Dave Ramsey Explains the National Debt
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The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?
Although the market is currently volatile, aren't the current valuations a result of the Federal Reserve's monetary policy and low interest rates? Therefore, my recommendation is that you consult a financial advisor who can give you entry and exit points for the shares that you are interested in.
Agreed, my portfolio is well-matched for every market season yielding 85% from early last year to date. I and my CFP are working on a 7 figure ballpark goal, tho this could take another year. IMO, financial advisors are the most sought-after professionals after doctors.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Monica Shawn Marti is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
These are three of the best questions I've ever heard on this channel. Most people have NO CLUE about this subject.
Including Dave. He either doesn’t know that if you stop borrowing our money supply will slowly evaporate or he does but won’t explain it for whatever reason. Don’t know which is worse.
@@mro2352money supply has increased a lot since COVID. Are you enjoying that inflation?
Canadas's in big trouble because there's too much money supply. Reducing it ain't a bad thing.
@@mro2352He knows how it works cuz he's been in that situation before.
@@KarlDag I agree that there is too much money but if there is deflation the debt driven economy that have depends on more debt in order to run there would be massive transfer of purchasing power to those who physically have cash. All banks and credit unions would go under as they would run out of physical cash and be stuck with assets on their books which are worth less than they put into the loan. There would be liquidity problems and massive numbers of bankruptcies, millions of them, tens of millions. I didn’t want anyone to take stimulus checks from both trump and Biden but if I hadn’t taken it myself I’d be taking the inflation hit anyway.
I know the answers, but still I learned a lot.
Just a reminder: around 75% of the national debt is held by US firms and citizens.
Also, fun fact, Japan is the largest foreign owners by a huge margin (not China).
How the USA owes over $1 TRILLION to countries like the UK, Belgium, Switzerland, Ireland, Canada etc is unfathomable.
@@cs1992 How? It's simple - the treasury issues bonds, the UK, Belgium, etc, buys them
Japan dumped a bunch of their debt when the yen/interest rates destabilized.
i’m not sure what that means
Sources?
$1 trillion a year in servicing the debt, 20% of the $5 trillion the government receive annually. The scary thing is how financially powerless the Government will be the next time we face a major recession
Dave Ramsey is one of the few people on the internet who could talk about the debt crisis in an easy to understand, non-biased way. Basically, in order for this country to truly tackle its debt, there’s going to have to be sacrifice from everyone. It doesn’t matter if you’re Democrats or Republican, young or old, you will feel it in one way or another. No politician has the ability to run on that message because they would never get elected.
He’s biased
@@letsgotomarsman He does lean a certain way like most of us do. But he did explain this in a very unbiased way. Let's face it, both parties suck when it comes to finances. Which is why America is in this kind of debt.
That's why we need to support Vivik Ramaswamy
@@Linds2476 Ha, ha, ha. That's funny.
He is definitely not non-biased. There’s another way to decrease the deficit, which is to increase taxes. But at no point did Ramsey ever even consider that possibility.
I knew Dave Ramsey was starting to influence me when I check my credit score and it tanked 50 points and I just smiled 😎
Based. Let us know when its "indeterminable" 🤣🤣
After serving in the military and being a federal employee I can see why the country is in debt.
Why?
First, thanks for your sacrifice. Second, yuu-uup! That'll give you a bird's eye view of government waste.
The amount of simple goofing off and wasting money is huge. $600 toilet sets is a common example. @@ruthturkington1736
@@ruthturkington1736 contractors, mismanagement, grift, and the way the system is set up. I've worked for the federal government twice, once as a civilian employee for the military, and the second for a federal agency as a contractor.
@@ruthturkington1736lazy overpaid federal employees
Phenomenal explanation of the US debt! The best I have heard.
What surprises me is that I don't see government intentions of paying the national debt, they just keep lifting the debt ceiling
My thoughts exactly. No matter who is the new president, not once has the national debt gone down after any presidential term or even one calendar year since this mess has made headlines. It really should be our number one concern as a nation.
