California's economy under Newsom

May 21, 2026

A Republican challenger frames California as a state being destroyed by overregulation, mirroring the UK's decline — bad news for residents, especially in farming, energy, and housing.

  • The candidate says he would fire officials at the Cal Gem agency on day one to restart oil production, since permits for even routine well maintenance are being blocked.
  • California's claim to being the world's fourth-largest economy hides the reality: highest poverty rate in the country (tied with Louisiana), highest state unemployment, and 28% of all US homelessness.
  • Almost no net private-sector jobs have been created since the pandemic — growth is mostly government and healthcare hiring.
  • Farmers are being starved of water and energy producers are being blocked, even though the state has abundant natural resources.
  • California is following the UK's path: bloated rules, slow permits, and an inability to build housing or infrastructure.

Outlook: Without major regulatory rollback, California's poverty, joblessness, and housing problems are expected to keep worsening.

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