California Faces Significant Economic Issues, Avoids Blaming Democrats for Cost Problems

Swalwell Addresses California Challenges in CNN Interview

During a recent interview on CNN’s “The Story Is,” California gubernatorial candidate Rep. Eric Swalwell (D-Calif.) acknowledged that California is facing issues related to costs, unemployment, and business development. However, he stopped short of placing blame on Democrats for inflation.

Host Erex Michaelson brought up the high cost of living in California, noting, “According to AAA, California has the highest housing costs, the highest gas prices, and the most homelessness. We know that.” He continued to highlight the state’s economic struggles, including its high unemployment rate and poor small business startup numbers.

In response, Swalwell emphasized, “As a nation-state, we want to be an emerging market again. We will offer a tax exemption for the first three years to all small businesses. Forget about taxes. Our goal is to create jobs and boost intercompany revenue for existing small businesses while encouraging new ventures.” He expressed a commitment to fostering a business-friendly environment, particularly for small businesses and entrepreneurs.

Michelson pressed further, pointing out that the state’s leadership is entirely Democratic, including a Democratic governor and two Democratic senators. He questioned whether Democrats share some responsibility for the high costs in California.

Swalwell replied, “We’re experiencing inflation nationwide,” but Michelson interjected, “We had these issues before any inflation problems arose.”

Swalwell responded, “That’s true. But I’m focused on the future as I run for governor next year.”

He outlined plans for addressing the state’s housing crisis, pledging to declare a state of housing emergency on his first day in office and setting a 90-day deadline for agencies to make decisions on pending housing projects. He also spoke about the need for long-term reform of CEQA environmental regulations, suggesting temporary suspensions of some rules to expedite development. Additionally, he stated he wants California to be a more attractive place for TV and film production.

Further, Swalwell indicated he does not want refineries to leave California and supports a comprehensive energy policy. He also mentioned the importance of expanding public-private partnerships to address homelessness and expressed a desire to modernize the DMV.