@@douglassmith9445 in a poor country is normal that the government not giving priority to the national debt, however this is not the case
@@douglassmith9445 That is not true. President Clinton was elected President in the 1992 election. One of the things he did was increase taxes on the wealthy. The Republicans said, oh no, this will destroy the economy, no way this will work. Guess what. Taxes were increased on the wealthy and jobs were created because the dollar value came down, so our manufacturing companies were able to compete better and increased sales.
The budget came close to balanced in years, 1999 to 2000.
But then George W. Bush was elected President and even though he was going to start 2 wars, actually cut taxes. So all the Government spending for wars and then cut taxes? That is incredible. Then they made those tax cuts permanent, and then when trump got in they cut taxes on the wealthy again.
I completely blame the Republicans for the Federal Government Deficit.
Because the debt is make belief. If every single person decides they don’t want to participate anymore it’s over. All we need is will power and the willingness to go back to the Middle Ages temporarily.
It surprises you because you still believe that the people we "vote" for are actually in control.
1992 election Ross Perot said that the national debt was the biggest threat to the security of the US so I voted for him. Now it's 10X what it was in 1992.
Me too, and his charts are turning out to be correct
He was very right
"Read my lips. NO NEW TAXES!" Followed by the largest increase in taxes in the U.S. up to that point. THAT's how Clinton-the Pedophile got into office. People should have voted for Perot, but instead they fell for suave predator.
Ur number is incorrect. Nominally, current debt is a out 100x the level of 1992... and debt to gdp level is about 3 times than it was 1992
Excellent questions and excellent answers and discussions!
Great question. I learned a lot. Thank you!
I axtually really appreciate both this man's questions and Daves answer. He gave a very honest, unbias answer that avoided taking any political stances
The problem with any politician is that they're unlikely to make any positive long term changes unless the effects from that change can be felt during their term. If you proposed a plan that would hurt a bit for four years but have massive positive effect in the fifth, they probably wont do it, because they dont want to risk their opponent getting the praise.
Whatever lines their pocket book.
They only act in the interest of their corporate masters
Politicians I think get unfairly blamed for this phenomenon. The reason politicians are short sighted is because voters are short sighted. Politicians at the end of the day tend to cater to what will win them elections. I don't mean this to suggest they shouldn't be blamed; they should, but people conveniently leave out the part where voters are either uninformed or flat out when it comes down to it don't care about long term ramifications as much as they should, and they vote accordingly. The American electorate should take a much longer look in the mirror before trashing politicians at large for everything.
@@heroflyingI so completely agree with you…I wish a million people could read your brief comments. Democracy. We get what we deserve.
This is precisely why this notion of 4-8 year-long presidential stints is absolutely ridiculous. I understand the motive behind it originally, which is to prevent any ruling tyranny from forming, but in practice it only reinforces short term gains reinforced by the media machine and hefty sloganeering for the masses.
Think about it. People half-ass their jobs for about 3-5 years at a time before jumping on to another, leaving those coming after them with the aftermath of any poor decisions made prior to leaving.
Do you think this doesn't occur in the "oval office" ?
This is the first time I could totally understand this topic & it was clearly explained. Thank you!
This is the best explanation of the national debt, and why it will likely never be fixed.
What makes it worse is this only counts normal debt. If you look at unfunded obligations, the national debt is over 100 Trillion.
Actually it is $211 Trillion in unfunded liabilities.
Very interesting, could expand on that please ? @@FreedomFighter485
But if wallstreet derivatives fraud gets added then we’re at a staggering 1 quadrillion
@@FreedomFighter485 What is most of that related to? Little of everything?
Once debt goes past 120 percent of gdp a country cannot recover without sacrificing the currency or going into extreme austerity and it might be too late for that. Bye, bye USD.
Fantastic Questions with Perfect Answers!
That was a great answer! thank you so much!
I read back when our national debt was $18 trillion it would take 2,000 years to pay off paying $24 million a day if there was no interest on it. So I can’t imagine what those numbers are now. Thousands of percents increased.
That kind of comparison is entirely irrelevant. The GDP of the country is approximately $27 trillion. The Federal National debt is approximately 126% of GDP. That's the important statistic. Some arbitrary millions a day, or 2,000 year time horizons are irrelevant and just emotional appeals.
