Why the Rich are Getting Richer | Robert Kiyosaki | TEDxUCSD

TEDx Talks

21 Jul 201620:09

EducationalLearning

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TLDRThe speaker addresses the growing wealth and income inequality as a moral and spiritual crisis, highlighting the challenges faced by the younger generation and the flawed financial system. He criticizes policies like the Bush tax cuts and the lack of financial education, which contribute to the rich-poor gap. Drawing from his book 'Rich Dad Poor Dad,' he shares his journey and the importance of financial literacy, emphasizing the need to acquire assets, not liabilities, and to change one's mindset and vocabulary towards wealth-building.

Takeaways

🌍 Wealth and income inequality is considered a significant moral and spiritual crisis globally, with a widening gap between the rich and the rest.
📉 The speaker warns of the dangers of youth unemployment leading to a loss of valuable job training skills and becoming unemployable in the future.
📈 The script highlights the rapid growth of inequality and opportunity inequality, suggesting that visual representations can effectively convey this issue.
💰 The concept of 'savers are losers' is introduced, illustrating how financial systems have deteriorated with low or negative interest rates impacting savings.
🏪 The decline in middle-class incomes is attributed partly to shopping habits that outsource jobs and dollars to other countries, a byproduct of capitalism.
📉 The speaker criticizes the increase in government dependency and entitlement mentality, suggesting it contributes to the moral and spiritual crisis.
👴 Concerns about social security are raised, with the large baby boomer population expecting government support, which could be unsustainable.
📚 The author's book 'Rich Dad's Prophecy' predicted a global financial crash around 2016, which the speaker believes is unfolding as discussed.
💼 The speaker explains that the rich get richer through mechanisms like tax cuts that disproportionately benefit the wealthiest, contributing to inequality.
🎓 The importance of financial education is emphasized, with the speaker sharing his personal journey from a 'Rich Dad' and 'Poor Dad' perspective.
🎲 The script introduces the Cashflow game as a tool for financial education, teaching players about income, assets, liabilities, and cash flow through simulation and practice.

Q & A

What is the main issue discussed in the script?
-The main issue discussed in the script is wealth and income inequality, which the speaker describes as a moral and spiritual crisis in America and around the world.
What does the speaker suggest is the consequence of young people becoming unemployed?
-The speaker suggests that young people who become unemployed risk becoming unemployable in the future, as they lose valuable job training skills.
What financial concept does the speaker criticize with the phrase 'savers are losers'?
-The speaker criticizes the current financial system where traditional saving methods, such as earning interest on savings, are no longer beneficial due to low or negative interest rates, making savers effectively 'losers'.
What is the 'Greenspan Put' mentioned in the script?
-The 'Greenspan Put' refers to a financial policy under Alan Greenspan's tenure as Federal Reserve Chairman, where the speaker implies that the policy of quantitative easing has led to a situation where saving money can actually cost you money.
How does the speaker describe the impact of shopping at places like Walmart on middle-class incomes?
-The speaker describes that shopping at Walmart and similar places contributes to the outsourcing of jobs and dollars to other countries, which in turn affects middle-class incomes negatively.
What does the speaker believe has increased due to reduced incomes?
-The speaker believes that reduced incomes have led to an increase in the entitlement mentality, where people expect the government and others to take care of them.
What book did the speaker publish in 2002 that predicted a global financial crash?
-The speaker published a book called 'Rich Dad's Prophecy' in 2002, which predicted a global financial crash by 2016.
What is the main purpose of the 'Cashflow' game mentioned in the script?
-The main purpose of the 'Cashflow' game is to educate people on financial literacy and to provide a platform for learning about income, assets, liabilities, and cash flow in a simulated environment.
How does the speaker define 'financial literacy'?
-The speaker defines 'financial literacy' as the understanding of basic financial terms such as income, assets, liabilities, and cash flow, which are essential for managing one's finances effectively.
What is the speaker's view on the importance of words in financial literacy?
-The speaker views words as crucial in financial literacy because they shape one's mindset and approach to money. Using the correct terms and phrases can lead to a better understanding and management of finances.
What is the speaker's advice on changing one's financial situation?
-The speaker advises changing one's words and mindset towards money, such as asking 'How can I afford it?' instead of saying 'I can't afford it,' and focusing on acquiring assets rather than liabilities.

