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Treasury Secretary Scott Bessent launched a blistering attack on California Governor Gavin Newsom at the World Economic Forum in Davos, Switzerland on Wednesday, criticizing the governor’s economic policies while both officials attended the elite global gathering.
In unusually harsh language for a Cabinet member, Bessent called Newsom “economically illiterate” and accused him of neglecting California’s mounting fiscal challenges to attend the prestigious international conference.
“I was told he was asked to give a speech on his signature policies, but he’s not speaking because what have his economic policies brought? Outward migration from California, a gigantic budget deficit, the largest homeless population in America, and the poor folks in the Palisades who had their homes burned down,” Bessent said during his remarks.
The Treasury Secretary further escalated his criticism, stating that Newsom was “hobnobbing with the global elite while his California citizens are still homeless,” adding that the governor was “too smug, too self-absorbed, and too economically illiterate to know anything.”
The verbal sparring comes as California faces significant economic headwinds. The state is currently grappling with a projected $68 billion budget deficit for the upcoming fiscal year, representing one of the largest shortfalls in its history. This deficit has forced discussions about potential cuts to education, healthcare, and social services.
California also continues to struggle with a persistent housing crisis. Despite various initiatives from the Newsom administration, housing affordability remains a critical issue, with the median home price in the state standing at nearly triple the national average. The state’s homelessness crisis has also shown little improvement, with more than 180,000 people experiencing homelessness on any given night, according to recent estimates.
Bessent’s remarks also included personal jabs, responding to what he characterized as Newsom calling him a “smug man.” The Treasury Secretary likened the governor to “Patrick Bateman meets Sparkle Beach Ken,” referencing the fictional serial killer from “American Psycho” and a character from the “Barbie” franchise.
“[He] may be the only Californian who knows less about economics than Kamala Harris,” Bessent added, bringing Vice President Harris into the fray. He also referenced the governor’s controversial dinner at the French Laundry restaurant during COVID-19 restrictions, saying, “when he was having people arrested for going to church, he was having $1,000 a night meals.”
The Cabinet official also indicated that the Trump administration would address what he termed “waste, fraud and abuse” in California, though he did not provide specific details on what actions might be taken.
Newsom, who was also in Davos for the summit, did not directly respond to Bessent’s economic critiques. Instead, he focused his public comments on President Donald Trump, criticizing the president’s diplomatic approach.
“America’s allies and business leaders need to understand this: There’s no diplomacy with Donald Trump. Get off your knees and grow a spine,” Newsom wrote on the social media platform X.
In remarks to reporters at the forum, Newsom further characterized Trump as a “T. rex,” saying, “You mate with him or he devours you. One or the other.” He called for more backbone in dealing with the administration, stating, “It’s time to stand tall and firm. Have a backbone. I can’t take this complicity — people rolling over.”
The public dispute highlights the growing tension between the federal administration and California’s leadership, potentially foreshadowing increased friction over economic policies, federal funding, and state autonomy in the coming months.
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11 Comments
As someone with an interest in California’s economic outlook, I find this dispute concerning. Regardless of one’s political leanings, it’s important that policymakers engage in substantive, fact-based dialogue. Resorting to personal insults does little to address the state’s real challenges.
Interesting to see the Treasury Secretary so forcefully criticize Governor Newsom. While Newsom’s policies may be controversial, this level of personal attack seems rather harsh. I wonder if there’s more to this political feud than meets the eye.
I agree, the rhetoric seems quite strong. These high-level political spats often have deeper undercurrents we don’t see. It will be worth following how this back-and-forth develops.
The critique of Newsom’s attendance at Davos is an interesting one. While the optics may not be great, it’s important to understand the full context and purpose of such global gatherings. I hope both sides can find a way to have a more constructive exchange.
Agreed. Attending international conferences is often part of a governor’s duties, even if the timing seems questionable. Painting it as mere ‘hobnobbing’ seems overly partisan. A more nuanced discussion would be helpful.
This clash between federal and state officials is certainly noteworthy. While I don’t have a strong opinion on the merits of Newsom’s policies, I worry that such heated rhetoric could further polarize the political landscape in California. Cooler heads should prevail.
The comparison to ‘Patrick Bateman’ is certainly an eye-catching one. While Newsom’s governance style may rub some the wrong way, resorting to such provocative language could undermine the substance of Bessent’s critique. I’d be curious to hear Newsom’s response.
Agreed, the ‘Beach Ken’ jab also seems unnecessarily personal. These types of public feuds often generate more heat than light. It would be better to focus the debate on the actual policy merits and economic performance.
While I don’t have a strong partisan affiliation, I believe it’s important for our elected leaders to engage in good-faith debates about policy rather than personal attacks. Newsom and Bessent should focus on addressing California’s real economic challenges in a constructive manner.
As someone who follows commodity markets, I’m curious to see how this political drama might impact California’s energy and mining sectors. Regardless of one’s views, stable policymaking is crucial for attracting investment and supporting economic growth. I hope both sides can find a way to work together constructively.
That’s a good point. Political instability and infighting can create uncertainty that hampers business investment and economic performance. Maintaining a predictable policy environment should be a priority for state and federal officials.