You would just double 24 million since debt has about double since then. So $48M a day for 2000 years. But that doesn’t really mean anything
I live in Connecticut. We have a yearly motor vehicle tax to "maintain roads and bridges". Every new paving project needs federal funding because local and state are broke. We need Dave Ramsey for Governor up here
to be honest with you, Dave would not solve it either. On top of the theft and waste that happens with the funds not being appropriated for what the taxes were intended for, there is simply not enough revenue to actually cover the real expenses associated with road construction. It is one of the most expensive things that we have to pay for and it is never enough. Why does it cost millions of dollars for a mile of road in the US when other developed countries can do it for a fraction of the costs?
Connecticut votes Democrat. They reap what they sow.
@@johnwilburn I'm talking more about local municipalities(towns). CT towns have a even distribution of D and R mayors. Both spend the same them need to beg the Fed for grants to pay for road projects. They both suck
Ugghhh CT roads are I swear the worst in the country and I lived in Michigan and CT. Yet that motor vehicle tax ain’t cheap and they still hound you for years after you leave even if your plates aren’t registered.
But yeah they just beg for money, tax people to death and squander it. Like I was hearing my coworkers say that their property tax was over 10-20 k for not the greatest houses. My tax on my 2014 ford with over 100 k miles was $700. Yet the roads have potholes for miles and I have a nice scar on my knee for falling in one of their horribly maintained sidewalks. Stupid. Glad I left.
Great question, great answer!!!
Good discussion.
Great contributions by George during this call.
This was a great podcast!!! 👏
very accurate answer. No one wants to say no.
The more you give people the more they ask for and expect.
Explained very well. Smart guy
I'm glad they actually had this caller. I have been asked many times this exact question while being in conversations. The avg person seems to not know this information how the US debt works and who the government is in debt to. It blows some peoples minds to know you can buy the T bills and have the US government have to pay you interest instead of just having money in a cd or hysa
I'm surprised people don't know that either. It was taught in my high school economics class.
except you may not get the principal back... EVER!!!!
@@DaveDepilot-KFRGwhat? You always get your principal back and then some, unless the gov fails. It’s as near risk free as it gets as long as the gov exists.
If the yield curve wasn't inverted most people would not want TBills
T Bills are generally not a good investment for the average Joe
Just curious why would T-Bills be better than CDs?
That was a great question
So glad someone could think to ask this. Cause who ever knows what is happening.
I have seen to many broke people argue over this sort of thing.
I’m apolitical. Prefer to know more about things I can control like my own personal finances,debt free lifestyle,early retirement,etc..
The real problem is politicians always craft bills that have things we need to pass, with stuff they want to pass tacked on. Like they put out a bill to fix roads or fund schools, and then put a million dollar pay raise for themself on it. It might slow down the process, but we need each bill to only include one thing at a time. No more free rides for garbage taxes and laws on other bills.
The M2 money supply was under 5 trillion in 2000. Today its over 20. And they expect us to believe there isn't much inflation?
Just do precovid😂
Thank you very much Dave for the Video, Most people can deal with debit (people who have backup for their debt)while most people can't deal with it. The country is built on debt for herself and citizens, making its citizens' essential needs expensive and can only be afforded by debt (For example, Medical and College). This is why every citizen must go into investment as a support income, all to be debt-free
The stock, bond and real estate is a way to protect against inflation. Particularly in the midst of a recession, investors must understand where and how to allocate funds to protect against inflation and still make profits
In my opinion, the impact of the rise or fall of the US dollar on the market is multifaceted, but learning how to grow your money has never been easier than now that you can passively explore and experience a truly diverse market by using a Fin. advisor. director portfolio.
@@CalvinScott-hc3dw Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative strategy to effectively utilize them.
This is an amazing discussion. Sophisticated, leveraged investors have gotten a taste of Linda Sue Baier's true principles. Their Financial Advice program is not simple and makes you a good money manager. She can make great things happen in your portfolio.
