Warren Buffett thinks that it is utterly foolish not to let the national government keep on growing. In his words, it would be “most asinine” not to raise the debt ceiling: “We’re a growing country, and we’re going to have a growing debt capacity.” What’s the appropriate size of the government? Buffett’s answer: Larger. If the debt limit is not raised, this imposes a harder budget constraint. We all have hard budget constraints. Why shouldn’t the government have one too in this form? Why should it have a highly flexible “limit”? How large would a child’s allowance be if it could take … Continue reading Buffett Keeps His Pro-State Record Intact