Elon Musk Backs Buffett’s 5-Minute Fix for Debt Bigger Than the US Economy

• Elon Musk backed Warren Buffett’s plan to bar Congress from reelection if the deficit tops 3% of GDP
• The US national debt hit $38.9 trillion, now bigger than the entire economy for the first time since WW2
• Ray Dalio, Scott Bessent, and CRFB all back the plan, but Congress must vote to eliminate itself

The US national debt is approaching $39 trillion. Amidst this, concern around federal spending is starting to cut across political and business circles. Elon Musk recently backed a proposal from Warren Buffett that has been circulating again online as debt levels continue to rise. Buffett’s idea was straightforward. It is to make members of Congress ineligible for reelection anytime the federal deficit exceeds 3% of GDP.

Musk responded to the clip with a short post on X saying, “This is the way.” It is bringing renewed attention to the debate around the US debt crisis and long-term deficit spending.

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How Buffett’s Plan to Make Congress Ineligible Would Fix the US Debt Crisis

According to the US Treasury, total federal debt has reached roughly $38.9 trillion, or around 124% of GDP. Public debt has now exceeded the size of the US economy for the first time since World War II.

The pace of borrowing has also accelerated. Data from the Joint Economic Committee shows the debt has been increasing by more than $7 billion per day. This has been the case over the past year. Interest payments are becoming a growing concern as well. The Congressional Budget Office estimates the government is now spending more than $22 billion each week servicing debt.

This is one of the reasons why Buffett’s old comments are getting attention yet again.

Buffett’s Proposal Sheds Focus on Incentives

During a 2011 CNBC interview, Buffett said he could solve the deficit problem in “five minutes.” He intends to do so by passing a law stating that if the deficit rises above 3% of GDP, all sitting members of Congress would lose eligibility for reelection.

Warren Buffett’s deficit proposal avoids detailed debates over taxes or spending cuts. But instead focuses on political accountability. Supporters argue lawmakers would move faster on fiscal policy if their own positions depended on reducing deficits.

Elon Musk’s endorsement pushed the idea back into public discussion, though Buffett is not the only high-profile figure warning about rising debt levels.

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Economists Warn About Long-Term Risks

Bridgewater founder Ray Dalio has repeatedly warned that growing debt and higher interest costs could create long-term pressure on the US economy. The Committee for a Responsible Federal Budget has also cautioned that by 2031, average interest rates on federal debt could exceed economic growth rates.

The group said that once borrowing costs rise above economic growth for a sustained period, debt can continue increasing. This is even without major new spending programs.

Amidst this, some lawmakers have already introduced bipartisan proposals aimed at reducing the deficit to 3% of GDP. This is even though there has been little support for Buffett’s idea of restricting reelection.

The biggest obstacle to the Congress deficit plan is that lawmakers would likely need to approve it themselves. Legal experts have also noted that such a measure could require a constitutional amendment because it changes eligibility rules for federal office.

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