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What Dave Ramsey gets wrong about poverty
Financial advisor Dave Ramsey is also an evangelical Christian.
November 30th, 2013
09:59 AM ET

What Dave Ramsey gets wrong about poverty

Opinion by Rachel Held Evans, special to CNN 

(CNN)– Dave Ramsey is rich. And he makes his living telling other evangelical Christians how they can get rich, too.

Host of a nationally syndicated radio program and author of multiple best-selling books, Ramsey targets evangelical Christians with what he calls a “biblical” approach to financial planning, one that focuses primarily on the elimination of consumer debt. His for-profit Financial Peace University is billed as “a biblically based curriculum that teaches people how to handle money God's ways."

Much of what Ramsey teaches is sound, helpful advice, particularly for middle-class Americans struggling with mounting credit card bills. I have celebrated with friends as they’ve marked their first day of debt-free living, thanks in part to Dave Ramsey’s teachings and all those white envelopes of cash he urges his students to use instead of credit cards.

But while Ramsey may be a fine source of information on how to eliminate debt, his views on poverty are neither informed nor biblical.

Take, for example, a recent article by Tim Corley posted to Ramsey’s website. Entitled “20 Things the Rich Do Every Day,” the article presents some dubious statistics comparing the habits of the rich with the habits of the poor, including:

“70% of wealthy eat less than 300 junk food calories per day. 97% of poor people eat more than 300 junk food calories per day.”

“76% of wealthy exercise aerobically four days a week. 23% of poor do this.”

“63% of wealthy listen to audio books during commute to work vs. 5% of poor people.”

One need not be a student of logic to observe that Corley and Ramsey have confused correlation with causation here by suggesting that these habits make people rich or poor.

For example, a poor person might not exercise four days a week because, unlike a rich person, she cannot afford a gym membership. Or perhaps she has to work two jobs to earn a living wage, which leaves her little time and energy for jogging around the park.

A poor family may eat more junk food, not because they are lazy and undisciplined, but because they live in an economically disadvantaged, urban setting where health food stores are not as available: a so-called “food desert.”

Critics were swift to point out these discrepancies and among the critics were some of Ramsey’s fellow evangelical Christians who also noted that, though the book of Proverbs certainly heralds success as a common return on faithful labor, nowhere does the Bible guarantee that good habits lead to wealth.

The writer of Ecclesiastes observed that "under the sun the race is not to the swift, nor the battle to the strong, nor bread to the wise, nor riches to the intelligent, nor favor to the skillful; but time and chance happen to them all."

And far from having contempt for the poor, Jesus surrounded himself with the needy and challenged the excesses of the rich. “Blessed are you who are poor,” he said, “for yours is the kingdom of God. … But woe to you who are rich, for you have already received your comfort” (Luke 6:24).

"It is easier for a camel to go through the eye of a needle," Jesus famously said, "than for someone who is rich to enter the kingdom of God."

It’s hard for the wealthy to flourish in the kingdom that Jesus inaugurated because the economy of that kingdom runs so contrary to the economies of the world. It rewards the peacemakers over the powerful, the humble over the proud, the kind over the cruel, and those who hunger to do the right thing over those whose wealth has convinced them they already are.

Ramsey responded to the pushback with an addendum to the original post calling his critics “ignorant” and “immature” and instructing them to “grow up.”

“This list simply says your choices cause results,” he said, again committing the false cause fallacy. “You reap what you sow.”

The list, he said, applies only to people living in “first world” countries, where Ramsey believes economic injustices are essentially nonexistent. While the poor in developing countries are so as a result of external circumstances beyond their control, the poor in the United States have no one to blame but themselves.

“If you are broke or poor in the U.S. or a first-world economy, the only variable in the discussion you can personally control is YOU,” Ramsey says. “You can make better choices and have better results.”

America, he argues, has prospered as a direct result of its “understanding and application of biblical truths” which have led to “life-changing industry, inventions and a standard of living never known before on this planet.”

“There is a direct correlation,” he concludes, “between your habits, choices and character in Christ and your propensity to build wealth.”

