Donald Trump and Robert Kiyosaki are best-selling authors and popular speakers because they teach people to expand their means and improve the quality of their lives, rather than work hard to live below their means. They want people to work and invest to win.
A Little History
During the Hunter-Gatherer Age of human development, humans lived in tribes and, for the most part, all people were equal. If you were the chief of the tribe, you still lived pretty much like the rest of the tribe. Chiefs did not have Lear jets, multimillion-dollar estates, and golden parachutes.
In the Agrarian Age, there evolved a two-tiered society. The king and his rich friends on one tier and everyone else (peasants) working for the king on another tier. Generally, the king owned the land. The peasants worked the king’s land, and paid the king a form of tax by giving the king a share of their harvests. The peasants owned nothing and royalty owned everything.
In the Industrial Age, the modern middle class was born in America and so was democracy.
The founding fathers of America were so impressed by the five tribes of the Iroquois Confederacy that lived in what is today known as New England that they used the tribal model as the model for our democracy. That model elected representatives, an upper and lower house, and a supreme court (made up of entirely women).
At the same time the founders of America were copying the Iroquois form of democracy, the idea of democracy and a middle class was still considered unrealistic in Europe—all while a powerful middle class and democratic society were blooming in the United States.
Today, in the Information Age, the middle class is slowly dying and so is democratic capitalism. Unlike any other time in history, there really is a very wide and growing gap between the haves and have-nots. Are we going backward, into the Agrarian Age, when there was no democracy and only two classes, or will we evolve into a new form of capitalism and democracy?
Problems on the Horizon
Just as we are only now becoming aware of the effects of global warming, we are also only now becoming aware of the effects of the loss of our middle class. Currently, most members of the middle class feel safe and secure. They are content, even though most are aware that we have problems on the horizon.
They feel safe because they believe their government will step in and take care of them and protect them. Little do they know, there is little that government can do to protect them. Governments, even the U.S. government, cannot protect their people as they once could simply because the problems are now global problems. For example, the price of oil is determined by countries outside the control of the United States. Terrorism is not a war against nations. Terrorism is a war against ideas. A terrorist can strike anywhere and disappear into the populace. And globalization, causing the loss of so many American jobs, is the problem of multinational corporations becoming richer and more powerful than many countries. This globalization has also been made more possible through the World Wide Web making communication instantaneous anywhere in the world. Communication has become possible any time any where.
On the home front, just as environmentalists are noticing that some species of frogs are disappearing, economists are noticing that pensions and health care are disappearing for the middle class and poor. In a few years, the biggest baby boom generation in history begins to retire all over the world. Most governments do not have the financial resources to keep their promises.
Businessmen, Not Politicians
People expect their elected government officials to take care of the growing problems facing the poor and middle class. Donald Trump and Robert Kiyosaki are not politicians (although Donald has considered running for president). They write this book as entrepreneurs, investors, and educators.
Instead of promising to solve your problems, they want you to avoid becoming a victim of the problems. Do not expect your political and government officials to provide solutions. Do not think you are entitled to a secure, prosperous and healthy life. Instead Donald and Robert want you to become rich and become part of the solution to the problems we face as a nation and the world.
Not a How-To Book
When it comes to money, many people want to be told exactly what to do. They often ask specific questions, such as, “I have $25,000. What should I do with it?” When you tell people that you do not know what to do with your money, they are happy to tell you what to do…and their recommendation is that you give your money to them.
This book is not a how-to book. Donald and Robert will not be telling you what to invest in. They will share with you how they think, why they win financially, and how they see the world of money, business, and investing.
A Matter of Vision
Most rich people do not want you to know what they know or their secrets to becoming rich. But Donald and Robert are different. They want to share their knowledge with you.
One of the definitions of leadership is vision. This book is about vision, about seeing what most people never see through the eyes of two men who have won (and occasionally lost) at the game of money. Why We Want You To Be Rich is a book about how these two men think and why they think the way they do. Through their eyes you will gain additional insight into how you can improve your financial future.
A Word of Caution
In the world of money, there is another word often used—transparency. Transparency has many definitions. Three definitions applicable to this book are:
1. Free from pretence or deceit
2. Sheer enough to be seen through
3. Readily understood
People want greater vision so they can see with their own eyes and make their own decisions. Because our educational system does not really teach people to be financially literate, people cannot see. And if they cannot see, there is no transparency. Due to this lack of vision and transparency, people are simply investing by giving their money to someone else to invest. They blindly follow the advice of “work hard, save money, invest for the long term in mutual funds, and diversify.” They work hard and follow this investment advice because they cannot see.
A word of caution: If you believe that working hard, saving money, investing for the long term in mutual funds, and diversifying is good advice then this book may not be for you.
Donald and Robert do not invest in mutual funds because mutual fund companies are not required to be transparent; they are not required to disclose their true expenses. Since most amateur investors cannot see, this fact does not bother them. Professional investors, as Donald and Robert are, require transparency in all their investments.
While the financial advice of saving money and investing in mutual funds may be good advice for the poor and middle class, it is not good advice for people who want to become rich. This book is about seeing through the eyes of two rich men and understanding a world of money very few people get to see.
How History Affects Today
This book will also discuss how history has brought us to this financial state of emergency. Some important dates are:
1971: Our money stopped being money and became a currency when it ceased being backed by gold. This is the year that “saving money” became obsolete and bad financial advice. Today, the middle class has very little in savings.
