In a fiery recent broadcast, blunt-talking personal finance authority Dave Ramsey issued a brutal wake-up call to younger Americans who feel crushed by the cost of living. On his popular investing podcast, 'The Ramsey Show', he tore into millennials and Generation Z for what he described as poor financial skills, while pointing the finger at powerful institutions.
The Core of the Affordability Crisis: Debt, Not Prices
Ramsey, one of the most recognisable voices in the money advice sphere, acknowledged that millennials and Gen Z face "a serious pinch". However, he insisted this squeeze is "not because things are too expensive". Instead, he launched a startling accusation, claiming "the large banks and the car companies and the US Congress" have "conspired to screw them."
He highlighted the nation's record levels of consumer debt as proof, stating, "We have record credit card debt. The most ever." Ramsey accused major financial institutions of "brainwashing" young people into believing that credit cards and chasing rewards points are a path to prosperity, a notion he labelled "mathematically ludicrous."
Car Payments, Student Loans, and the 'Financial Health' Myth
The commentator didn't stop at credit cards. He also took aim at the soaring cost of automobiles, revealing that "20 percent of the borrowers that left the car lot last month left with a car payment over $1,000 a month." He further identified student loans as a monumental burden, criticising a system that allows banks to lend "$100,000 to an 18-year-old who can't buy beer" because the government guarantees the debt.
Ramsey also challenged the sacred status of credit scores, arguing forcefully that "It is not a financial health score." He contended that a high FICO score merely measures "how much you've been screwed by Citi Bank and Fifth Third and these large banks."
A Stark Warning to Young Consumers
His message to young consumers was unequivocal: "These people are not your friends." He described debt as "the most advertised and marketed product on the planet" and issued a direct challenge. "If you don't make it your job to quit being screwed, then you're going to have affordability issues," he warned.
Concluding the segment, Ramsey had a blunt directive for frustrated young adults: "If you want to be pissed off at something, don't be pissed off at capitalism… your problem is you stepped up into the bear trap."
This harsh critique arrives against a backdrop of premium credit card fee hikes. Just months earlier, American Express unveiled a new version of its Platinum Card, with the annual fee jumping from $695 to $895. Amex defends the increase by claiming the perks are worth over $3,500. Similarly, JPMorgan Chase recently increased the annual fee for its premium Sapphire Reserve card to $795, up from $550, promising more than $2,700 in value.
