California, once hailed as the land of opportunity and innovation, is now facing what some experts are calling an impending financial disaster. Robert Kiyosaki, co-founder of The Rich Dad Company and author of the best-selling book Rich Dad Poor Dad, recently voiced his concerns about the Golden State’s future during an appearance on Fox Business’s The Big Money Show. Hosted by Brian Brenberg, Jackie DeAngelis, and Taylor Riggs, the discussion centered on California’s financial mismanagement, its impact on the broader U.S. economy, and the importance of entrepreneurship in an era of rapid technological change.
California’s Financial Mismanagement
Kiyosaki didn’t mince words when discussing California’s current state of affairs. He pointed out that even one of the world’s most successful entrepreneurs, Elon Musk, has decided to leave the state. “What does that tell you?” Kiyosaki asked, suggesting that Musk’s departure is a glaring indicator of the state’s deeper issues. He described California as a “bellwether” for the rest of the country, warning that the exodus of businesses and residents from the state could signal broader economic problems.
The Broader Economic Context
Kiyosaki didn’t stop at California. He expanded his analysis to the national level, expressing concerns about the United States as a whole. He noted that the U.S. is now the biggest debtor nation in the world, which, combined with California’s financial woes, paints a troubling picture for the future. “What is going to happen?” he asked, reflecting the uncertainty many feel about the direction in which the country is headed. Kiyosaki’s concerns extend beyond just state-level issues; he sees them as part of a larger, more systemic problem affecting the entire nation.
The Role of Leadership
The discussion also touched on the political landscape, particularly with Vice President Kamala Harris, a former California senator, running for president. Jackie DeAngelis raised the question of what the future holds if leaders like Harris, who represent states with policies similar to California’s, rise to national power. Kiyosaki’s response was blunt: “Biden and Kamala are the gift that keeps on giving.” He criticized their leadership and warned that their policies could exacerbate the current economic issues, potentially leading to even higher unemployment rates.
The Future of Entrepreneurship
Despite the grim outlook for California and the broader U.S. economy, Kiyosaki remains optimistic about the potential for entrepreneurship. In response to DeAngelis’s question about whether the U.S. is still the best place for entrepreneurship, Kiyosaki offered a resounding yes – but with a caveat. He emphasized the importance of adapting to new economic realities, particularly the rise of artificial intelligence (A.I.). Kiyosaki pointed out that traditional advice, like going back to school to get a job, might not be the best course of action in today’s rapidly changing world.
The Impact of A.I. on Jobs
Kiyosaki expressed significant concern about the impact of A.I. on the job market. He highlighted that a large portion of jobs in America, especially those involving driving, could soon be at risk due to automation. “In my neighborhood, you’re driving around and there’s no driver in it,” he said, referencing the rise of autonomous vehicles. With the potential for A.I. to displace 30% of jobs in America, Kiyosaki advised viewers to consider starting small businesses or side hustles as a way to secure their financial future.
The Case for Small Business
Kiyosaki’s advice is rooted in the belief that entrepreneurship offers the best chance for individuals to thrive in an uncertain economic environment. He encouraged people to start small, learn about being an entrepreneur, and develop the skills necessary to navigate the complexities of the modern economy. “I think it’s the safest thing that you can do right now,” he said, underscoring the importance of self-reliance and adaptability in a rapidly changing world.
A State on the Verge of Bankruptcy?
Throughout the discussion, Kiyosaki repeatedly returned to the idea that California is on the verge of financial collapse. He warned that if the state continues on its current path, it could bring other states down with it. The implications of such a collapse would be far-reaching, potentially triggering a broader economic downturn across the United States. Kiyosaki’s stark assessment is a wake-up call for policymakers and residents alike to address the underlying issues before it’s too late.
A Call to Action
Robert Kiyosaki’s predictions about California and the U.S. economy are dire, but they also serve as a call to action. His emphasis on entrepreneurship and adaptability offers a path forward for those willing to embrace change and take control of their financial future. As California faces what could be its most significant financial challenge yet, Kiyosaki’s words are a reminder that individuals and businesses must remain vigilant and proactive in the face of economic uncertainty.
“Money Is Not Meant to Control People”
People in the comments shared their thoughts: “Money is not meant to control people, rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful place..”
One commenter said: “Gavin Newsom isn’t done yet. I’m sure he can ruin it for the rest of us. Another gasoline tax and a cat relocation program.”
Another person added: “From gold miners and pioneers to what we have today. Do you know what happened to California? The voters got really, really STUPID!”
The Urgency of Economic Reform
Kiyosaki’s analysis highlights the urgency of addressing both state and national economic issues before they spiral out of control. California’s situation should serve as a cautionary tale for other states and the federal government. If the underlying problems of debt, mismanagement, and outdated policies are not addressed, the consequences could be devastating. Kiyosaki’s call for entrepreneurship is not just about individual success; it’s about fostering a more resilient and innovative economy that can withstand the challenges of the future.
The Consequences of California’s Bankruptcy
What are your thoughts? What are the potential long-term consequences for the U.S. economy if California, as one of the largest state economies, faces bankruptcy? How might the exodus of businesses and residents from California impact other states, both economically and politically? In an era of rapid technological change, particularly with the rise of A.I., what steps can individuals take to ensure their economic security?
Find out more by watching the full video on Fox Business’ YouTube channel here.
