Why the Rich are Getting Richer | Robert Kiyosaki | TEDxUCSD

Summary

In this engaging talk, Robert Kiyosaki discusses the deepening wealth and income inequality, emphasizing its moral and spiritual implications. He critiques the current financial system, highlighting how savers are losing and how the rich continue to thrive due to financial strategies like tax cuts and bailouts. Kiyosaki reflects on his personal journey, the lessons from his 'Rich Dad,' and the importance of financial education. He introduces concepts such as assets, liabilities, and cash flow, advocating for entrepreneurial thinking over traditional job security. Ultimately, he calls for a shift in mindset and the power of financial literacy to change lives.

Takeaways

• 😀 Wealth and income inequality is a major moral and spiritual crisis in the world, especially in America, as the gap between the rich and poor grows larger.
• 😀 Unemployment among young people leads to a future of unemployability, as they miss out on crucial job training and skill development.
• 😀 In 1970, $1 million at 15% interest earned $150,000 a year, but by 2016, quantitative easing and low interest rates made it nearly impossible for savers to earn money on their savings, widening the wealth gap.
• 😀 The middle-class income has been shrinking over time, and corporate practices like shopping at Walmart have contributed to job outsourcing to other countries.
• 😀 The increase in poverty and entitlement mentality is a significant social issue, with more people expecting government assistance rather than taking responsibility for their own success.
• 😀 The author predicted a global financial crash in his book 'Rich Dad's Prophecy,' and three major crashes (2000, 2006, 2008) preceded the financial instability observed in 2016.
• 😀 The wealthiest benefit most from tax cuts, which disproportionately favor the top 1%, increasing inequality.
• 😀 The lack of financial education in schools leaves young people unprepared to manage money, creating a cycle of poverty and financial dependency.
• 😀 Financial education is not about saving money and investing long-term in the stock market, but about learning to acquire assets and manage cash flow through entrepreneurial thinking.
• 😀 Words are powerful and shape financial success: shifting the mindset from 'I can't afford it' to 'How can I afford it?' can open up opportunities for wealth creation.

Q & A

What is the main moral crisis discussed in the script?

The main moral crisis discussed is the growing wealth and income inequality, which is seen as a spiritual crisis in America and across the world. The gap between the rich and the poor is widening, and it is affecting the younger generation, leading to long-term challenges in job training and employability.

What was the impact of the 1970s financial environment on savers?

In the 1970s, savers benefited from high interest rates, such as 15%, allowing them to earn significant returns on savings. However, by 2016, due to policies like quantitative easing, savers faced negative interest rates, meaning it would cost them money to save, which exemplifies the deterioration of the financial system.

What is the criticism of the US government's approach to poverty?

The criticism is that while the government claims to have beaten poverty in America, it has instead led to a growing entitlement mentality. People are becoming dependent on others, including the government, instead of being taught financial independence and self-reliance.

What are the key causes of the gap between the rich and poor?

The key causes of the gap are the financial system's changes, like low interest rates and quantitative easing, which disproportionately benefit the wealthy, and the decline of middle-class incomes. Additionally, global outsourcing, such as jobs moving to countries like China and Pakistan, contributes to the shrinking middle class.

What did Robert Kiyosaki predict in his 2002 book 'Rich Dad's Prophecy'?

In 'Rich Dad's Prophecy', Robert Kiyosaki predicted a global financial crash in 2016, which was based on patterns of previous financial crises, such as the dot-com crash of 2000, the real estate subprime crisis of 2006, and the banking crisis of 2008.

What does Robert Kiyosaki believe is one of the reasons the rich keep getting richer?

One reason the rich get richer is due to tax policies, such as the Bush tax cuts, which disproportionately benefit the wealthiest 1% of the population. These policies allow the rich to accumulate even more wealth, exacerbating the inequality.

How did Robert Kiyosaki's early life and education influence his financial philosophy?

Robert Kiyosaki's early life was marked by an interest in financial education, which was discouraged by his 'poor dad' who was highly educated but financially uninformed. His 'rich dad', an entrepreneur, taught him the principles of acquiring assets, which became the foundation for his financial philosophy.

What is the significance of the game Monopoly in Kiyosaki's financial education?

Monopoly played a crucial role in Kiyosaki's financial education, as it taught him the basic concepts of acquiring assets and managing money. He emphasizes that learning through simulations, such as playing Monopoly, helps individuals make mistakes and learn from them in a safe environment, which is essential for financial growth.

What is the 'cone of learning' and how does it relate to financial education?

The 'cone of learning', created by Professor Edgar Dale, explains how humans learn most effectively through experiential methods such as simulations, rather than passive methods like reading or listening to lectures. Kiyosaki highlights this as a key reason why traditional education fails to teach financial literacy effectively.

What is the Cashflow game and how does it promote financial education?

The Cashflow game is a tool created by Kiyosaki and his wife to teach financial literacy. It combines elements of Monopoly with the concept of a financial statement, helping players understand how to manage income, expenses, assets, and liabilities in a practical, hands-on way. It has become a global tool for teaching financial education without relying on traditional schooling.