I was in the DOD and there can be cuts made everywhere! There needs/must be an audit on government spending!!!!!!!!!!!!!!!!!
A lot of this debt is owed to the Fed. The treasury issues t-bills, bought by member banks (cartel) at the discount rate and then turn around and sell those to the fed who purchases them with money created out of thin air. Not only is the population taxed for interest in the bill but they also get hit with the inflation when the fed creates the money to buy it in the first place, expanding the money supply. Look at your printed money, it’s a “Federal Reserve Note,” essentially a Note is an IOU. The bankers make out in this scheme and it’s all a scam.
Thank you, I'm glad you said it so I don't have to.
The creature from Jekyll Island.
It's basically counterfeiting except only the privileged few(the 1% mainly) benefit from it. If we all were able to counterfeit/print $$, the entire system would then definitely collapse. Enough of the masses have no idea how badly they are being screwed over
Not even 1/7th of the debt is held by the Fed.
Banks are not purchasing treasuries using the discount rate, there is over $3 trillion in reserves currently, and they're not going to use the more expensive discount window when they have reserves hanging around. Then again, they mostly don't do it because ... well, just look at Silicon Valley Bank for why.
The Fed, during FOMC operations, purchase treasuries from the secondary market at the market rate. The people who are selling their treasuries to the Fed are not "profiting" off of it any more than selling to anyone else.
Your whole post just screams "I read conspiracy theories and don't know how our monetary system works".
@@Meton2526 Pew research center says they own 1/5 of the debt and are the largest single debt holder. To downplay the significance of the FED in our nation's reckless spending is either naive or nefarious. Your post reads like you suckle from the tit of the mommy media who tells you what to think, who to hate, and to eat your vegetables. So I'll give you the benefit of the doubt and say you're naive.
The one thing that not many people talk about (in regards to this topic) is that a lot of “power house” countries are ALSO IN DEBT. The entire situation is a mess
As a lifelong Kentuckian, I say- Let 'em TRY to repo Kentucky!
Oh please. is Kentucky even still a state?
A better state than YOURS!@@kbanghart
@@jasonrodgers9063 lol I was joking.. but seriously, nah. Typical red state crap.
@@kbanghart if China calls the debt and we can't pay, I do not mind giving them Kentucky lol
@@andidede3653 LMAO
So tired of the irresponsible behavior of the government.
The government is just a reflection of the people that voted them in. If a politician ran on the platform that they'd cut expenses and reduce the debt they'd never get voted in and their party would probably be rediculed into oblivion because we all want our subsidies and public aide.
You mean just like the average citizen?
Don't 50% have no emergency fund
I like Dave Ramsey, he knows a lot about financial management, but I'm not sure that this was a great explanation about government spending at a macro-level.
There are PhDs who spent many hours with fancy theories to justify endless debt. i.e. Modern Monetary Theory (MMT) At the end of the day it's still a mess with a fancy name.
The US Federal government's extravagant spending is no wonder why many Americans also live beyond their means.
That's nonsense. That's like saying Cubans kill people due to under Fidel Castro regime.
Also the fact that no one wants to pay higher taxes......
bump for the algo !!! wish this would happen in the USA
Such simple truth.
Debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
From what I've read, it seems to be a mix of factors. High government debt, corporate debt, and even personal debt are contributing to the instability. It's like a perfect storm. You should contact an expert to help you allocate stocks in your portfolio
I talk a lot about how important it is to have an advisor.This kept me afloat and increased my $450,000 portfolio by 48% in just 4 months.They have strategies that are tailored to your long-term goals and your desired financial situation.
I have talked a lot about how important it is to have an advisor.This kept me afloat and increased my $450k portfolio by 48% in just 4 months.They have strategies that are tailored to your long-term goals and your desired financial situation.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
That’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
"I like saying 'no.' It lowers their enthusiasm." - Ron Swanson
Thanks
Treasury bills don't pay interest. Instead, they are auctioned off using a Dutch auction system. The debt notes are sold at a discount until all notes are sold. Thus, when they mature, the government promises to pay the bearer the amount that is written on the note.
