Dave Ramsey has seen it all when it comes to fortune telling. And when it comes to the national debt, it’s clear: people have been sounding the alarm about the “end of the global economy” for decades, but so far, they’ve been wrong.
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Ramsey shared his thoughts on the conversation, explaining that, in his late 20s, he was very concerned about the rapid growth of the national debt. Back then, he thought it could lead to economic collapse. “I saw people in my country writing books about the end of the world’s economy,” he said. “And they keep making mistakes, so I don’t want to write that book.”
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While he acknowledges that debt is a serious concern, Ramsey doesn’t believe it’s about to hurt the economy. “Is it an issue? Yes, it is relevant. But will it cause a crash? Obviously not,” he said.
Ramsey explained that the national debt affects the economy in subtle but important ways. The government pays its debt by selling Treasury bonds, which investors buy because they earn interest. But Ramsey points out that if those investors had invested their money in businesses or other areas of the economy instead, it would have created more growth and opportunities.
“It’s stealing money from the economy that way,” Ramsey said. He added that debt servicing costs continue to drain the federal budget. “The only interest in it is making a bigger and bigger part of the ‘budget,’ as if they have a budget.”
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Despite his concerns about the national debt, Ramsey remains confident in the stock market as a safe place to invest. He admitted that there has always been a level of manipulation in the market, but still encouraged people to invest. “I think it’s still a safe place for people to invest. I have millions and millions of dollars in my wallet,” he said.