Treasury Secretary Criticizes California Governor at World Economic Forum

Treasury Secretary Scott Bessent recently took aim at California Governor Gavin Newsom, labeling him “economically illiterate.” Bessent accused Newsom of focusing more on mingling with global elites than addressing pressing issues like California’s financial troubles, housing crisis, and the homelessness situation.

During his remarks at the World Economic Forum in Davos, Switzerland, Bessent criticized Newsom’s overall economic performance and leadership. He mentioned that while Newsom was set to discuss his key policies, what often gets overlooked are their real-world consequences: Californian residents moving out, significant budget deficits, and a burgeoning homeless population. Not to mention, he pointed out, the unfortunate plight of people in the Palisades area, some of whom lost their homes to fire.

“While he’s engaging with the elite,” Bessent remarked, “Californians are still facing homelessness. It’s quite disgraceful. He seems too wrapped up in himself, maybe even a little too oblivious to understand these issues.” This commentary, while harsh, reflects a certain sentiment shared by many who feel neglected by political leaders.

Bessent responded to Newsom’s self-description as a “self-righteous man,” jokingly referencing a fictional character from “American Psycho” and a well-known doll. He pointed out that Newsom seems disconnected from the broader realities of California life, even suggesting that he might not grasp economic concepts as well as some others in leadership, highlighting, somewhat humorously, that even Kamala Harris might know better.

Amid heated exchanges, Bessent also hinted at plans to tackle “waste, fraud, and abuse” within the state, suggesting there are systemic issues that need urgent attention.

On the other hand, Newsom, attending the conference, wasn’t one to back down. He shifted focus to President Trump’s controversial remarks about potentially acquiring Greenland and emphasized that clear diplomacy is lacking under Trump’s administration. In a spirited statement, he characterized Trump as a “tyrannosaurus,” asserting that collaboration is critical but shouldn’t come at the cost of integrity.

“It’s time for leaders to stand firm,” he said, emphasizing the need for a backbone in dealing with difficult political landscapes.