|Cover of Robert T. Kiyosaki|
However, when a Google search brought me to an article he wrote about Ponzi schemes, my interest is piqued. I've studied MLM, Pseudo-MLM scams, and Ponzi schemes for several years. I wouldn't call myself an expert, but I do a lot of research before expressing my opinion.
Is Robert Kiyosaki's article accurate and useful?
That's a resounding no. Kiyosaki has absolutely NO IDEA what is a Ponzi scheme, even though he quoted the Wikipedia definition. Kiyosaki went on blasting various "legal Ponzi schemes", such as Social Security, Pension, and so on, as well as made blanket accusations and declarations.
Kiyosaki called social security a "legal Ponzi", when leading economists, esp. one that literally wrote the book on Charles Ponzi, explained why that is wrong.
Kiyosaki called the stock market a "legal Ponzi" as well. Kiyosaki is well known for his aversion to stock market and preference for real estate and precious metals and indeed, has several books on the matters. Rich Dad's Prophecy basically claims that stock market will crash hard "soon". Even his game, "Cashflow", reflects this heavy bias.
But why does Kiyosaki claimed that stock market is a Ponzi? Because the poor people feed money from the bottom and ended up in the rich people on the top. However, that does not describe a Ponzi scheme at all. That describes a pyramid scheme. Ponzi scheme is a scheme where you paid early joiners with money from latecomers. That does NOT describe the stock market except in certain "pump and dump" cases, and pump and dump is already fraudulent.