Warren Buffett explains the root of his success as acting rationally about capital allocation over the long term. Our elected officials would be wise to take note of this investment advice when building a budget. By focusing on where to allocate our society's capital over the long term, we can make wiser decisions.
Start with education. In the 20th century, America allocated more capital to education than any other country in the world. This investment gave us the most highly educated and innovative workforce in the world, and it explains much of our economic dominance of the past century. But today, in the second decade of the 21st century, we are falling behind. The United States ranks 27th out of the 29 most developed countries in the percentage of college students pursuing degrees in science or engineering, and we rank 48th out of 133 developed and developing countries in the quality of our math and science instruction. Click here to read more . . . .