(Daily Mail) The financial guru who correctly predicted the disastrous Lehman Brothers collapse in 2008 offered a dismal outlook on the future of California.
Robert Kiyosaki, the author of Rich Dad Poor Dad, is known for making hyperbolic predictions about the US economy – and this time he has a grim prognosis for the most populous state in the nation.
‘The problem is California is going broke,’ he wrote on X. ‘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 believes even Americans who don’t live in the Golden State should care about its prospects because it’s a bell weather for the rest of the country.
‘Since California is a Bell Weather state and is going broke, which states will follow?’ he asked.
So, is California actually going broke?
Robert Kiyosaki, the Rich Dad Poor Dad author, is predicting calamity for California and suggested that people should move away
Despite being the fifth largest economy in world according to Governor Gavin Newsom – a fact that’s been disputed in the past – California is indeed staring down a huge hole in its budget.
Back in December 2023, the state’s Legislative Analyst’s Office reported a massive deficit of $68 billion because of a ‘severe revenue decline’ in the 2022-2023 fiscal year.
By May 2024, a month before state lawmakers had to pass a budget, Newsom announced the state was still $26.7 billion in the red, though the true figure was closer to $45 billion, the Associated Press reported.
The official budget was passed at the end of June, which included $16 billion in spending cuts.
Most of the cuts were to the exact things Kiyosaki warned about, though its important to note that he made his predictions over a month after the state released its budget.
