Dave Ramsey on Debt

[nynco]

time and time again......... really?

Because all the data shows that we had were paying off our debt during the 60s and our debt exploded during the time of lower taxes. As to the small uptick in revenue. Well that is because we borrowed to cover our costs. This thread is about our debt problem. So unless you figure out a way to cut taxes and spending and show how we can do that well......... that won't happen.

Voodoo economics failed........ look at our debt.

[tmleadr03]

Taxes, while lower than 1960's rates, are far higher revenue at lower levels. This has been shown time and time again that raising taxes doesn't fix the problem. At the heart of the problem is cutting spending. Using the family analogy again, if you are making $100K a year you are likely to be living on $100K a year, if you get a raise you might buy a bigger house or a better car. The moral being that giving the government more money is not the answer, when you are spiraling out of control with your debt you need to cut your expenses because YOU, as a person, just can't make more money, the government can - and does - and lives way beyond it's means.

You can see from hard numbers that the tax rate does not ever raise the revenue over 20% of GDP and typically it sits at 18% of GDP. In fact the average revenue as a percentage of GDP from 1980 till now is 18%. Simplify the code, lower the tax rate and make everyone get some scratch in the game. Business would love it and our economy would boom.

ETA: Hard numbers http://www.whitehouse.gov/omb/budget/Historicals

[UberTong]

You can see from hard numbers that the tax rate does not ever raise the revenue over 20% of GDP and typically it sits at 18% of GDP. In fact the average revenue as a percentage of GDP from 1980 till now is 18%. Simplify the code, lower the tax rate and make everyone get some scratch in the game. Business would love it and our economy would boom.

ETA: Hard numbers http://www.whitehouse.gov/omb/budget/Historicals

Not dogging on you at all tmleader, please don't think so. But I keep seeing ETA used...and maybe I'm thinking of something else, 'estimated time of arrival'...does it mean something else how you are using it, just curious. Thanks mang.

[Ronin13]

My wife and I took the Dave Ramsey Financial Peace course this year and it was great. I get the little newsletter now and typically I just delete it, but I liked the stat that came in the one today, interesting to view this way. I'm sure it will cause some kind of debate, go at it.

"If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." - Dave Ramsey

Sly devil, I got five words in and said "Where did I read this before?" and realized, you posted it on Facebook this morning! So true. I guess the government never took Mr. Ramsey's course. I heard about it and thought it might be a good idea to take, but just haven't been motivated to give it a go.

[tmleadr03]

Not dogging on you at all tmleader, please don't think so. But I keep seeing ETA used...and maybe I'm thinking of something else, 'estimated time of arrival'...does it mean something else how you are using it, just curious. Thanks mang.

Edited to add. I have a bad habit of finishing my thoughts after I hit submit.


Now about them BMWs....

[UberTong]

Edited to add. I have a bad habit of finishing my thoughts after I hit submit.


Now about them BMWs....

Ahhh gotcha, thanks....and how bout them Bimmers! Good man! Cheers dude, happy Friday.

[Inconel710]

time and time again......... really?

Because all the data shows that we had were paying off our debt during the 60s and our debt exploded during the time of lower taxes. As to the small uptick in revenue. Well that is because we borrowed to cover our costs. This thread is about our debt problem. So unless you figure out a way to cut taxes and spending and show how we can do that well......... that won't happen.

Voodoo economics failed........ look at our debt.

Again you have failed to look at real numbers and how people behave with their money in the real world. Here's the graph of Tax Revenue as a Percetage of GDP again. Even when the marginal tax rate topped out over 50%, the government never captured more than 20% or GDP. Also notice how revenue went UP after lowering taxes in 1986 and up again after lowering taxes in 2003! That's not voodoo, those are numbers you can't argue with.

The debt has exploded because of the failed belief in Keynesian economics and government getting too big. There's real "voodoo" economics!

[Ranger]

Again you have failed to look at real numbers and how people behave with their money in the real world. Here's the graph of Tax Revenue as a Percetage of GDP again. Even when the marginal tax rate topped out over 50%, the government never captured more than 20% or GDP. Also notice how revenue went UP after lowering taxes in 1986 and up again after lowering taxes in 2003! That's not voodoo, those are numbers you can't argue with.

The debt has exploded because of the failed belief in Keynesian economics and government getting too big. There's real "voodoo" economics!

You are talking to a brick wall my friend. He'll fire back with facts and figures from the Daily News or something. Whatever.

[two shoes]

Amen buddy, helped us out a bunch. 100% debt free this October, I'm gonna be so excited I will throw a party, yall fellers can come .

100% Debt Free?? Even the house? AWESOME!!! You are paying for the party in cash right???

We have taken his class twice as we are slow learners... nah, just need to reinforce the materials...

We're about to pay off our car next week!!! So no vehicle debts.... small victories...

I have never been able to spend my way out of debt. I have tried a few times but it hasn't worked... The only way I am getting out of debt now is to:
1. Have an emergency fund - No a sale at Bass Pro is not an emergency - A cash cushion in case a water pump fails on a car...
2. Stop all frivolous spending- Follow agreed upon budget... this is tough at first.
3. Make more money - Sell shit or get a part time job. Dave Ramsey says to sell so much that the kids think they are next!

This year we have paid down our debt by over $15,000 but still have a long way to go.

[tmleadr03]

You are talking to a brick wall my friend. He'll fire back with facts and figures from the Daily News or something. Whatever.

I linked to actual hard numbers from the white house that you can download in an excel spread sheet and that will not be read or understood by the left.