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The nation's debt now exceeds $13 trillion. Yes, $13 trillion. You know what you could do with just $1 trillion? You could pay the rent for every renter in the U.S. for three years or pay the monthly payments on all U.S. mortgages for 14 months. A $1 trillion stack of $1 bills would wrap around the equator 2.72 times!
And $1 trillion is just a fraction of the money the U.S. owes. Since Dave can't stand debt, including the national debt, he had some tough things to say as he discussed the issue recently on The Dave Ramsey Show. Listen to the clip here.
What Is National Debt?
The government uses debt to cover its expenses when it spends more than it makes from taxes or other revenue sources. There is no requirement that the country operate on a balanced budget, so, since the country was founded, the national debt has continued to grow.
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In 2008, the national debt stood at $9 trillion—the total debt for the entire history of the U.S. In two years, we added $4 trillion to our debt, increasing it by almost 50%!
It is no different than one of us racking up credit card debt on groceries, then getting a car loan and a mortgage on top of that. All the money you make goes to keep up your payments. Not smart.
The Lines Are About To Cross
While $13 trillion of debt is overwhelming to think about, what's worse is the breakneck rate of spending. It only took six months to go from $12 trillion to $13 trillion!
Imagine the U.S. debt and revenue as two lines on a chart. The revenue line is pretty flat, if not declining, but the debt line is shooting straight up. The two lines are about to cross, and that means the country's debt will exceed its ability to pay the payments.
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A Political Revolution
The majority of people in America want an environment that gives them a shot to make their own money, and they are not happy with the redistribution of wealth that is happening today. The ballooning debt is just one more reason for a political revolution—to fire the politicians who are doing the spending, regardless of their party.
That's why Dave doesn't buy in to the gloom and doom some political analysts believe. He talks with people all over the country who are angry about the direction the country is headed, and they are not willing to put up with it anymore.
Our debt problem has given our country the opportunity to come up with a solution. With such an impressive problem, the solution it inspires is bound to be great!
It doesn't have to take an act of Congress for you to get out of debt. Check out Dave's Financial Peace University class to get started today!