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Rich dad, poor dad – the story that formed my views on making money

micaelwidell.com

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Re: Rich dad, poor dad – the story that formed my views on making money

#101

Post by branchless »

tome wrote: post #99
branchless wrote: post #95

Earlier quoted context omitted.

Yes they are horrible and yes they are exploiting people. It's not a service, they are exploiting the capped supply of a basic need. The argument about "if nobody rents out" is just wrong. Are they going to knock the place down if they don't rent? Yes there is a need for rentals but this should be within a world where we have land value tax so the bulk of the gain is passed onto the state to reduce labour taxes, redu…

And suppose that someone follows the teachings of Rich Dad, Poor Dad but doesn't buy land or property, instead investing in something else that generates revenue, otherwise following the book's advice to the letter. Do you still object? On what grounds? I can see you think that land tax would be fairer (I'm inclined to agree) but that's really not related to the message of the book. Are you opposed to private ownersh…

I think land prices are at the root of it all and I think for most of these advice books "assets" == "property", which includes pulling forward money creation in order (renting money from the bank) to capture labour via land monopoly.

Were this to stop I think that we'd see a lot more actual productive work and a fall in the need for people to work all the time. The existing system ensures we all work all the time. If we get more productive rents go up to capture the gain.

If this stopped we'd see more people able to opt out of the labour market and we'd see a shift towards employees dictating terms, who would demand a higher cut of their value added via higher wages. They'd also get to keep more as most income tax would be replaced by land value tax.

If you invest in wealth generation that's fine to take a share of this. I'd like to see the high end taxed so being born isn't like joining a game of Monopoly near the end but in general this works for me.

What I'd really like to see is people who create wealth getting to keep that. What I see now is a bunch of b@stards exploiting our flawed / corrupt debt based system to capture wealth creation.

Land is a special case. You can make more laptops so if want to corner the market in that go right ahead, waste your money. Land is finite and it's the source of all wealth. Why should someone own this in perpetuity and be free to extract a percent of labour from someone else, handing it down across generations like kings?

We should each contribute and if we contribute well we live well. An end to the rentier leeches.

https://www.youtube.com/watch?v=ltz3e9LDaJ0

First 10 seconds "the game Monopoly" used as praise. Originally called "the landlord's game" inspired by the writings of Henry George as a criticism of land enclosure and money. He retires early because he has a stream of income from the labour of others. Nice!

http://www.theguardian.com/lifeandstyle/2015/apr/11/secret-h...

Re: Rich dad, poor dad – the story that formed my views on making money

#102

Post by lowmagnet »

tmorton wrote: post #3

RDPD is basically a fad diet book. There's some good advice, but it's mixed with bad advice and illegal schemes, slathered with a thick layer of inspirational bullshit. For a better personal finance book, try "I will teach you to be rich", despite the clickbait title: http://www.amazon.com/Will-Teach-You-To-Rich/dp/0761147489

Also, my interactions with Ramit (through his blog) have always been a pleasant experience.

The title and bright color was bait by his own admission. The point being he follows it up with great practical advice instead of stories and filler.

Re: Rich dad, poor dad – the story that formed my views on making money

#103

Post by tome »

branchless wrote: post #101
tome wrote: post #99

Earlier quoted context omitted.

And suppose that someone follows the teachings of Rich Dad, Poor Dad but doesn't buy land or property, instead investing in something else that generates revenue, otherwise following the book's advice to the letter. Do you still object? On what grounds? I can see you think that land tax would be fairer (I'm inclined to agree) but that's really not related to the message of the book. Are you opposed to private ownersh…

I think land prices are at the root of it all and I think for most of these advice books "assets" == "property", which includes pulling forward money creation in order (renting money from the bank) to capture labour via land monopoly. Were this to stop I think that we'd see a lot more actual productive work and a fall in the need for people to work all the time. The existing system ensures we all work all the time. I…

Firstly, I'm tentatively in agreement when it comes to taxing land.

Secondly, I don't think this really has much to do with the book unless you think the returns to capital invested in land and housing is much greater than the returns to capital invested elsewhere.

Thirdly, land is only an issue because it's currently in short supply. You can't make laptops any more once we've run out of rare earth metals, say. When that happens we might have to start taxing stocks of them, too.

Re: Rich dad, poor dad – the story that formed my views on making money

#104

Post by Kinnard »

tome wrote: post #96
Kinnard wrote: post #92

Earlier quoted context omitted.

What exactly is the risk to the Bank in lending out money they just created?

They didn't magic it out of thin air. It's a liability to them. If the loan is paid into another bank they then have to transfer central bank deposits to that other bank. If the loan is never paid back then they've lost money. Is it genuinely not obvious to you than bank deposits aren't something that banks can create and destroy on a whim?

That's actually not quite correct. The loan itself is an asset to the bank. When you sign the promissory note, they then give you a balance at the bank in the amount of the principal of the note, THAT is the liability.

The loan is the asset because that is money coming into the bank. Your deposits are liabilities because that is money you could withdraw from the bank.

So it is both a liability and an asset. They don't create it out of thin air, they create it out of ink and paper. It's a hack of the double-entry bookkeeping system.

I recommend Paul Grignon's Money As Debt: https://www.youtube.com/watch?v=jqvKjsIxT_8

Re: Rich dad, poor dad – the story that formed my views on making money

#105

Post by lawpoop »

allwein wrote: post #27
pkorzeniewski wrote: post #5

The problem with all these "how to get rich" books is that they're full of anecdotes, quotations, fictional stories, motivational bullshit etc. which make you feel good while reading them, but as soon as you put the book back on the shelf, it's all gone. It's just a temporary boost of energy and motivation, because reading requires almost no effort and more often that not it's just another way of procrastination. Ser…

> do you think the majority of rich people prepared for "getting rich" by reading hundreds of motivational and self-help books? No, I don't. But you know what they do have? They've grown up in a household and a culture that teaches them thousands of small lessons in being and staying rich. They don't have to read about it, because their parents and friends and lawyers and accountants and country club associates have…

Isn't it rather the money they have access to, from their parents, that allows them to invest, rather than spend all of their money on subsistence?

Hearing how dad weathered a hostile merger, or a neat tax shelter, doesn't mean much if you aren't in a place to have that happen to you in the first place.

Re: Rich dad, poor dad – the story that formed my views on making money

#107

Post by tome »

Kinnard wrote: post #104
tome wrote: post #96

Earlier quoted context omitted.

They didn't magic it out of thin air. It's a liability to them. If the loan is paid into another bank they then have to transfer central bank deposits to that other bank. If the loan is never paid back then they've lost money. Is it genuinely not obvious to you than bank deposits aren't something that banks can create and destroy on a whim?

That's actually not quite correct. The loan itself is an asset to the bank. When you sign the promissory note, they then give you a balance at the bank in the amount of the principal of the note, THAT is the liability. The loan is the asset because that is money coming into the bank. Your deposits are liabilities because that is money you could withdraw from the bank. So it is both a liability and an asset. They don'…

The balance in the bank, which is colloquially called a "loan", is a liability to the bank, yes.

And do you agree there is a "risk to the Bank in lending out money they just created" or is that still up for discussion?

Re: Rich dad, poor dad – the story that formed my views on making money

#109

Post by JazCE »

My g/f and her friends got suckered in by this... they were going to the seminars which then led to currency trading.

I think there might be some good tips in there, but IMO, very few people get rich from seminars, bar the seminar leader and the company behind it. but at the end of the day i'm a cynic and quite likely a wage slave for the rest of my life.

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