California Democrat Governor Gavin Newsom isn’t the brightest guy around. But he’s reached new levels of idiocy.
Because Gavin Newsom went on Fox News and got exposed as a moron because of this comment he made.
Last week, Democratic California governor Gavin Newsom gave an interview to Fox News host Sean Hannity in which he boasted that the state’s economy is the greatest in the country. However, a review of the evidence demonstrates such is not the case.
First, we’ll examine Newsom’s most prominent assertions, such as his claim that California is “No. 1 in the nation for new business starts” and his assertion that the state has one of the strongest GDP growth numbers in the world.
Newsom exploits statistical trickery by citing raw statistics rather than per capita figures when discussing the creation of new businesses. By far, the most people live in California. As a result, it will have the most nascent commercial foundations. Contrary to popular belief, California placed no. 29 in business applications per capita in 2022, according to data compiled by the U.S. Chamber of Commerce.
This method is more accurate because it takes into account the total population.
In these situations, Newsom frequently draws parallels between the Sunshine State and Big Bend Country. However, according to the data, in 2022, Florida ranked third and Texas ranked fifteen in terms of business applications per capita.
Similar nonsense may be found in his assertion that California has one of the world’s strongest GDP growth rates. To get to 7.8%, he had to rewind to 2021, when every state was experiencing a period of rapid economic expansion following the COVID pandemic.
While it’s true that California ranked second in growth that year (behind only Tennessee), a deeper dive into the numbers reveals less rosy results.
The most recent year for which data is available (2022) has California near the bottom of the list of states in terms of GDP growth. In both 2019 and 2020, California also ranked quite low. In reality, red states like Texas, Idaho, Tennessee, and Utah dominated the top of the list in each of those years.
In other words, Newsom had to choose and choose one year out of the last four to make the claim that California’s GDP growth is historic and unique, and even then, his state was not at the top.
Is Newsom correct in saying that California also ranks first in terms of the ease with which entrepreneurs may raise finance and the amount of money tourists spend in the state? Both assertions are true. There is no further information to provide regarding venture capital. It’s the main reason why so many people are drawn to California.
Contrarily, it may not be the most reliable indicator of a state’s economic vitality.
However, more background information is required concerning tourism. It is important to examine tourism data in the same way that we do business startup data: in relation to the size of the state. As Newsom pointed out, California’s population makes it the most populous state in the country, giving it an automatic edge in quantitative comparisons.
However, when we examine trends, we notice something different. According to the latest numbers from the U.S. Travel Association, tourism spending in California has dropped by 12% since 2019. The deterioration in this state is unprecedented. However, Florida’s tourism sector has expanded by 9%.
The California economy is not in chaos yet, but neither is it fair to call it the strongest in the country. The facts clearly reveal that residents of California are leaving the state in droves. And there’s a good explanation for why.
For the first time in recorded U.S. history, the state of California has seen a shocking net drop in population. Millions of people are fleeing the state for more palatable economic situations in other states. Who wants to pay $4,000 in rent each month for the smallest apartment?
This population decrease certainly doesn’t bode well for the future economy of California. California’s economy isn’t toast, as we’ve seen, but it’s not bright like Newsom wants to claim.
Some people thought Newsom “destroyed” Hannity because of how assured and well-informed he came across in the conversation. But that doesn’t prove his claims are accurate.
Newsom’s speech scores highly on flair but poorly on accuracy, according to what we have seen upon closer inspection of the facts. We would give Newsom a dunce hat for these comments if we were in that interview with him.
Stay tuned to Prudent Politics.