Speaking of Endgames
Dave Ramsey is an inspiring financial guru. While I do not agree 100% with all of his work I recognize that he can have a positive impact on the financial lives of many people who hear his message and follow through with his baby steps.
So whats the endgame for the Dave Ramsey strategy?
If everyone stops buying lattes, Starbucks will close stores. This one is true enough. Starbucks is on the ropes and is making cutbacks to support future viability. 600 or so store have been shuttered so far and counting.
Without credit cards, many people tied to the manufacture and support of credit card transactions will be out of jobs.
Is frugal living going to bankrupt the country? Is not spending money going to usher in the collapse of our capitalist system as a whole?
Well, no. That would be silly. Lets look at a scenario or two and examine it not within the convenient vacuum of fear.
No More Lattes is Bad News for Starbucks
Welcome to the new economy where there are many different options for people to purchase their morning coffee. Even if everyone in the entire country stops going to Starbucks and the company tanks, the US economy will move on. Starbucks is simply is not a large enough influence on our ecomony to materially matter.
Starbucks’ loss is the gain of Dunkin Donuts and McDonalds everywhere. They have both moved in to fulfill a need for lower cost without sacrificing quality of product. Increased competetion for low cost premium cup of joe is capitalism in action. I will not shed a tear for Starbucks.
No Credit Cards Means Bad News for Plastics and Support Personnel
Dave Ramsey may view credit cards as a horrible financial tool but debit cards are fine. So if everone uses them, the plastic manufacturers will have to make due. Demand will drop and with it prices. Once again capitalism in action.
How about all of those support people? Someone has to answer the phones and manage the servers. Well, debit cards need all of that too. And last I had to call my credit card company, it seemed they were all to eager to fulfill my needs without any actual human being answering my call anyways.
When you follow the Dave Ramsey way, you are going to eventually be saving a whole lot more money than you ever put away while racking up your credit card balances. That money doesn’t just get stuff under mattresses across the country. It gets invested. What would you think is needed to process and support all of those new investors?
You got it, lots of support personnel, fancy servers, computer administrators and more.
Whats in the Dave Ramsey endgame? Certainly not financial calamity. You have to look at the bigger picture to avoid missing the forest through all the trees.