Can You Grow Your Way Out Of Debt And Reach Prosperity?
Guest Post by Dennis Miller at Miller On The Money
President Trump campaigned on “Make America Great Again,” promising more jobs and prosperity.
“Theoretically” a healthier economy will generate more tax revenue, solving our economic woes. If revenues grow at a higher rate than expenses, we can reduce the debt. Sounds like Reagan’s “supply side economics 2.0.”
Whitehouse.gov proclaims:
- Wall Street sentiment is surging as the stock market reaches new record highs. (Several major investment banks) elevated their S&P 500 Index year-end targets — now predicting record gains to continue.
- Consumer outlook is on the rise. With core inflation at its lowest level since March 2021, expectations for an inflation spike have “completely receded.”
- Price hikes never materialized. A new study found that prices for imported goods have actually declined faster than prices for overall goods — confirming that tariffs have had little effect on prices.
- By all metrics, President Trump is overseeing another economic boom. Jobs numbers have trounced expectations for four straight months, gas prices remain at their lowest level in four years, and blue-collar wage growth has seen the largest increase in nearly 60 years.”
Pundit Bill Bonner weighs in:
“Growth! Growth! Growth!
More jobs! More income! Abundance! Joy, from coast to coast!
…. The numbers are fishy, but it looks like this will add $26 trillion to the nation’s debt by 2035.
‘Don’t worry about it,’ say the Republicans. ‘Growth will make the debt irrelevant.’
…. Is ‘growth’ a false god? In preview, what we’ll see is that the feds can produce ‘more’ of just about everything — even more money itself. But what they can’t produce is real growth.
The statistics are misleading…or outright frauds.”
Is it possible to grow your way out of debt?
Absolutely!
For many years I lamented, “How come there is so much month left at the end of the money?” We had two mortgages, car payments and never seemed to be able to get ahead.
Constant money worries caused many sleepless nights. As the nest began to empty, things improved. We got out of debt and began saving for retirement.
My youngest son, a college finance major at the time, asked how the turnaround was done. I explained the major turning point was starting our own business; our income increased significantly. Because of legal issues with former partners, we banked a “war chest” – uncertain about the outcome.
Excellent results, litigation settled, and Jo and I made some major decisions. We were tired of the constant stress about money issues. Using our war chest, we paid off our debts, including the mortgage, and vowed to never-ever rent other people’s money again.
| Some question the wisdom of paying off your mortgage. I’ve asked many people if they have ever regretted doing so. The response is universal, “Never, it was one of the best decisions we’ve ever made!” Count me in! |
My son’s response – “Basically, you grew your way to prosperity?”
Not exactly, it wasn’t quite that simple. While the increased income was a big factor, we made several choices/decisions.
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Author: Dennis Miller
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