Outlines

00:00

🌍 Wealth and Income Inequality - A Global Moral and Spiritual Crisis

The speaker, Robert Kiyosaki, author of 'Rich Dad Poor Dad', opens the discussion on the critical issue of wealth and income inequality, which he considers the greatest moral and spiritual crisis of our time. He highlights the widening gap between the rich and the rest of society, the challenges faced by the youth in terms of unemployment and loss of valuable job training skills, and the impact of policies like quantitative easing on savers. Kiyosaki emphasizes the importance of financial education and criticizes the current financial system, suggesting that it favors the rich and exacerbates inequality. He also touches on the entitlement mentality and the challenges of social security, especially with the aging baby boomer population.

05:01

📚 The Journey of Financial Education and the Role of 'Rich Dad Poor Dad'

In this paragraph, Kiyosaki shares his personal journey of seeking financial knowledge from a young age. He contrasts the traditional educational system, represented by his 'poor dad', who was an academic, with the practical financial lessons he learned from his 'rich dad', an entrepreneur. He discusses his own educational background, including his time at a prestigious academy and his service in the Vietnam War, which shaped his views on money and success. Kiyosaki also mentions his first business venture and the influential encounter with Dr. R. Buckminster Fuller, which shifted his focus from personal wealth to making a broader impact on society.

10:04

🏦 The Financial System's Failings and the Fight Against 'Grunch'

Kiyosaki delves into the concept of 'Grunch of Giants', a term coined by Dr. R. Buckminster Fuller to describe the exploitation by the ultra-rich. He criticizes the financial system, particularly the Federal Reserve and Wall Street, for their role in economic crashes and subsequent bailouts that favor the wealthy. The speaker also addresses the lack of financial education in schools, comparing it to the historical prohibition of educating slaves, and shares his decision to start teaching financial literacy outside of traditional education. He introduces the game of Monopoly as a metaphor for his early financial education and the importance of learning through simulation and making mistakes.

15:04

💰 Empowering Financial Literacy Through Education and the Cashflow Game

In the final paragraph, Kiyosaki discusses his initiative to spread financial literacy by creating the Cashflow game, which is designed to teach players about financial statements and the concepts of income, assets, liabilities, and cash flow. He emphasizes the importance of understanding these basic financial terms and how they differ from traditional educational teachings that focus on job security rather than financial freedom. Kiyosaki also highlights the power of words in shaping one's financial mindset and encourages people to change their language from one of limitation to one of possibility and action. He concludes by celebrating the global impact of the Cashflow game and the empowerment it brings to individuals seeking financial education and independence.

Mindmap

Keywords

💡Wealth and Income Inequality

Wealth and income inequality refers to the unequal distribution of financial resources and earnings among different social classes or individuals within a society. In the video, it is presented as a significant moral and spiritual crisis, highlighting the growing gap between the rich and the rest of the population, which is reaching critical levels. The speaker uses this concept to discuss the broader economic and social implications of such disparities.

💡Opportunity Inequality

Opportunity inequality is the unequal access to resources, services, and life chances that individuals have based on their social or economic status. The speaker mentions this in the context of young people losing valuable job training skills due to unemployment, which further exacerbates the wealth gap and limits social mobility.

💡Quantitative Easing

Quantitative easing is a monetary policy in which a central bank creates new money to buy government bonds or other securities in order to inject liquidity into the economy. In the script, the speaker criticizes this policy, referring to it as the 'Greenspan Put,' and explains how it negatively impacts savers by offering low or even negative interest rates, thereby penalizing those who save money.

