Full transcript of author of Rich Dad Poor Dad, Robert Kiyosaki’s TEDx Talk: Why the Rich are Getting Richer at TEDxUCSD conference.
Robert Kiyosaki – Author of Rich Dad Poor Dad
This subject: wealth and income inequality are the biggest moral crisis, and I’d also say it’s the spiritual crisis in America today, all around the world. This gap between the rich and everybody else is reaching critical proportions. And I think one of the biggest crises is the young people today’s young unemployed become tomorrow’s unemployable, they lose valuable jobs training skills.
So I’m going to show — as a picture is worth a thousand words, I’ll just show you some pictures about how rapidly this inequality as well as opportunity inequality is growing.
So what’s happening in America today is savers are losers. You know, most parents say to their kids, go to school and save money and work hard. But in 1970 when I graduated from school, $1 million at 15% interest earned me $150,000 a year. Now you could live in $150,000 a year back then.
But in 2016, do this thing called quantitative easing, Bernanke called it Greenspan Put, it’s $1 million at negative 5 basis points, it’s going to cost you $1 million to save $1 million. That is how deteriorated our financial systems have become. And this is one of the causes between the gap — between the rich and the poor.
The other thing is that fewer and fewer families are receiving middle-class incomes, it’s going down. Every time we shop at Walmart, we ship dollars and jobs over to China and Pakistan and all the other countries. That’s capitalism.
Another thing that’s happening when people’s incomes go down, they become dependent. Now the US government tells us that poverty has been beaten in America. But maybe poverty has been beaten but what has increased is the entitlement mentality. The attitude that the government and other people should take care of me, and this is a moral crisis as well as spiritual crisis. I learned in Sunday school: give and you shall receive. And too many people today think they should receive.
This is other crisis here: social security. Being Japanese, the Japanese called it ‘ah, social security’. I’m a racist, I know. But anyway I’ve met so many people my age, there is about 75 million baby boomers on the top of the baby boom chain, we expect the government to take care of us. That’s a lot of highly educated people. That is a crisis.
So in 2002, I published this book Rich Dad’s Prophecy. 14 years later, prediction was that 2016 there’d be a global financial crash. We’re in 2016 and here we are in 2016. You can see it coming. In the first 10 years of this century we have had three major crashes: in 2000 with the dot-com crash, followed by the 2006 real estate subprime crash and then 2008 the banking crash. The question is: is this next? This is the giant crash of 1929.
Every time I listen to those guys on CNBC, I call it bubble vision. They keep talking about the giant crash of 1929. I tell you what? Nothing compared to this one coming. So that’s why, I write and I speak and I’m very concerned about our futures, our well-being and the state of the economy.
So I am going to talk today about why the rich are getting richer. Commercial message — my next book coming out. But I have to explain — I’ll explain some of the tricks of the trade why guys like me get richer and everybody else is not. And this is quite interesting. This is one of the reasons the rich are getting richer. This is the Bush tax cuts, the biggest tax cuts goes to the top one-tenth of a percent. Thank you, George. I appreciate that. They have no morals, those guys.