has announced several programs to help slow the growth of the homeless population. Two weeks ago, the administration announced plans to help eight states and Washington DC “unlock critical resources to reduce homelessness through health-related social needs, such as housing-related services.”

That includes plans to offer rentals under a new $1.5 billion Medicaid pilot program.

So far, however, Biden’s programs have done little to stem the rapid growth of homelessness in America.