# The Book on (and of) Newsom; A Bedeviled City of Angels | Hoover Institution Source: https://www.youtube.com/watch?v=gi7AoD445WI Recap page: https://rapidrecap.app/video/gi7AoD445WI Generated: 2026-02-20T18:35:31.842+00:00 --- ## Quick Overview California Governor Gavin Newsom faces scrutiny over the state's poor economic conditions, including job losses, high energy costs, and the mounting deficits of the High-Speed Rail project, contrasting sharply with his national book tour promoting his memoir "Young Man in a Hurry" and national presidential aspirations. Meanwhile, Los Angeles contends with political turmoil, including a mayoral race plot twist and the resignation call for the LA 2028 Olympics chief due to Epstein scandal ties, further complicating the state's image. **Key Points:** - Governor Newsom is promoting his memoir, "Young Man in a Hurry," while California faces a loss of over 100,000 private sector jobs between late 2022 and mid-2024, high electricity prices, and the highest gasoline prices in the country. - Newsom's handling of wealth taxes is complicated by pressure from the progressive wing of the Democratic party, exemplified by Bernie Sanders and AOC, while billionaires like Peter Teal are moving residency out of state. - California's gasoline dependency is severe, with the state importing about 64% of its oil needs in 2024, up from 6% in 1982, creating a national security risk due to reliance on foreign sources for the specialized low-carbon blend. - The High-Speed Rail (HSR) project remains problematic, with costs escalating to potentially $135 billion for the total system, and the Bakersfield to Merced segment estimated to cost $35 billion and potentially not open until 2035, despite Newsom's 2019 commitment to freeze further expansion until funding was stable. - The state budget has seen a 72% increase under Newsom, from Jerry Brown's last budget of $202 billion to Newsom's proposed $348 billion, which experts suggest is fiscally unsustainable, especially given ongoing deficits. - The average state worker compensation package, including benefits, is estimated to be around $190,000 when adjusted for inflation since 2019, contributing to massive unfunded pension liabilities that Newsom has not addressed. - Los Angeles Mayor Karen Bass faces calls for LA 2028 Olympics chief Casey Wasserman to resign over alleged ties to Jeffrey Epstein via emails with Ghislaine Maxwell, and Bass herself faces scrutiny over handling the Palisades fire damage control and losing text messages. **Context:** The discussion centers on the state of California politics and policy in February 2026, featuring Hoover Institution fellows Bill Whan and Leo Haneian, moderated by Jonathan Mortis. The conversation contrasts Governor Gavin Newsom's focus on national exposure via a book tour for his memoir with critical domestic issues, including the state's economic decline, energy supply vulnerability, the troubled High-Speed Rail project, and concurrent political crises in Los Angeles concerning the upcoming Olympics and mayoral leadership. ## Detailed Analysis The analysis concludes that California faces severe economic headwinds that undermine Governor Newsom's national ambitions, citing significant private sector job losses, extremely high gasoline prices (which visitors immediately notice), and the state's increasing reliance on imported oil, reaching 64% of needs in 2024, creating a national security vulnerability due to specialized blending requirements. The High-Speed Rail project is deemed a fiscal disaster; its initial projected cost and timeline are vastly exceeded, with the Bakersfield to Merced segment now costing up to $35 billion and facing operational subsidy issues, while Newsom's proposed $348 billion budget represents a 72% increase over Jerry Brown's final budget, fueling concerns about fiscal irresponsibility, especially with massive unfunded pension liabilities estimated to push average state worker compensation near $190,000 when adjusted for inflation. Furthermore, Newsom's memoir strategy aims to counter perceptions of privilege by detailing a complicated childhood, but his polarizing stance against Donald Trump may limit persuadable national voters, while opponents will use state failures like HSR and high costs as fodder. In Los Angeles, Mayor Karen Bass is embroiled in controversy regarding the 2028 Olympics leadership (Wasserman's Epstein ties) and her own response to the Palisades fire, leading to lawsuits and scrutiny over lost communications, further signaling widespread governance issues across the state. ### Newsom's National Ambitions vs. State Reality - Promoting 'Young Man in a Hurry' - Facing criticism for traveling while California suffers job losses and high gas prices - Newsom may try to deflect on state wealth taxes by leaving the door open for federal action ### California Economic Distress Indicators - Over 100,000 private sector jobs lost between late 2022 and mid-2024 - Gasoline prices are the highest in the country, sometimes exceeding $5.25 per gallon - State and local tax revenue per household exceeds $50,000, contradicting Newsom's claims of being a low-tax state ### Energy Supply Chain Vulnerability - California imports nearly two-thirds of its gasoline needs, risking national security - Refinery closures, like Valero's, reduce supply and force expensive imports from distant locations like the Bahamas ### High-Speed Rail Cost Overruns and Delays - The project's cost estimate is now potentially $135 billion, far exceeding initial projections - Bakersfield to Merced segment may not open until 2035, 27 years after initial projections - Newsom's decision to focus on the segment in 2019, rather than freezing the project, is called a 'major strategic mistake' ### Fiscal Irresponsibility and Debt - Newsom's proposed budget of $348 billion is a 72% increase over Jerry Brown's last budget, deemed fiscally unsustainable - State government finances are highly dependent on volatile revenue streams like capital gains from the AI boom, lacking a buffer for downturns ### Public Sector Compensation and Pensions - Average state worker compensation, including benefits, is estimated near $190,000 when adjusted for inflation since 2019 - Unfunded pension liabilities pose a massive debt problem for future successors, as Jerry Brown's attempts at reform stalled ### Los Angeles Political Turmoil - Mayoral race sees Rick Caruso drop out, leaving progressive Nathia Raman as a leading contender - Olympics chief Casey Wasserman faces calls for resignation over email ties to Jeffrey Epstein and Ghislaine Maxwell - Mayor Karen Bass is sued over the Palisades fire response, with allegations of negligence and lost internal communications