It seems like Congress is always willing to consider cuts to social programs. There are many other programs where cuts could be made. Too many "agencies" needing money. And 10% of the budget goes to paying interest on debt.
There really aren't. If you're actually going to balance the budget, we could closed every department but entitlement programs and we'd still be in deficit. That's the problem. No one wants to change Medicare or social security or other popular programs
Argentina had this same issue. When inflation reached %50 monthly the people woke up and elected president Milei who was warning us about it last years. Now majority are saying NO. We are suffering but with HOPE that the NO will fix our economic health and be a great country again some day.
I heard something along the lines of debt on a national scale is not the same as debt on the personal level. It operates wildly differently - where in some cases a national debt is *beneficial* - something I haven't heard of. I wonder how that correlates.
There are several countries who are in debt to the US.
This is sooo crazy that all these countries, US included, owe each other a ton of money.
Thank you Dave for recognizing our military. As a veteran and have lots of family and friends that are veterans or still in the military, i see too much chaos. One reason why i got out at 11 years. Miss the commandeering and my job.
Some folks think that those who retire are RICH. (Siblings and a parent, especially.)
In the European Union countries are obliged to keep the budget deficit under 3% of their GDP. Most countries so this. Assuming a reasonable economic growth, this allows you to keep the total deficit as percentage of GDP relatively stable. Actually in my country (the Netherlands) they managed to cut the total debt slightly in the few years after the debt crisis and prior to COVID. Mostly because the interest rate was so low that the government could borrow at a negative interest rate (sounds crazy I know...)
Really, the situation has evolved to its current point because so many false promises have been made for so long. The youngest generation today sees that they will be burdened to pay for benefits for the previous generations, which they themselves will never see returned, so they refuse.
He touches on the basics, but It's more complex than that. Like all debt, there is good and bad debt. When there is a recession, the government must take on debt to stimulate the economy because they won't get as much revenue. It also does this on a regular basis in order to grow the economy. Taking on debt is completely fine if it generates more revenue through economic expansion than the interest costs. If they borrow 100 and they raise revenue by 5 while the interest is 3, then it is good debt. That is why the debt to gdp ratio is more important than the actual dollar amount of the debt.
Though China owns a large amount of U.S. debt, it isn't the United States's largest creditor. The greatest amount of U.S. debt is owned by the U.S. government, while the largest foreign creditor is Japan.
China owns around 2.6% of U.S. debt, which it buys because the Chinese yuan is pegged to the dollar. It would be impossible for China to call in all its U.S. debt at once, given the different maturity dates of the U.S. securities that China owns.
But propaganda differs
I love Dave and he has helped me stay out of trouble. But if you play by your moral rules in a broken system you are not gonna win. I learned that when i didnt get that business loan when covid.
So, abandon morality?
@@kbanghart if not paying your debts was punished with jail time or death then society would look at debt as morally wrong. But when debt and bankruptcy is rewarded by the system then Dave’s morals of not using debt to your advantage is innefective. Just like when you speak truth in a corrupt government. Don’t believe me? Travel outside of USA.
@@cubanito48 lol
Texas has money in the bank called the rainy day fund. How this happens is we have line item veto. This means if our governor sees a proposed bill that has wasteful expense called pork belly, he can strike the one item from a package of ideas from becoming law. Texas has the 6th largest economic budget of the entire world and operates with fisual responsibility.
At this point, I think the only way we can stop spending is if our debt interest payment goes over our tax revenue, and we collapse. It will get incredibly dirty and horrific, but thats what happens in the prisoner's dilemma.
These are not stupid questions. I had the same ones!
Ten years ago interest payments on the national debt were 6% of the budget. It is growing so rapidly that, at current projections from the CBO, in ten years interest payments on the national debt will be 26% of the budget. This is not sustainable!🤦🏻♂️
The house of cards has to fall someday lol
It’s like Caesar in Planet of The Apes when he screamed, NO!!! And the whole room went quiet. You need to say it sometimes.
To answer the caller’s questions:
1. Two thirds is owed to the American public in the form of bonds. Less than one third is owned to foreign governments. The rest is intragovernmental debt, meaning government agencies owe each other.
