Dave Ramsey Was Asked How He'd Handle The Nation's $36 Trillion Debt: 'Oddly Enough, Lowering Taxes Does Work — It Seems Oxymoronic'

Dave Ramsey is known for helping people dig their way out of debt, one snowball at a time. He's blunt, he's bold, and that's exactly what people tune in for.

So when someone wrote in to ask if his famous strategy could work on a national level — specifically, if it could tackle the government's $36 trillion in debt — he didn't shy away.

The question came during an episode of "The Dave Ramsey Show" posted last week, where Ramsey and his daughter, Rachel Cruze, read a letter from Steve in Indiana. He had a simple, loaded question: Would Ramsey's debt snowball plan help the country climb out of its massive financial hole?

Don't Miss:

• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
• Are you rich? Here’s what Americans think you need to be considered wealthy.

Just for good measure, Steve threw in, "I wish Trump had you on the DOGE team."

Ramsey laughed, saying he doesn't exactly blend in with the D.C. crowd. He explained that while he's friendly with a few state governors, he doesn't really "fit in" anywhere in Washington. That said, he still had plenty to say about what he'd do if he were running the show.

And yes, he actually does believe some of the same debt-free principles could apply to the federal government.

"The principle of being debt-free still stands," Ramsey said. "And the principle of living on less than you make still stands."

But it wasn't just basic budgeting advice. Ramsey dove into the economics behind what he sees as a better way to generate revenue.

"To a certain degree, as you lower taxes, the economy heats up," he said. "Because the people that are making money are putting money back into their businesses, and they make yet more money — and they pay yet more taxes, even though the rate is lower."

Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. See which asset class has outpaced the S&P 500 (1995-2024) – and with near-zero correlation.

That, he said, leads to the ultimate twist.

"If you lower taxes, it heats up the economy and you end up collecting more revenue," Ramsey explained. "Oddly enough, lowering taxes does work. It seems oxymoronic."

He pointed to the Clinton-era budget as a rare example of balance in Washington, noting that the tax code at the time still reflected policies from the Reagan administration. The connection? The Laffer Curve, which is the theory that lower taxes can actually increase government revenue. Ramsey said it's been misunderstood or dismissed by critics, but in his view, the data holds up.

Of course, more income is only half the fix. The other half, Ramsey said, is cutting spending — and cutting deep.

"You cut the snot out of the expenses," he said. "If you could ever get it right-side up, where there's more income than outgo… then could you start to pay off the debt? Absolutely you could."

See Also: ‘Which Bucket Do I Draw From First?’ Suze Orman Explains To 67-Year-Old The Best Order For Tapping Into Her Retirement Accounts

Ramsey praised the Trump administration for taking a bold stance on federal spending, saying it's the first time in his life he's seen a president willing to slash the budget without worrying about political fallout. He compared it to personal finance — when people finally get serious about change, they stop caring about what others think. "You don't care what your broke brother-in-law thinks about your car," he said. 

When it comes to managing debt, Ramsey's got the track record and the advice. Whether it scales to $36 trillion? That's above his pay grade.

Read Next:

• Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.60 per share now.
• With shares starting at $1.52, this could be your chance to invest in the future of healthcare.