The financial expert who accurately foretold the catastrophic collapse of Lehman Brothers in 2008 has now provided a pessimistic assessment of California’s future.
Robert Kiyosaki, the author of Rich Dad Poor Dad, is renowned for his exaggerated predictions regarding the US economy. This time, he has a bleak outlook for the most populous state in the country.
He is of the opinion that the prospects of the Golden State should be of interest to all Americans, regardless of their residence, as it serves as a barometer for the nation as a whole.
“The problem is California is going broke. California will begin raising taxes and cutting subsidies to the poor, to prisons, environmental problems, and teachers unions. That means crime will spread as police will be cut.” he wrote on the X platform.
‘Since California is a Bell Weather state and is going broke, which states will follow?’ he continued.
Governor Gavin Newsom has claimed that California is the fifth greatest economy in the world, a claim that has been contested in the past.
However, the state is currently facing a significant budget deficit.
A ‘severe revenue decline’ in the 2022-2023 fiscal year resulted in an enormous deficit of $68 billion, as reported by the state’s Legislative Analyst’s Office in December 2023.
Newsom announced the state was still $26.7 billion in the red by May 2024, a month before state lawmakers were required to adopt a budget.
However, the actual figure was closer to $45 billion.
At the conclusion of June, the official budget was adopted, which comprised $16 billion in forced expenditure reductions.
Kiyosaki declared that he had relocated from California as a result of this and other factors. He now resides in Scottsdale, Arizona, a much more conservative state.
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