Episode 234: Dave Ramsey Is WRONG About the National Debt

In a recent video a high school senior called in to Dave Ramsey’s show where he offered some good advice but also played down the severity of the nation’s debt crisis. Dave refers to two different books on how the national debt was going to ruin the country back in the 80’s, which obviously did not come to pass. The trouble is not the level of debt a country has in general, it’s how much debt there is in relation to their gross domestic product. This is why the current situation is different. The single most important measurement is the debt-to-GDP ratio. According to the World Bank, a healthy debt-to-GDP is 77% or lower. Right now, the debt-to-GDP ratio is trending well beyond that threshold over the next 16 years. Dave claims the average American investor should not have to worry about the national debt. While that’s partly true, what they really should be worrying about is the kinds of accounts they are investing their money in. Former Comptroller General David Walker explicitly pre...