Dave Ramsey Is Going To Get Hate for This

[Music] brought to you by the every dooll app start budgeting for free today Kevin ask with the presidential election coming up I have been doing research on who to vote for sorry I can only laugh at that uh some politicians want to raise the minimum wage to $15 an hour what are the pros and cons of this my thought is that it means products and services will go up in price and everyone will be right back to the same Financial spot they were in before the increase okay this is one of my favorite things to talk about this is economics 101 and Dave I talk about this some on my show and it's hysterical to see people just come at me with the vital and the hate over basic economics as though I came up with it uh but it's very simple when a minimum wage is raised um it puts Financial pressure on the economy in a negative way U but but the bleeding hearts and people who don't understand basic economics go well this Santa Claus Is providing money right but the reality is is that those in customer pays for it well yeah the grocery store the the uh fast food place passes on the increased cost of your combo meal and so you gripe about inflation and yet you celebrate federal minimum wage ideas now let me just address that uh this is nothing more than a political football because 1.1% 1.1% of Americans are on the minimum way that's exactly right and one freaking percent right and if you look at what happened during covid there was societal pressure on this and we saw a couple big stores namely Walmart and Target raised their minimum wage voluntarily and a lot of companies followed suit and then came we went from $10 to $15 to $20 in about 18 months and then you saw the great resignation as a result of that and now very stubborn inflation so if you want to know how it actually works pay attention to how inflation Rose from 2020 to the end of 2022 so it's not argu able you can't debate it you know you can chase Your Tail if you want to it's mathematics but it just it is it's math when the person putting the bread on the Shelf at the grocery store makes $20 instead of $10 that cost of that bread has to go up or the grocery store loses money and goes out of business and the cost of the bread goes up and so you buying the bread pay more the cost of the eggs go up when the person has hand Ling the eggs is paid more it's very simple it it's uh because it it's like we're going to raise taxes on corporations no you're not corporations don't pay taxes they pass the cost of the tax through to the buyer of their goods and services their customers pay the taxes they're built into your product so if you raise taxes on corporations you raise prices on the people that are doing it it's economics it's not it's not it's not liberalism or conservativism it's just freaking math if you run a business you have to charge more than it costs you mhm which by the way Dave let's point this out because we have a very large audience all political spectrums make sure you hear this if you're somebody right now and there's a lot of Americans three out of five Americans new data just came out believe we're in a recession which we are not by the actual definition of it but it's inflation that's making people feel this way hear this when you hear certain people on the left say we're going to raise taxes on small business and we're going to raise taxes on the corporations what you don't understand is is the opposite of that policy to cut taxes on small business to cut taxes on big business means that the cost of everything in your life will go down which means you keep more of your paycheck if you're disciplined it's really important that people understand this stuff because it gets politicized and you you think that there's not a there's not you think it's a one and done but all it is is a chain reaction you're pushing a domino when you raise the cost of something in business that's right you're pushing a domino and then the next thing down costs more so if G here's an example okay if gas is $5 a gallon instead of $2.50 a gallon the truck delivering the stuff to the store has to pay twice as much in fuel cost so they're going to charge more to deliver the stuff to the store so the store is going to charge you more when you buy that loaf of bread that came off the bread truck y it it it's a domino there's a Domino's going all the way down the line here and and so you are paying for the truck driver's higher fuel bill when you buy stuff that that truck carries by definition you don't have a choice and it's not a you know you can not like that or like that well that's evil it's capitalism we'll try communism if you visited those countries yeah they have a line to get the bread the bread sucks you can't get it there's a shortage because they don't produce goods and services uh and so these are what you know people who love communism are people who have not traveled okay go to the country I've traveled all over the world about the only thing I'm sure of is I'm always happy when I get back to America okay and you can dislike some of the stuff that goes on in America we're not perfect I don't have that but I got to tell you man there's very few places in the world you can have this quality life and it is this freaking system that gave you this quality of life so that's your minimum wage answer oh by the way 1% of Americans are on minimum wage so if you raise the minimum wage it does absolutely nothing so it's political bull crap is what it is the only other people that are affected are some of the Union contracts are indexed off of minimum wage so whatever minimum wage does the Union contract gets the same bump so it does affect actually more than the 1% but it's still a minuscule thing it's absolute political bull crap what does Drive the cost of entry level work up is a supply demand issue that's what we ran into at Co there was a shortage of workers and these stores were having to pay people more money to come to work and so that's the only way they could get them was to pay them more that is a free market pressure to drive wages up not a regulated pressure there's a difference and so in either case though the $20 person versus the $10 person putting something on the Shelf is built into the cost of whatever they put in the Shelf whether it's driven by the rise of minimum wage which it probably doesn't affect that almost every grocery stor is paying more than minimum wage almost every restaurant's paying more than minimum wage they can't attract workers right now unless they do targets Walmarts yeah every absolute fact Amazon everybody nobody's none of these people are working for seven and a quarter that's right paying above the the actual federal minimum wage it is a you could move the minimum wage and it wouldn't change those people's pay one dime that's correct one dime doesn't change a thing but but it's so it's political bull crap we we're we're For the Working Man we're trying to help the little man oh bull crap you haven't tried to help the little man in decades either one of you if you did you'd cut your own pay and balance your budget quit spending s dad gun much if you want to help the little man you cut taxes on the little man if you actually cared about the little man both of you you RS and D's sicken me that's right just the CRA we're for small business you haven't done anything for small business in decades except tax our assumptions off I mean it's absolutely crazy while we're at it uh if if both parties cared about the average American and their income and their children's Children's opportunity we'd have a balanced budget amendment it'd be a single issue balance the Federal budget States all across this country have a constitutional requirement to actually balance their state budgets and we don't have a and we're we're now $35 trillion doll in national debt and I think it's the issue no one's talking about it and we the people come up it's not going to we just walk around going well they'll figure it out no they won't and so you know anyway that's They Don't Really Care all of this is politics and it's all perception it's all emotion and um you know and this idea somehow you're going to uh straight you know you're going to ruin the economy so that you can ruin America it's a bad plan y'all it's a bad plan because you can't have this good a life anywhere else anywhere else in the world the best shot at going from poverty to wealth in the history of the world statistically is to be born in America right now in poverty versus being born anywhere else in poverty communism does not lift people out of poverty socialism doesn't lift people out of poverty Margaret Thatcher said it best so problem with socialism is eventually you run out of other people's money Venezuela in the news today today yeah today all right this is the Ramsey Show create your free every dollar budget today the simplest way to budget for your life