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Scott Bessent slams Newsom's economic policies at Davos

Jan 21, 2026, 12:46 PM20
(Update: Jan 23, 2026, 7:00 AM)
40th governor of California
state of the United States of America
Swiss nonprofit foundation

Scott Bessent slams Newsom's economic policies at Davos

  • Treasury Secretary Scott Bessent criticized California Governor Gavin Newsom's economic policies at the World Economic Forum.
  • Bessent accused Newsom of being out of touch with California's pressing issues like budget deficits and homelessness.
  • The comments reflect growing discontent with Newsom’s leadership and raise questions about his economic strategies.
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At the World Economic Forum in Davos, Switzerland, Treasury Secretary Scott Bessent harshly criticized California Governor Gavin Newsom for his economic management. In his remarks, Bessent labeled Newsom as 'economically illiterate,' pointing out the severe consequences of his policies, including California's significant budget deficit and the highest homeless population in the United States. He expressed frustration that Newsom was not providing a speech on his claimed signature policies, given the ongoing crises in the state such as outward migration and homelessness. Bessent suggested that Newsom is more focused on elite gatherings than addressing the pressing issues facing California's citizens. The Treasury Secretary further commented on what he sees as Newsom's misguided priorities, recalling notable past incidents such as Newsom's lavish dining experiences at the French Laundry during COVID-19 lockdowns while the general public faced harsh restrictions. Bessent's remarks highlighted the contrasting realities between the privileged elite attending gatherings like Davos and the struggling constituents within California. He also addressed California's ongoing challenges, stating that further efforts would be undertaken to tackle 'waste, fraud, and abuse' in state governance. In a broader sense, Bessent's statements reflect a significant critique of the Democratic leadership in California and a call to action for the state's highest office. His comments align with a prevailing sentiment among critics who argue that Newsom's priorities are disconnected from the plight of ordinary Californians. As public perception continues to evolve regarding leadership effectiveness, Bessent's outspoken critique serves as a notable moment of contention at an internationally recognized platform. This situation contributes to the ongoing dialogue about economic policies and state governance within the context of national politics. The exchange not only emphasizes the rifts within political leadership in California but also places scrutiny on Newsom’s capacity to lead effectively amid growing economic challenges. It remains to be seen how these criticisms will shape public opinion or policy changes in California moving forward.

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