Ruby and Rails development environment

How do you setup VS Code, which is a great code editor, for Ruby development?

Well you start by installing these gems:

gem install solargraph
gem install rubocop

The you install the following extensions to VS Code:

endwise
ruby solargraph

And finally you add the following to the Emmet Settings in settings.json (Emmet 2.0 is built into VS Code nowadays).

"emmet.includeLanguages": {
  "erb": "html",
  "ruby": "html"
}