Image via Wikipedia
It is always good to keep things in context and perspective. Dave Ramsey is a family debt consultant and radio talk show host (The Great Recovery). As an entrepreneur, you’re tasked with keeping your costs down so you can make a profit rather than going deeper into debt. While most VCs (Venture Capitalists) and Angel investors invest in businesses, it is their money that they have earned and want to invest to earn more. It’s not about taking on debt, it’s about making more income. It’s about how much can you make for doing a service to your fellow man, whether it’s from a product or service that people want.
The win/win is when both parties get a benefit from a business transaction. When one or the other loses, it’s not good for business or the customer. And when an entrepreneur takes on debt, it lessens business growth, especially if the interest rate is high, and which our government spending and borrowing does affect business and economic growth.
So, here is Dave’s view of the US government and its spending habits if we allow it to continue:
“If the US Government was a family, they would be making $55,000 a year, they spend $96,500 a year, & are $366,000 in credit card debt. What’s the first step to get out of debt? Stop overspending! But that means a family that is used to spending $96,500 a year has to learn how to live on $55,000. That’s a tough pill to swallow. It works the same way for the government. You can’t borrow your way out of debt, whether you’re a typical American family or the entire U.S. government. At some point, you’ve got to say, “Enough is enough!” and make the hard cuts necessary to win over the long haul.” – Dave Ramsey (Update – Here’s the source of the quote. There’s a post going around the internet that gave different figures, I researched for Dave’s quote and updated the figures to reflect this comments, even though it’s not the accuracy of the figures, but the principle of the figures that are alarming. Ed.)
Now Dave puts things into the right frame of mind for the average American.
If you want to know our national numbers, check out US Debt Clock and see where we are now. We’ve almost reached the point where our national debt will overtake our national assets. National debt: $14.5 Trillion. National Tax Revenue: $2.2 Trillion. Federal Spending: $3.6 Trillion.
Wouldn’t you agree?