Yesterday I was listening to the Dave Ramsey radio show. Dave invited listeners who support the “Occupy Wall Street” movement to call in and share why they do. One of his listeners called and shared that he supported the OWS protests. When Dave asked him to explain why, the young man shared the following:
Money never gets to the people
He said he supported the movement because it was wrong the way money worked in the US. He said that money never gets to the people. He went on to explain why. Those who have money like big banks, corporations and millionaires kept it. And those who don’t have money…well, they don’t have money because those who do never give it to them. Dave seemed a bit confused and so asked him to explain what he meant by “the way money worked.” Here’s the essence of the young man’s explanation. The government prints money. Then the government gives that money to the Federal Reserve. The Federal Reserve, in turn, gives money to the banks. The banks then give money to Wall Street. Wall Street gives money to corporations. And that’s where it stops. The money never gets down to the people.
Believing something that not’s true
Dave listened patiently and then began to explain that money does not work that way. No one gives money. The banks, by providing a service to their customers, earn money. Those who work at the stock exchange on Wall Street earn money by trading stocks. Corporations, like Apple, earn money by producing products that people want to buy. No one gives money. People earn it. Dave went on to tell the young man that the whole reason why he supported the OWS protests was based on a myth. It was based on something that was not true. He then challenged the young man to research the way money works and to rethink his support of the protests.
One thing you may hear which is not true
As I thought about Dave’s conversation with this young man, it made me think about some of the things you might hear that really aren’t true. Let me share one thing you may hear in our day particularly if you watch much “Christian” TV. It’s the idea that if you just follow God faithfully, everything is going to go your way. Your health with be great. Your bank account will be full. Your car will be new. That’s because following God always brings good fortune. Perhaps you’ve heard something like this before. If you have, I hope you realize that it is not true. The truth is, sometimes following God doesn’t make life easier. It does just the opposite.
Several years ago one of my friends was asked to do something at work which he believed was wrong. He told his boss that he would not do what he was asked. He shared that, as a Christian, he could not do what he was asked. Guess what! He got fired. Sometimes following God does not result in everything going our way.
I did not listen to Dave’s talk, but I wish that I had. According to what you’ve shared here though, Dave conveniently started talking about earning money at the lower bank level. From all the research that I can find, the government DOES give money. They DO print it and GIVE it to the federal reserve. Mr. Ramsey is either misled himself or purposefully being misleading to his listening audience (which reminds me very much indeed of the televangelists that you refer to).
The reason the government prints money and gives it to the federal reserve is because the federal reserve is part of the government.
The federal reserve LENDS money to banks, which banks in turn lend to consumers. We pay interest on those loans, which makes up the banks’ profits. Nobody is getting “free” money.
The irony of all these protests is that our government is the most inefficient organization in our country. If a corporation owed as much as our government, they would be bankrupt. How people equate knowing how to make and keep money to being evil is beyond me.