The Oracle of Omaha believes that the U.S. economy has indeed improved. There are fundamental reasons to believe the U.S. is past its worst point of this downturn, and is now on the mend.
When asked about the economy’s prospects, Buffett said that “enormous” progress has been made since a year ago, which is a credit, in his view, to what the government did to in the Fall of 2008 to keep the economy from “going over a cliff.” And although, the economy won’t be back the way it was for a while, Buffett believes that the worst is behind us. He was more cautious when asked about unemployment rates, citing that companies must be convinced that demand is there before hiring and that may take some time.
While he doesn’t see a fast recovery for the U.S. consumer, he reminds us that the U.S. system works and things will get far better in the future. “The country works, you don’t need to worry about that.” Thus the long-term U.S. story is intact.