Dave Ramsey doesn’t ‘believe in stimulation control’ – and in a key way he’s spot on
Personal finance guru Dave Ramsey has a lot of great tips that have improved the lives of countless people – and they love to talk about it on social media.
But, like everyone else, Ramsey also has a lot of bad advice. As a personal finance writer, I have to admit that almost every personal finance writer I know on Twitter has been blocked by Mr. Ramsey for doing something like pointing out that his assumption of a 12% ROI is unrealistic.
Today on Fox News, Dave Ramsey discussed the stimulus package, which he said was nothing more than an attempt by progressive politicians to buy votes.
Ramsey initially criticized the student loan cancellation plan, with arguments that have often been made: The biggest recipients tend to be high-income people, and the benefits would flow to the economy over time. years rather than reviving the economy now.
Then he was asked about the stimulus payments and he said, “If $ 600 or $ 1400 changes your life, you were pretty much screwed already.”
The reactions on social media have been swift and ruthless.
We could certainly discuss how US economic policies have hurt the middle and lower classes in America, but it seems unlikely that Ramsey joined forces with the Democratic Socialists of America. And while it is possible that a family that is managing their finances perfectly will not need the extra money, part of the goal of the stimulus is to stimulate additional expenses.
In 2019, the US Census Department reported that the median household income in the United States was $ 68,703. If each member of the median family of four received a payment of $ 1,400, the total would be $ 5,600, an 8% increase. For families below this level, the benefit would be greater. For comparison, the cost of orthodontics ranges between $ 5,000 and $ 6,000, and many people believe that braces have improved their lives.
For a family of four affected by unemployment – unemployment claims are at 793,000 today – reductions in working hours, or Covid-related expenses such as new computers and a faster internet to handle distance learning, that $ 5,600 could go a long way in making your life easier. It won’t solve all of their financial problems, of course, and will likely go away almost as quickly as it does. This is why many economic thinkers often come up with more robust solutions – universal basic income, for example.
In other words, Ramsey may have thought he was criticizing people with bad spending habits. But he also revealed an unassailable truth about the precarious state of many Americans as we end a year of pandemic..
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This article originally appeared on GOBankingRates.com: Dave Ramsey doesn’t ‘believe in stimulation control’ – and in a key way he’s spot on