Families spending less this Independence Day

This is a rush transcript from "Your World," July 3, 2012. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: Well, talk about a Fourth of July dud. Turns out that folks are doing Independence Day on the cheap, and even home barbecues on at least the cheaper.

Dave Ramsey is not surprised, but, believe it or not, Dave is encouraged, because if Washington exercised half as much restraint, taxpayers wouldn't be the ones getting grilled.


CAVUTO: But Washington isn't doing that, Dave, is it?


I wish we could -- I wish we could just have a little bit of restraint in Washington. But...

CAVUTO: No way. No way.

RAMSEY: Yes, all the studies and the surveys are telling us that spending for Independence Day is down. Maybe it's because some folks are trying to get independent of their credit card.

And it may very well be that the holiday landing in the middle of the week is causing people to just work through this holiday in some cases or maybe not plan as big a trip or as big a shindig because of the way the holiday falls right here in the middle of the week.

CAVUTO: You know, you know, I love you dearly because I think the world of you.

But I think you have caused this economic implosion.


CAVUTO: And I have a reason here.


CAVUTO: I remember, years ago, before you became the big star you are today, you were preaching this, everybody be cheap, everybody start cutting back.

Lo and behold, everyone listened to you, and look what we get going.

RAMSEY: That's it.

CAVUTO: So, I think you should reverse course now. I want you -- right here, I want you to say, guys, break out the plastic, I want you to spend like drunken sailors, on your mark, get set, go.


CAVUTO: Could you do that for me?

RAMSEY: Spend like a drunken congressman, right?

CAVUTO: There you go.

RAMSEY: Don't be picking on -- don't be picking on sailors.

CAVUTO: I'm telling you, your words -- you have got whole legions of people. They're zombies listening to you.


CAVUTO: I love them dearly, but you're scaring them. And now -- now they're afraid to spend.

RAMSEY: So, Cavuto, you think we're going to look back in history and call this the Dave Ramsey recession. Is that it?


CAVUTO: The Dave Ramsey recession.


CAVUTO: Laugh while you may, young man. Laugh while you may.


CAVUTO: It started with you. I want it to close with you.


CAVUTO: I need you to say to all Americans right now, all right, you have done enough. You have gone too far. Start spending, right now.


RAMSEY: See, I think that -- I think it might have been you, because I went to dinner with you and you forgot your wallet.


CAVUTO: And you know what your problem is? Your -- for those of you who don't know Dave, and who doesn't, but some of you might not if you're in a cave, he urges spending cash. He does not -- so he carries these big wads of bills.

If people didn't know you, they would think you're a drug dealer, and you're walking around with singles. And you're paying at a -- well, we never went to pricey restaurants.

RAMSEY: Now, let me ask you, is this the face of a drug dealer? I mean, really?

CAVUTO: Well, that's true.


CAVUTO: That's true.

RAMSEY: That's most uncool drug dealer on the planet.

CAVUTO: You do have the face of a cheap person. You have the face of a cheap person.


CAVUTO: But, in all seriousness, what you're saying is that now, in the down times, people are doubling down on that, and they should be.

Right? But when can they recover? When their balance sheets recover?

RAMSEY: Well, here's the deal.

In all seriousness, saving money and getting yourself out of debt stabilizes your family. And the family and the economics of the family are the building block of our economy.

CAVUTO: All right.

RAMSEY: And so it's a good thing. That's where small business is born and that's where things happen.

So -- but I do want folks to enjoy this holiday. We live in the greatest country the world has ever known.

CAVUTO: All right.

RAMSEY: And so let's celebrate our Independence Day.

CAVUTO: OK. Well, go to Nordstrom's or something, for God's sake.


CAVUTO: Always good seeing you, Dave Ramsey, the prophet of financial doom.

RAMSEY: Thanks, Neil.

CAVUTO: But he -- he practices what he preaches.

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