Page 83 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

WHY WE WANT You To BE RICH I 77

problems because our economy was growing. As long as we were
growing, other nations and lenders were very willing to lend us money
... as much as we wanted. The problem with higher energy prices is that
the higher prices cause the economy to contract, not expand. If and
when the economy begins to contract, the people we have been
borrowing from may be hesitant to accept more of our debt. If this
happens, the economic problems cannot be solved by bigger promises
and more debt. The house ofcards may come down.

7. Tax breaks for the rich: Most ofus know about the Golden Rule.
Not the Golden Rule that reminds us about doing unto others. The
Golden Rule I am talking about is the one that goes, "The person who
has the gold makes the rules."It isa tragedy that in America the poor and
middle class have lost their representation in government. Today, the
rich make the rules, which is why the rich are getting richer.

On May 11, 2006, ABC News ran the story about the latest tax cuts.
Quoting from the story:

~.,'
f "The tax policy center, a Washington think tank, discovered that
!
the top 0.1 percent oftax payers - the people who make more than
• 1.8 million - would get back $82,000. Middle-income Americans
making between $27,000 and $47,000 would get $20."

Voodoo Economics Or The Trickle-Down Effect

One monetary theory encourages tax lawsthat favor the rich - the idea
being, ifthe rich had more money, they would invest it, thus creating more
jobs. Money would trickle down to the poor and middle class.This theory
issometimes called "voodoo economics" or the "trickle-down effect." While
it sounds good in theory, and while some money does trickle down, the net
... result is the money stays in the hands ofthe rich.
~. In many cases, asset prices increase because the rich have more money.

Why do asset prices increase? Asset prices increase because that is what the
rich buy with their money - assets, which is one ofthe reasons why they

:..:-_-
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