For Christians, Ramsey’s perceived “direct correlation” between faith and wealth should be more troubling than his other confused correlations, for it flirts with what Christians refer to as the prosperity gospel, the teaching that God rewards faithfulness with wealth.

Ramsey’s particular brand of prosperity gospel elevates the American dream as God’s reward for America’s faithfulness, the spoils of which are readily available to anyone who works hard enough to receive them.

But such a view glosses over the reality that America was not, in fact, founded upon purely Christian principles (unless one counts slavery, ethnic cleansing, gender inequity, and Jim Crow as Christian principles), so we should be careful of assuming our relative wealth reflects God’s favor. (The Roman Empire was wealthy, too, after all.)

It also glosses over the reality that economic injustice is not, in fact, limited to the developing world but plagues our own country as well.

When medical bills are the biggest cause of bankruptcy in the United States, there are systemic injustices at work.

When people working 40-hour weeks at minimum wage jobs still can’t earn enough to support their families, there are systemic injustices at work.

When approximately 1% of Americans hold 40% of the nation’s wealth, there are systemic injustices at work.

When the black unemployment rate has consistently been twice as high as the white unemployment rate for the past 50 years, there are systemic injustices at work.

And throughout Scripture, people of faith are called not simply to donate to charity, but to address such systemic injustices in substantive ways.

The 17-year-old girl who lives in a depressed neighborhood zoned for a failing school system who probably won’t graduate because her grades are suffering because she has to work part-time to help support her family needs more than a few audio books to turn things around.

People are poor for a lot of reasons, and choice is certainly a factor, but categorically blaming poverty on lack of faith or lack of initiative is not only uninformed, it’s unbiblical.

God does not divide the world into the deserving rich and the undeserving poor. In fact, the brother of Jesus wrote that God has “chosen the poor in the world to be rich in faith and heirs of the kingdom that he has promised to those who love him” (James 2:5).

God does not bless people with money; God blesses people with the good and perfect gift of God’s presence, which is available to rich and poor alike.

And that’s good news.

Rachel Held Evans is the author of "Evolving in Monkey Town" and "A Year of Biblical Womanhood." She blogs at rachelheldevans.com. The views expressed in this column belong to Rachel Held Evans.

- CNN Belief Blog

Filed under: Belief • Bible • Business • Christianity • Ethics • evangelicals • Faith • Leaders • Money & Faith • Opinion

soundoff (2,299 Responses)
  1. Keith

    Dave Ramsey is just a big a shyster as any of the rest. He is rich because he is taking advantage of other people.

    December 14, 2013 at 3:55 pm |
    • John M. Harris

      Actually, people pay him for a service. A service, by the way, the vast majority are satisfied with to the point they recommend him to others. Which is, thus, why he is so successful. Your statement is quite revealing of your total ignorance of how wealth is actually created in a free market economy, and it also tips your hand of your ideological blinders that make you think people who have money somehow stole it or kept poor people from getting it, as though if Dave had less, poor lazy people would have more. What a joke.

      December 19, 2013 at 4:30 pm |
      • a real guy ok

        Nope. 🙂 Ya dope.

        December 19, 2013 at 9:33 pm |
      • Keith

        It is a big club and you are not a member. Making great wealth is a crap shoot, it isn't something anyone that is willing to work can do. The inequity of the American system is shameful. Ramsey is making money selling simplicity and arrogance, he is a shyster.

        I understand the American system quite well, I have been pretty successful. we are both self employed and my wife and I both in the upper middle class. We will never want for much, but the America we experienced is gone and the youth of today do not have the same opportunities that we had, in education or employment.

        December 19, 2013 at 10:35 pm |
  2. Gary Douglas

    Thank you! I've felt this way about Ramsey for a long time. Thought I was the only one until now.

    December 14, 2013 at 10:16 am |
    • Dave

      So specifically what makes you feel that way about Mr. Ramsey? Is it something in one of his books or something he said on his radio show? Do you not like his style or his message? Would you have a problem with him if he were an atheist, agnostic, Muslim etc? I'm just curious as to the specifics as to why people don't like him.

      December 26, 2013 at 11:20 pm |
  3. Rlbos

    Just another "religious' capitalist gangster.....

