There’s inflation – and then there’s Gavin Newsom’s grade inflation

To many Californians, that sounds like grade inflation.

Nearly onein five Californians are considered poor –– thehighest ratein the country –– andgiving Newsom high markssimply ignores theobvious.

AlengthyBloombergarticlemakesthe astonishing claim that California’s “slick” governor is “an economic maestro,” arguing that the economy has grown 40% since Newsom took office –– conveniently ignoring that the overall US economy grew faster.

Democrats running for governor in California have said in recent debates that Gavin Newsom deserves high grades for his performance –– mostly B’s, and even A’s. REUTERS

Newsom’s government-funded digital media team celebrated with a series offunny-to-them partisan posts.

“America’s economic dominance is because of California . . . you’re welcome, USA,” they posted on X.

Sounds too good to be true? That’sbecause it is.

Newsom’s economic agendadoesn’tdeserve an “A” grade –– or even a gentleman’s “C.”

As a new Pacific Research Institutereportshows, Newsom’s “California Way” earns failing grades for job growth, cost of living, and outmigration.

To be fair, Newsomdoesn’tearn an “F,” because California is experiencing job growth. The problem iswe’renot growing as we should –– and Newsom’s policy agenda is thereason why.

As a new Pacific Research Institute report shows, Newsom’s “California Way” earns failing grades for job growth, cost of living, and outmigration. AFP via Getty Images

While California’s many natural advantages and the creative, innovative spirit of its people are still there, our once-golden state is sadly not owning the 2020s.

California justhasn’tbeen leading the nation in job creation, as the state did before Newsom became governor.

Looking at federal government data, California’s job growth outpaced the rest of the nation during thedot.comrecovery from 2001-07, and in the post-housing bust recovery during much of the 2010s.

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During Newsom’s governorship, however, non-farm job growth in California has significantly underperformed the rest of the nation. Despite January’s preliminary data showing strong employment growth, California only saw about half the job growth the rest of the country experienced between February 2020 and December 2025.

Looking at private sector jobs –– excluding the social service “jobs” that have recently drawn scrutiny for potential fraud –– California today hasfewerprivate sectorjobs today than in 2020.

Worse, key industries such as the tech and financial services sectors are either stagnant or declining.

Getty Images

Had California’s job growth matched national job growth rates during that five-year period, the state would have 1 million more jobs today.

Californiansaren’tthanking Newsom for that economic record.

Yes, our share of the national economy did reach a record high of about 14.5% following the COVID-19 recession in 2021. However, California’s share has fallen in recent years to about 13.8%, and today is stuck in neutral.

So much for economic dominance.

Newsomargues on Xthat “the ‘exodus’ narrative is nowhere to be seen” in his administration’s economic record.

ButU. S. Census data confirmsmore and moreCalifornians are choosing to leave the state every year –– and domestic outmigration has accelerated since 2021.

Californians aren’t thanking Newsom for that economic record. Youtube/@@cagovernor

They are fleeing because under Newsom, poor policies –– including high taxes, burdensome housing regulations, and unaffordable energy mandates –– have turned our state’s income advantage into a deficit.

Californians do make more money than folks living in other states. But add housing, energy costs, and taxes to the bottomline,and the California earning advantage disappears.

Astonishingly, you can take a 35% pay cut compared with whatyou’dearn in California and still have the same purchasing power elsewhere. It’sno wonder so many are leaving, even if theyhave totake a pay cut to do so.

Despite what Newsomposted on X,it’sclear California’s “doom loop”isn’ta fantasy after all.

Anyone hoping for relief and a dose of reality once Newsom leaves office might be disappointed if one of the leading Democrats is elected.

At a recent gubernatorial debate, for example, the candidates were asked to grade him onhomelessness,and the answers were preposterous.

During his time in office, homelessness has increased 24%, andNewsom spent more than$37 billionto makethathappen.

Apparently, that’s enough to earn a“B” from former Congresswoman Katie Porter, and even an “A for effort” from former U. S. Health and Human Services Secretary Xavier Becerra. Participation trophies all around!

Californians would be much better served if state leaders like Newsom took an honest look at economic policies that are increasing the cost of living and hurting real people –– and embraced reforms to bring back jobs and investment.

It certainly would be more beneficial to the lives of people struggling to make ends meet than just another unwarranted boastful social media post from California’s governor.

Kerry Jackson is the William Clement fellow in California reform at the Pacific Research Institute, where Wayne Winegarden is a senior fellow in business and economics.