2. How did we get into this hole? Overspending and tax cuts that aren’t paid for. While tax cuts can lead to higher revenues, it’s often short term and there’s a diminishing return on how much tax cuts can boost things. Despite what Dave says about Art Laffer, the Reagan tax cuts and increased spending drove up the debt went from $1 trillion when he took office to $3 trillion eight years later. Reagan also made up a lot of the revenue lost to tax rate cuts by increasing a lot of fees collected across government, so just because income rates when down doesn’t mean they were really weren’t making up the lost revenue elsewhere.
3. Can the debt be paid off? Very likely no, but that’s not a bad thing. The country holding debt shows we can pay it off and are good for our word. The debt needs to be reduced, but not eliminated. Andrew Jackson paid off the debt and the result was a massive depression that fell on Martin van Buren just after Jackson left office. Lower debt is good, no debt would likely have bad side effects.
"No debt would likely have bad side effects"....just flat wrong.
@@jdogg0075 you have a child's understanding of macroeconomics
To your 3rd point... what amount of debt is "good"? How much is too much? Your explanation sounds like the Federal Reserve's 2% inflation target.
@@jdogg0075If the US debt was actually paid at all the word would go into depression. As the debt is paid, the currency supply would shrink and devastate the economy and people.
@@unclebenny I wouldn't say any specific amount is good, but keeping servicing payments as low as possible is always better. We've generally kept it below 5% of the budget, but since 2020 that number has gone up and we could be staring down 10% soon enough.
How does the federal reserve play into this debt?
It's shocking how little Dave knows about the "Debt".
$34 Trillion Debt.
$1.1 Trillion Japan
$0.8 Trillion China
$0.7 Trillion UK
$1.9 Trillion all other nations.
$29.5 Trillion - American Institutional investors, also known as "Insurance".
Every month your insurance payment doesn't just go and sit in a bank. It gets invested in the safest, mediocre-performing investment there is, Treasury Bonds.
Dave does very basic things. He does not understand money mechanics
No American does. That's part of the problem. @@Dan16673
The debt is not all T Bills
It's also Notes,Bonds, TIPS, Savings bonds etc..
Everything he said is true… but I will point out typically for nations once you pass debt to gdp of 90% it never ever gets paid down… and more stimulus also doesn’t have the same positive effect as it did when it was say 40-60debt to gdp ratio
Was expecting a rant about entitlement spending, unemployment insurance, or health care.
Was pleased to hear farm subsidizes, military spending and foreign aid mentioned instead.
Honestly, we spend a lot of money on a lot of things. 😅 The message is perfect - no one wants to say no
Dave misinterpreted military spending. Don’t you wish our service members got the money? Military waste money on toys that may never be functional or ever used in combat. That’s were military spending goes. Dave does make an excellent point about farming and the subsidies they thrive off of. Especially corporate farming.
Yes. This was a surprisingly unbiased conversation by Ramsey. He didn't blame "socialist democrats." He said both parties are to blame. Farmers in conservative states love their subsidies, and people in blue states also love their federal government help. And you are right about the military. The money doesn't go to soldiers. We have airplanes that we have never used an they cost millions per unit and they never use them. The only ones getting rich are the military equipment companies that spend a lot of money donating to politicians.
We have a military drone. It costs several million each. The Turks sell a better drone which proved itself in Ukraine recently that sells for a few hundred thousand. The US military spends too much foolishly.
70 Nuclear Submarines?????? Really?
If you take the U.S. Naval Tonnage, it is larger than the next 18 navies COMBINED.
The US spends more on defense than the next 20 countries combined. That's more than Russia, China, Taiwan, Japan, Germany, Turkey, Nigeria, Israel, Brazil and others combined.
@@aolvaar8792
Rethink farming, because whether corporate or small local organic ag, very few are wealthy. Take away those subsidies and you'll have very little on your plate but, if you do, it'll likely be much more expensive and/or highly processed leading to negative health outcomes.