    December 13, 2013 at 2:32 pm |
  4. Kent

    It is staggering how many people need to enroll in his course, simply to pay the electric bill on his 13,300 sq. ft. house. The traditional response, "Who cares how he spends his money, he got rich by helping poor people" doesn't work any more. There is no question that he should be rewarded for dishing out some solid advice – but he shows absolutely no sign of restraint in spending his cash. Warren Buffett could give this man some pointers on non-lavish living.

    December 12, 2013 at 11:05 am |
  5. Dhatcher

    I believe Dave is giving everybody insight on what people have done to be wealthy or at least not be in poverty. I worked in the inter city for 8 plus years and saw wasted tax payers dollars going to people who should be working in stead of receiving a hand out. One guy I knew drank his way to a free government check each month who never paid a dollar into the tax system and bragged about it. I worked my way through college while several people I know where on Pell Grants and scholarships.

    December 9, 2013 at 1:51 am |
    • Peter

      If that is what his list is meant to do then for accuracy's sake and to reflect the daily practice that most insures the continued wealth of this country's upper class it needs:

      21) Exploit the working class by paying them less than a living wage, forcing their workers onto public assistance rolls so that government funds can support their workforce and subsidize their kleptocratic profit margins.

      December 9, 2013 at 8:29 am |
    • Tom

      Look up the definition of 'confirmation bias'. Hopefully, you'll understand.

      December 13, 2013 at 12:32 pm |
  6. AJ Hostetter

    "The 17-year-old girl who lives in a depressed neighborhood zoned for a failing school system who probably won’t graduate because her grades are suffering because she has to work part-time to help support her family needs more than a few audio books to turn things around."

    This is literally my reality, as I teach at a horribly performing school where the administration is pressured into unethical but technically legal shortcuts to maintain funding, and our ESL students fight just to attend school. It's not all the fault of the government, teachers, or parents, but I do have many, many students born into poverty who must work, as Lee Evans suggests, to support their families; and who, due to inadequate access to or knowledge about birth control, have often perpetuated the cycle of poverty by having children they cannot afford to support by the time they reach me in ninth grade.

    I teach here through a controversial but in my opinion useful program called Teach for America, because I felt my Christian convictions led me away from an evangelical culture that condemned illegal immigrants, and into a world where I could care directly for them. My students did not choose when or where to come into our country, but they are precious individuals, and they deserve an equal CHANCE, at least, at happiness–not Ramsey's suggested condemnation of a situation into which they're born.

    That said, a tragicomic battle we fight daily is to keep the kids from skipping class to spend what little cash they do have on the egregious 20-chicken-nugget-packs or 12-tacos-for-$5-style deals offered at the McDonald's and Taco Bell within walking distance. Yet as Lee Evans says, it is due in large part to a dearth of nearby fresh, healthy food within price range for a family in which both parents work physically demanding jobs that keep them from home.

    December 9, 2013 at 1:36 am |
  7. sueehul

    Dave Ramsey is simply trying to give poor people the advantage the rich people have – education about how to handle money. Some will take advantage of it. Some won't. That's all.

    December 8, 2013 at 10:11 pm |
  8. Iria Abram

    See this study completed just this summer by Harvard professors:
    http://www.equality-of-opportunity.org/
    There are far more factors involved with economic and financial mobility than Ramsey suggests.
    I completed his 13 week Financial Peace University through a local church a few years back and, yes, there are SEVERAL holes in his theories and biblical principles.

    December 8, 2013 at 5:22 pm |
  9. Middle class

    Ramsey Rocks!!!! I am glad to see a lot of positive comments for dave. If you think he sucks then you are probably for credit cards and paying interest for the rest of your life. He simple educates people on how to handle money just as your grandparents and great grandparents have tried to teach you. Ramsey is for the people and if you are against his philosophy on handling money and trying to be successful then you are against the people.
    philly

    December 8, 2013 at 9:44 am |
  10. Pae

    " God does not bless people with money; God blesses people with the good and perfect gift of God’s presence, which is available to rich and poor alike."

    Well said.

    December 8, 2013 at 12:57 am |
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