California Governor Newsom Shifts Towards Populism

California Governor Gavin Newsom is reinventing himself into a populist figure as he looks toward a potential presidential run in 2028. His focus seems to be on appealing to the stressed white-collar middle class, which is currently facing job losses and the rise of artificial intelligence.

During a meeting on May 19 with the Center for American Progress, an immigration advocacy organization, Newsom commented on political figures like Donald Trump and Bernie Sanders, saying, “There’s a reason Donald Trump is president, and there’s a reason Bernie is, too.” It’s clear he recognizes the shared sentiments that have fueled their support.

“The pitchforks, yes, they’re here. They’re not just coming,” he remarked, hinting at a wave of public discontent. Many see Newsom as gearing up for a presidential bid with strong backing from California’s tech sector.

Addressing economic fears, he acknowledged the public’s anxiety regarding ongoing systemic issues:

The system is broken. It’s broken, folks. A small fraction of people holds most of the wealth—10% own two-thirds, and they control a staggering 93% of the stock market’s value. For the first time, a 30-year-old woman is doing worse than her father. It’s alarming…

Populism and authoritarianism are results of ineffective trade deals, and we haven’t seen anything yet. Workers across the board, from blue-collar to young white-collar professionals in places like San Francisco, feel overlooked in their job searches. There’s a growing coalition here.

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I’m not against others’ success, I admire it. But you can’t be supportive of work and against business entirely. However, business can’t succeed in a failing system. For instance, if you face a serious health issue, good luck if you need to crowdsource your medical bills. A friend of mine reached out for help through GoFundMe just yesterday. This guy juggles a couple of jobs, and still… it’s bewildering.

“We’re witnessing AI changes unfolding right now, yet we still aren’t discussing it,” he highlighted.

Meanwhile, Vice President J.D. Vance is advocating for significant shifts in the nation’s economic and immigration policies, set to begin around May 2025, amidst resistance from investors.

Interestingly, Newsom has avoided tackling the contentious issue of white-collar immigration, which has deterred many Americans from thriving in lucrative positions. He’s also steered clear of how both legal and illegal immigration types impact California’s housing prices and economic equality.

Reports indicate that approximately 8 million foreign workers fill about 22% of the nation’s white-collar science and technology jobs, which includes a considerable number of high-tech positions.

Federal immigration protocols enable business owners to discreetly fill white-collar roles in America with immigrants, which can drive outsourcing and change the dynamics of pay for many American workers.

Newsom’s office condemned President Trump’s 2017 cuts to white-collar work visas, asserting that such measures have harmed California’s economy. He remarked:

President Trump’s immigration policies have had detrimental effects, reducing student and H-1B visas, which has worsened labor shortages in essential sectors.

Newsom has proposed sweeping changes to workplace regulations and aims for a fairer distribution of wealth in the stock market.

I’m contemplating universal basic capital—not income—, public equity funds, and dividends. I’m thinking about implementing a safety net similar to what’s done in Denmark, where there’s a high wage replacement rate after layoffs. I’ve been considering these aspects for two years… We need a system to give people the right to transition amid layoffs. It’s more than just retirement announcements via LinkedIn. My perspective on these matters has evolved significantly.

“With AI’s rise, companies are poised to profit immensely, and we can’t maintain a payroll tax that penalizes jobs while subsidizing automation,” he argued. He insisted that without economic democratization, the health of democracy is at risk.

With respect, he told JD Vance, “You don’t have it.”