As long as you are outpacing the currency debasement you are doing OK. National debt doesn't matter as long as GDP is in line with it
Both sides of congress usually must agree to add to the debt. I as a "people" am subject to AMT (alternative minimum tax) why aren't companies (who are people too, so I'm told) also subjected to AMT. Or deal with the silliness that Warren Buffet pays less percentage in taxes than his secretary. When we've killed the debt, we can talk about cuts.
Allowing people who recieve sustenance from government to vote ensures that we will financially fail as a country. The time to failure is the only unknown.
People always talk crap about back in the day when you used to have to own land to vote, but as I've gotten older its started to make more sense.
@@feliciavale4279 it is important to note that the Constitution does not disallow restricting the right to vote for all reasons.
@@feliciavale4279 Same with women not voting, honestly. Historically women were a little busy if they were married and had kids and a small farm to take care of. Women are awesome creatures, their nurturing and empathetic behavior is so needed in society. However, it's horrible when it's mixed with the laws ruling a nation. It's no different than a man trying to use his nipples to feed a child---it just isn't made for that. I would have loved to help my wife years back when she was breastfeeding, but I can't. Just the same, a woman's nature is to give, yet we can't give everyone everything or it ruins the economy to steal from others to give to others(or print it). I'm not saying men in politics aren't part of the problem too, they sure as hell are... but this new "women shouldn't vote" is coming back and I find it ironic.
@@feliciavale4279I guess you have no idea how much land China and other foreign nationals own in the US, nor how corporations are paying cash for single family homes and turning them into rentals. And that's not to mention Americans that live in apartments because they've been priced out of there communities. Take out the military budget and we'd have about double the money we have now. It's not subsidies to farmers and those pushed out of jobs because of robots and AI, it's banks, corporations, and the military.
@@JS-mh1fhWelfare and healthcare are way more than the military budget. And, you missed the point of saying only people who own land should be allowed to vote.
Read Richard Wolff on the national debt.
I can just see it, that morning talk that Dave gives his wife about how they all arent going on vacation this year because they were too broke 😂
we can print
truth!
Social security is the largest holder of US debt. You and your employer pay 15.3% to fund it and then its immediately leveraged if its not paying out to retirees. This is why the fund is set to not be able to make full payments within 10 years.
If every penny was there in a box in CASH,
$2.9T.
It would still run out.
~47 million SSA retirees X ~$1900/mo = ~$1.07 Trillion/yr
@@aolvaar8792 yup
Close, social is 12.4%. your points still stand though.
@sebastianlucas704 I'm including Medicare in there because it's there anyways. Regardless, big scam basically lol
The debt can never be paid off. Because every dollar printed is at interest, but the interest doesn't exist. They have to keep printing more
2:26 we went into debt because we owe interest on our own currency supply. The budget wont be balance until the dollar is gone.
As long as you maintain control over the printing of your own currency, it's not so bad.
The 'debt' can be printed away, but causes inflation.
The problem is the ineffective and inefficient public sector. Tax takes are wasted year in, year out, on crap workers doing a crappy job.
Yeah and at some point other countries will stop accepting it as being worth anything. Which makes it hard to buy oil, among other things.
In federal government is only supposed to concern itself w/ matters prescribed in the Constitution. Everything else is the state government's job. The reason its not working is not bc of our founding principles, but it's bc we have deviated from them....
Dave, you know full well that income/revenue is just as important to balancing a budget as controlling spending. Reagan, Bush, and Trump have collectively given huge tax cuts to the wealthy and big corporations on the premise that this money would be re-invested in the economy and all this wealth would trickle down. Instead companies still build plants in China and then do stock buybacks. Reaganomics has been a huge failed experiment. Back when corporations paid some semblance of a fair tax, we did great things. We built the Interstate highway system and put a man on the moon. Yes we need to spend wisely, but we can’t just keep giving tax-breaks to the rich and then try to balance the budget on the backs of the poor either. Please do an episode on what benefits the nation has seen from these tax cuts. Thanks.
Hard to quantify One Trillion. Time is easier to quantify. For example, 1 million seconds is approximately 11.5 days, 1 trillion seconds is approximately 31,500 years! Remember, that is just 1 trillion. Multiply that by 33.
