Robert Kiyosaki has been called a populist and a free loader. His books have been criticised for their fluffy feel-good nature and that they dont show readers the truth. Think what you want but i know alot of what i do in the next few years will have the backing of this man’s philosophy. I am reading Jefferey Sachs’ The End of Poverty and i want to see if it’s all that. The economists of the world could be making noise just because he’s their tight drinking buddy, y’know.
Exerpts from one book…
In the Agrarian Age, the rich were those who owned a castle that overlooked large tracts of fertile land. These people were known as the monarchs and nobles. If you were not born into this group, you were an outsider with very little chance of becoming an insider. The 90/10 rule controlled life. Therefore, the 10% who were in power were there because of marriage, birth or conquest; the other 90% were serfs or peasants who worked the land but owned nothing.
Then came the Industrial Age and wealth shifted from agricultural land to real estate. Improvements such as buildings, factories, warehouses, mines and residential homes for the workers were placed on top of the land…improvements. Suddenly, rich fertile agricultural land dropped in value because the wealth shifted to the owners of the buildings upon the land. In fact, an interesting thing happened. Suddenly rich fertile land became less valuable than rocky land, where farming was difficult. Rocky land became more valuable because it was cheaper than fertile land. It could also hold taller buildings such as sky scrapers or factories and it often contained resources such as oil, iron and copper that fueled the Industrial Age.
When the Berlin Wall came down and the World Wide Web went up, many of the rules changed. One of the most important rules that changed was the 90/10 rule. Although it’s likely that only 10% of the population will always control 90% of the money, the access to the 10% has changed. Today it does not take being born into a royal family as did in the Agrarian Age. It does not require massive sums of money, land and people to join the 10%. The price of admission today is an idea, and ideas are free.
Robert T. Kiyosaki and Sharon L. Lechter.
Rich Dad’s Guide to Investing