Warren Buffett Warns U.S. Deficit Could Spiral Out of Control by 2027

Warren Buffett sounded the alarm on America’s worsening fiscal health during what may be his final Berkshire Hathaway shareholders meeting, cautioning that the country is heading toward a financial cliff if spending habits remain unchecked.

The U.S. has already racked up a $1.31 trillion deficit in the current fiscal year—an increase of $242 billion from the same period last year—according to the Treasury.

Buffett believes that unless the growing gap between government income and expenses is brought under control, the situation could spiral by 2027.

He warned that while the U.S. has so far avoided a full-blown crisis, continued overspending could eventually push the system past the point of recovery.

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Comparing today’s environment to previous close calls, he emphasized that inflation, while currently restrained, could accelerate rapidly if the fiscal imbalance worsens.

Buffett said the U.S. is running with a deficit closer to 7% when around 3% might be sustainable. Beyond that, he argued, the risk of losing control grows. Fixing the imbalance, he added, is an unenviable task—one that Congress has shown little appetite for taking on.

Alexander Stefanov