💡Middle-Class Incomes

Middle-class incomes refer to the earnings typically associated with the middle social-economic stratum. The speaker notes a decline in the number of families receiving middle-class incomes, indicating a shrinking middle class and a potential increase in economic polarization.

💡Capitalism

Capitalism is an economic system based on private ownership of the means of production and the pursuit of profit. The speaker mentions capitalism in the context of outsourcing jobs to other countries, suggesting that while it may benefit companies, it can lead to job losses and economic hardship for workers in the home country.

💡Entitlement Mentality

Entitlement mentality is a belief in one's right to certain privileges or benefits without having to work for them. The speaker criticizes this mentality, suggesting that it has increased due to economic hardships and contributes to a moral and spiritual crisis by fostering dependency on government and others.

💡Social Security

Social security is a government program that provides financial support to the elderly, disabled, and others in need. The speaker discusses the expectations of the baby boomer generation to be taken care of by social security, which he sees as part of a larger crisis of dependency and an overburdened system.

💡Financial Education

Financial education involves teaching individuals about managing money, making informed financial decisions, and understanding economic principles. The speaker emphasizes the lack of financial education in schools and advocates for its importance in empowering individuals to understand and navigate the economy effectively.

💡Monopoly

Monopoly is a board game that simulates buying, selling, and developing property to generate income. The speaker uses Monopoly as a metaphor for his financial education, explaining how playing the game taught him valuable lessons about investment and asset management.

💡Cashflow

Cashflow in a financial context refers to the movement of money into and out of a business or individual's finances. The speaker introduces the Cashflow board game as a tool for teaching financial literacy, emphasizing the importance of understanding financial statements and the difference between assets and liabilities.

💡Financial Literacy

Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management. The speaker underscores the importance of financial literacy in achieving economic empowerment and criticizes the education system for not teaching these critical skills.

💡Assets and Liabilities

Assets are items of value owned by an individual or company with the potential to generate income, while liabilities are obligations or debts. The speaker explains the distinction between assets and liabilities as a fundamental concept in financial literacy, using examples from the script to illustrate the importance of acquiring assets and avoiding liabilities.

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The speaker contrasts the mindset of an entrepreneur, who seeks to acquire assets and build wealth, with that of an employee seeking job security, emphasizing the role of entrepreneurship in economic growth and personal wealth creation.

💡Mistakes

Mistakes are errors made due to ignorance, forgetfulness, or accident. The speaker discusses the importance of making and learning from mistakes as part of the process of gaining experience and knowledge, particularly in the context of financial education and business.

💡Words and Language

Words and language are tools for communication and thought. The speaker highlights the power of words in shaping one's financial mindset, using phrases like 'I can't afford it' and 'How can I afford it?' to illustrate how language can either limit or empower an individual's approach to financial opportunities.

Highlights

The gap between the rich and everyone else is reaching critical proportions.

Today's young unemployed become tomorrow's unemployable due to lack of job training skills.

Savers are losers in the current financial system.

The decline of middle-class incomes is causing greater dependency on government assistance.

There is a growing entitlement mentality where people expect the government to take care of them.

Social Security is facing a crisis with the large number of baby boomers expecting government support.

The prediction of a global financial crash in 2016 was made in the book 'Rich Dad's Prophecy'.

The crashes in 2000, 2006, and 2008 were major economic events, and a larger crash may be imminent.

The rich are getting richer partly due to tax cuts benefiting the wealthiest individuals.

Financial education is crucial, yet it is not taught in schools, leading to a lack of financial literacy.

The 'Rich Dad Poor Dad' book series provides financial education based on real-life experiences.

The speaker emphasizes the importance of acquiring assets and understanding financial statements.

The 'Cashflow' board game was created to teach financial literacy in a practical, engaging way.

Changing one's mindset and vocabulary around money can significantly impact financial success.

The speaker encourages people to take control of their financial education and not rely solely on formal schooling.

Transcripts

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