Dave Ramsey recently appeared on Fox Business and talked about a brand of personal finance guidance that he seems to have developed on his own without actually considering economic realities.
Podcast host and CEO ramsey solutions was interviewed inDagen and Daffy’s conclusion” posted on April 4, 2024, sharing a narrow perspective on how and how young people should manage their money.
Dave Ramsey said “terrible” Gen Z and Millennials who still live with their parents can’t afford to buy a home because they “aren’t working”.
The 63-year-old personal finance expert responded to a Wall Street Journal article claiming that many people under 40 disagree with his advice.
“I’m really good at clickbait,” Ramsey admits, before offering a deeply unrepentant and passionate take on why younger generations aren’t acquiring wealth at the same rate as baby boomers like him. began to talk.
“I’ve been doing this for 35 years and there’s always a group of people who say you can’t do it. So the system has to change. They’re the victims, they have rights. , and you know TikTok gives them a voice or Instagram gives them a voice or whatever, but it’s always been that way,” he exclaimed.
At the same time, Ramsey touched on the overwhelming economic devastation that Millennials and Gen Z have experienced in a very sideways way.
“The truth is, these Gen Z and Millennials have caught a lot. [expletive], a great generation,” he said. “What we see in both of them is that some of them are very serious people and very good with money. They believe in it. They save money. I believe, I believe in investing, I believe in free enterprise.”
Millennials, ages 30 to 44, graduated during the 2008 recession. Gen Z, ages 12 to 27, came of age during a global pandemic that has caused significant disruption to both social and economic conditions.
Add stagnant wages, an unbearably high cost of living, and a housing market that is inaccessible to most people, and you have a bitter cocktail that young people are told to drink without complaining.
Ramsey briefly acknowledged the economic hardships faced by young people before continuing: they are really bad. ”
He relied on well-worn metaphors to describe a generation hit by global economic events far beyond their control.
“They’re trophies for participation and they live in their mom’s basement. They don’t understand why they can’t buy a house because they don’t work, that kind of thing,” Ramsey said.
It is unfair and reactionary for Mr. Ramsey to blame the younger generation without thinking about finances.
His perspective ignores the massive economic downturn inherited by Millennials and Gen Z, staggering student loan debt, and inflation at a 40-year high.
according to A series of polls cited by Fortune magazine, 39% of Millennials who moved back in with their parents in the past year did so because of exorbitant rent costs. Roughly 30% of Gen Z adults now live with their parents because the rising cost of living means they can no longer afford to leave home.
Still, Ramsey was quick to defend the “400, 500 Millennials that work on our team here at Ramsey,” saying, “They’re amazing. They’re amazing.” I love them. There are Gen Zers all over the building. I love them. they’re great. ”
Ramsey seems to throw his support at struggling generations when it helps him, while also declaring that those who disagree with him are “just part of the TikTok rant.”
Much of Ramsey’s ethos relies on the idea of being enterprising and self-motivated, an idea that is inaccessible to many people because of the structural inequalities built into how America functions. .
Ramsey also said that his company “conducted the largest study ever conducted on North American billionaires and found that the typical American billionaire did not inherit any money. ‘ he claimed.
He said, “89% were not millionaires because of inheritance. They did it the old-fashioned way. They earned it.”
“The best way for them to become millionaires was simply to put money into their 401K over time and pay off their house,” he said. “It wasn’t really rocket surgery.”
However, employers are not required to offer a 401K, and many companies do not offer this benefit to entry-level or part-time workers. Saving income depends on access and opportunity. Whatever your profession, it’s not “rocket surgery.”
Alexandra Blogier is a writer on YourTango’s news and entertainment team. She covers social issues, pop culture, and all things related to the entertainment industry.