No discussion of increasing income to deal with the debt.
Money to third party contracts?
6:32 Normal people say “How much down and how much per month?” Weird people say “No.”
It's not the farmer that will be affected by cutting subsidies, it would mean consumers paying the true cost for the product. I.e. a $5 hamburger actually costs around $13, the taxpayers foot the bill for the difference. Not that $5 hamburgers exist anymore.
Just wrapping up reading Economics In One Lesson by Henry Hazlitt and he reiterated, among other points, that government spending should not vary in any meaningful way from how household or company budgets are run. The fact that we let DC continually get away with it is to our collective shame. Factoring into this is that everybody wants to cut spending that doesn't affect them, nobody has the stones to cut spending that does affect them.
The Federal Reserve can technically buy a lot of the Treasuries outstanding through open market operation. With money out of thin air, just key strokes on a computer. In this case, the interest paid to the Fed just goes back to the Treasury. So is the national debt really a debt when the Fed can just print the cash out of thin air?
No country or civilization in the history of the world has ever survived the kind of debt that we are carrying. I hope I’m wrong be I think we are at the end.
Same reason we have inflation. Nobody can say no...
Correction the debt is over 34 trillion.
1 trillion more every 3 months
I’m just wondering if this debt will ever mean anything. The stock market keeps surging away.
If you eliminate the tax loopholes for the rich corporations (I'm not even saying raise the tax, just make the actually pay the current rates), we will have no deficit and will be able to start lowering the debt
The rich pay 75-80% of all combined taxes in the United States.
Usa: dave im 20 trillion in debt
Dave: okay whats your income
GDP debt ratio is over 120%
@@AndrewKoff it was a joke andrew
There are several issue with government spending and debt.
1. We don't trust our politicians - and for good reason.
2. We don't have a clue where the money went. Every so often, someone will dig into one of those 6,000 page spending bills and parse out a few million here, a few million there, and we just shake our head and go, "see". Then we turn on the TV and watch the latest ball game.
3. We don't have a clue how much of a "tax burden" the average American has. Many Americans, when you ask them how much they paid in taxes last year will reply "I didn't pay, I got a refund". Then we have the "tax the evil corporations" crowd, who can't seem to grasp the concept of every dollar a corporation pays, usually gets multiplied and passed on to the consumer. You're paying the tax, it's just rolled into the price of that loaf of bread.
4. The way the government accounts for their expenditures. For example, would you say the government issuing bonds to build a bridge that will last for fifty years a good thing or bad thing? Problem is, it is all accounted for in current year expenditures and those bonds are dumped into the pot with all the other spending. If the government said "We're going to sell $1 billion in bonds and give it to Moronia, people would be up in arms. No, what the politicians do is say "If we don't raise the debt ceiling, then senior citizens will not get their Social Security payments."
We've all seen the analogies that lop off about ten zeros off the debt and revenues amounts and then equate them to a household budget. If you can balance a checkbook, you realize that we cannot continue down this path.
Nearly 70% of the $6.1T annual budget is going to “non-discretionary” programs that are automatically funded without congressional approval (aka social security, medicare, medicaid, and welfare). You could defund the entire $850B military and the US would still be running an annual deficit at current revenue levels, which highlights the embarrassing fact that the discretionary programs that congress fights over every year is a pittance compared to what is actually spent. ZERO politicians would ever suggest cutting entitlements to balance the budget because as Dave said that would be the end of them instantly. The honest answer is that if people were serious about balancing the budget, it would require major cuts to entitlements, the economy would probably suffer, and life would kind of suck, which isn’t to say we shouldn’t be holding our gov’t more vigilant and accountable for this mess. It would make far more sense to require congress to only borrow more money when they stimulate GDP enough to justify the increase in debt, which is similar to needing a certain income to qualify for more credit. But only if Americans can get used to stop sucking on the gov’t teet.
The state of TN charge state taxes maybe that’ll fix the road
I have watched enough Dave Ramsey to know that when he pushes that button on his desk, he just "hangs up" on the caller. I HOPE that they have a system in place that tells them as much. lol