In a blistering recent episode of his popular investing podcast, 'The Ramsey Show', blunt-talking finance personality Dave Ramsey unleashed a harsh critique on younger generations struggling with the cost of living.
The Core of the Affordability Crisis: Debt, Not Prices
Ramsey, one of America's most recognised personal finance voices, acknowledged that Millennials and Gen Z face 'a serious pinch'. However, he vehemently disputed the common complaint that goods and services have simply become too expensive. Instead, he pointed the finger directly at powerful institutions.
'It is not because things are too expensive,' Ramsey declared. He argued that 'the large banks and the car companies and the US Congress' have effectively 'conspired to screw them.'
The 'Brainwashing' of Young Borrowers
Ramsey highlighted the nation's record levels of consumer debt, particularly credit card balances, calling out the financial industry's marketing tactics. He accused banks of 'brainwashing' young adults into believing that using credit cards and chasing rewards points is a path to prosperity, a notion he labelled 'mathematically ludicrous.'
He also took aim at the sacred cow of credit scoring, arguing a high FICO score is not a measure of financial health but rather 'how much you've been screwed' by major lenders.
Car Payments and Student Loans: A Crippling Combination
The commentator provided stark figures to illustrate the debt burden. He stated that 20 percent of borrowers who drove off a lot last month have a monthly car payment exceeding $1,000. On education debt, he criticised the system for loaning '$100,000 to an 18-year-old who can't buy beer', facilitated by government-backed loans.
His warning to young consumers was unequivocal: 'These people are not your friends,' he said, describing debt as 'the most advertised and marketed product on the planet.' He concluded, 'If you don't make it your job to quit being screwed, then you're going to have affordability issues.'
A Stark Message Amidst Premium Card Launches
Ramsey's fiery comments arrive against a backdrop of major banks rolling out increasingly expensive premium credit cards. Just months prior, American Express unveiled a new version of its Platinum Card, with the annual fee rising from $695 to $895. Amex defends the hike by claiming the perks offer over $3,500 in value.
Similarly, JPMorgan Chase recently increased the annual fee for its premium Sapphire Reserve card to $795, up from $550, its largest increase since launch, while promoting over $2,700 in benefits.
Ramsey's final, blunt advice for frustrated young adults reframed the blame: '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.'
