Despite running California’s budget tank on empty for years, Gov. Gavin Newsom is keeping his foot on the pedal and promising taxpayer-funded health insurance to both legal and illegal residents. But as his policies destroy the economy, the state is also running out of taxpayers, creating a self-perpetuating crisis that is devastating the people he purports to be helping.
An Unsustainable Business Model
After admitting just last week that he borrowed $3.4 billion in taxpayers’ money from the general fund to pay for his extension of Medicaid to illegal residents, Newsom now wants to borrow an additional $2.8 billion to pay for the project. After this lump payment, it still costs an additional $8.5 billion annually.
Not only does he need money that does not exist, Newsom is trying to take it from non-existent taxpayers.
A third of the state’s population, or roughly 12 million residents, are on Medicaid, not funding it. Many of the taxpayers who still remain are in the process of fleeing, as more Medicaid-eligible individuals move in to take their place. Between 2020 and 2021, an estimated 716,948 residents left California, whereas only 385,188 relocated there. The people leaving also had higher average incomes than the ones entering, leaving the Golden State with a net loss of $47 billion in tax revenue over the two years.
Despite California’s healthcare spending exceeding the national average per capita (for the first time since 1991) at the start of the COVID-19 pandemic in 2020, Newsom gave $50,000 in taxpayers’ money to 30 residents for getting the vaccine. In 2022, he predicted a $98 billion surplus in the budget; within two years, it had turned into a $73 billion deficit. Total local and state debt now exceeds half a trillion dollars.
Nobody needs accounting expertise to realize Newsom’s healthcare plans are absurdly unsustainable.
The Illusion Of Kindness
Newsom has benefited enormously from his seemingly generous social policies, not the least of which are his healthcare programs. His popularity twice garnered him the votes necessary to achieve his position as the third-highest-paid governor in the United States, as billionaires in his social circle overwhelmingly funded him instead of his opponents. He recently purchased a California house estimated at $9 million, roughly ten times the state’s median home price.
Although nobody should begrudge someone’s legitimate success, it’s imperative that people understand that Newsom’s political fortunes came largely from exploiting other people’s forced debt. Like a parent currying favor by using the family credit card to purchase new cars for his children, he has crafted the appearance of the benevolent benefactor. Simultaneously, he has painted legislators trying to make responsible budget decisions as inhumane.
He is playing good parent/bad parent with more than 39 million dependents.
Leaving The Kids With The Bill
Due to the state’s term limits, Newsom is ineligible for reelection in 2026. After surviving multiple recall attempts, it seems likely he will remain in office for the remainder of his maximum possible eight years.
During his tenure, he has repeatedly over-promised and under-delivered, utterly impoverishing his state in the process. Hopefully, Californians have learned the very painful lesson that the seemingly nice candidate can be terrible for their health.