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Chapter Nine
Add to this the eclipsing of America by China as the nation with
the largest GDP and the trend toward pushing services (such as
accounting, information technology, and telesales) to nations such
as India, and it becomes clear that wages will have to come down or
productivity must skyrocket in order to meet the challenges of our
rapidly changing global marketplace.
The next great transfer of wealth is taking place by ignorance. The
Industrial Age’s entitlement mentality of big government and big business
should be on its way out. But here we are, in the midst of the Information
Age, and we are grasping at old solutions to new world problems.
In 1989, the Berlin Wall came down. As stated earlier, in my
opinion, that event was as significant as the year 1492 when Columbus
bumped into the Americas in his search for Asia. In some circles, 1492
was the official beginning of the almost 500-year Industrial Age. The
end was marked in 1989. The rules have changed.
History Is a Guide
My rich dad encouraged me to learn the game well. After I
learned it well, I could do what I wanted with what I knew. I write
and teach out of concern that more people need to know how to take
care of themselves financially and not become dependent upon the
government or a company for life support.
I hope I’m wrong about what I see coming down the road
economically. Maybe governments can keep making promises to take
care of people, keep on raising taxes, and keep on going into greater
debt. Maybe the stock market will always go up and never come down
again. And maybe real estate prices will go up again, and your home
will become your best investment. And maybe millions of people will
find happiness earning a minimum wage and be able to provide a good
life for their family. Maybe this can all happen. But I don’t think so.
Not if history is any guide.
Historically, if people live to be 75 years of age, they live through
two recessions and one depression. As baby boomers, we have gone
through three recessions, and some question whether we are entering
another depression. Maybe there will never be one, but history says
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