Going to school, getting a job, staying out of debt, diversifying your stock portfolio and investing in a retirement plan in which the government will take care of you in your old age has, according to Robert T. Kiyosaki of Rich Dad’s Conspiracy of The Rich, become the new fairy tale.
The author of the #1 bestselling finance book of all time, Rich Dad Poor Dad, with follow-ups such as Rich Dad’s Guide to Investing, Rich Dad’s Prophesy, has upped the ante once again with his newest addition to the Rich Dad franchise by challenging societal norms regarding personal and financial success in light of the recession and repeated U.S. government bailouts.
According to Kiyosaki, the central banking system (most specifically, the Federal Reserve System of the United States) was designed — conspired — in a way that cash flows directly into the pockets of the rich, where hard-working taxpayers simply cannot win the old-fashioned way, especially in a deflated economy.
In simple and often pleonastic language, the author explains the relationship between big banks and government, debt and America, and financial education and the poor.
One of the biggest conspiracies Kiyosaki explores is the lack of financial education in schools, which the author pins all the way back to when industrialist John D. Rockefeller created the General Education Board under a Prussian system, churning students into cogs and not independent thinkers.
The “cog” mentality, according to Kiyosaki, has led many today to believe the middle-class myth of working hard and living the American Dream, which has been all but dispelled as the recession strips honest pensioners of their retirement and a reported two million U.S. citizens were jobless in last February alone.
To counter the arid, new environment, the author urged focus on cash flow over capital gains, knowing the difference between good and bad debts and using it to your advantage. Readers are also told not to rely on a singular income that pays by the hour, month or year but that the future lies in “digital money,” where well-positioned people can “transact business 24/7” and slow ones are left behind.
Kiyosaki warns people not to be left behind like his “Poor Dad,” who stuck to the supposedly “tried-and-true” method of going to school, working hard, aiming for job security and saving money. His “Rich Dad” seized the market opportunities of a depression, became rich from it and found financial security instead.
The book itself is an example of moving with the digital times; originally released chapter by chapter online, the published paperback includes the testimonial feedback of readers who have been impacted by the trying times.
Kiyosaki principles have been revelations to many, who in turn apply his advice to their lives. As an obvious result of continuous online postings, the text of the book is fairly redundant and at times thinly edited, although the language helps in getting a point across.
Furthermore, as lucid and convincing as Kiyosaki’s arguments may appear, some of the content, like all conspiracy theories, should be taken with a grain of salt; much of what the author seems to state as fact are not properly referenced, appearing as if Kiyosaki was trying to make valid a point through repetition.
Moreover, by placing money-making at the top of the book’s objectives, past halcyon professions have been rendered less effective through its necessary but time-consuming process. An example of this is when Kiyosaki points out that a doctor can only see one patient at a time, whereas a person working online can cater to multiple businesses simultaneously. Might he be suggesting multiple webcam appointments to increase a doctors’ financial future?
Overall, the Rich Dad’s Conspiracy of The Rich is as entertaining as it is informative. Though some arguments are less convincing than others, Kiyosaki nevertheless shines a new light on what many have bitterly been taken for granted, potentially allowing middle-to-lower class taxpayers a change of financial course.