The Power Of Zero Show Did Joe Biden Just Solve the National Debt Crisis?
Did Joe Biden just solve the national debt crisis? Here’s why you shouldn't be celebrating just yet.
David explains why most people believe passing the Inflation Reduction Act might be the first step to taming inflation and curbing the national debt crisis.
According to Maya MacGuineas, the President of the Committee for a Responsible Federal Budget, this legislation represents an essential first step toward fixing the debt crisis by enacting several policies related to energy, climate, health care, and the tax code.
David points out that Maya is brilliant at what she does, but she might be wrong on this one because the data actually paints a totally different picture.
The numbers according to statista.com reveal the national debt is projected to be over 30.6 trillion by the end of 2022 and 43.3 trillion by the end of 2031.
David explains that since the Inflation Reduction Act will only save $313 billion over the next 9 years, it does nothing to reduce the current debt. It only slows the growth of the debt by a measly 2.5%.
As far as fixing the national debt crisis is concerned, David is convinced that the only way to drive change is to increase revenue and reduce spending.
The Inflation Reduction Act will introduce numerous impactful activities that might reduce government spending and solve inflation, but David feels it's not a serious attempt to fix the national debt.
As David explains, with the national debt crisis growing into an intractable problem, being in the zero percent tax bracket is now more important than ever.
Mentioned in this episode:
David's books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram