Can Democrats Still Govern? — with Gavin Newsom

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Go, go, go! Welcome to the 398th episode of the Prophecy Podcast. What's happening? In today's episode, we speak with Gavin Newsom and American politician and businessman who serves as the 40th Governor of California and oftentimes I'm a state for the governor.

I don't, it's like looking at a mirror when I speak to the governor. Anyways, like let me just say upfront, I'm a huge fan of Governor Newsom. We've gone from the fifth largest economy in California. I say we, I grew up in California to the fourth largest.

“He's been a steadfast supporter of what I think is the crown jewel and arguably the greatest”

public agency in the world in that University of California. And for all of the shit posting that Fox News and everyone else does about California, the wealthiest people in the world who have the most options in the world choose to live in, wait for it, California. And I find what is happening to the governor, what they did to Hillary Clinton and that

is he is the most likely Democratic nominee for president, so millions of bots, Fox News.

And everybody else is basically engaging what I'd call pretty systematic character assassination.

So there's California have problems yet, but the rest of the world would pray for California's problems. We hope you enjoy our conversation with Governor Gavin Newsom. Governor, where's this podcast, find you? I am at Ronald Reagan's old abode, the old governor's mansion, which rarely am I able

to do a podcast out of here, so I'm looking forward. Good, well, it was a pretty sheer time, let's let's post right into it, so you leave office in January after six years running the fourth largest economy in the world by most measures, California remains the center of American innovation, actually it's six years or eight years. So it's been a little over seven and a half now, yeah, so it's eight years term.

And look, by a lot of measures, clean energy, AI, venture capital, we've, we, I'm a native

to brag about, um, also a lot of resident, you know, the state like anything else is a product.

“And you have to offer a great service at a reasonable price, uh, give us an honest assessment”

of what you think the state and US leaders gotten right over the last seven and a half years. And why you think people, uh, how we can do better and what programs, whether it's housing affordability, what, you know, what, if you were to give someone a playbook the next governor and say, okay, this is how we go from number four to number three and make that 13 and a half or 13% incremental tax and I realize that there's some of that is misleading because there's

other types of taxes. But how do we make California continue to be a few, well, worth it?

One word answer housing, it's the original sin in California, where it's dumb as we want

to be for decades and decades, uh, we, you know, forgot about our seventh grade e-con class. That's supply and demand, uh, and we simply were not, uh, creating enough supply and demand grew. Nimbiyism, uh, rain, supreme, I've got mine and, uh, people fought hard against new construction about, uh, around investment and, uh, and that created so many of the problems in more ways

and more days, so many of the issues of the state of California, uh, can do, be defined by that, the issues of homelessness, uh, perfect example by a product of the failure to build enough housing and address that issue. And so, you know, when it goes to your question, what do we do about it? It's one thing to complain about it and talk about it. Uh, we've done a lot in the last few years. Uh, the challenges we've done in an environment where

interest rates are high and we've got it stubborn, uh, macroeconomic headwinds. And so, test the theory, uh, we have been pushing boundaries on land use, uh, pushing boundaries on permany reforms, uh, to agree that few or no other states in the country have, uh, last year. In fact, I put my entire reputation by putting a housing package in the budget and threatened, uh, to actually veto the budget of the state. And less we were able to move forward

“with some very aggressive land use reforms. And that was the only way we were able to push”

through the nimeism, uh, and all the usual, uh, uh, opposition that we, we, we tend to find here in the state. And so, that's the issue to me that, uh, that solves more things, but it's also, um, the present in terms of the challenges the state faces. So, I know there's EMB legislation and zoning. Uh, have you considered specifically talk about the programs if you considered, uh, subsidies for developers in addition, I mean, it's both economic

incentives to build, but it's also reducing regulation. How are you specifically talk about a couple programs? They're going to result in a greater supply housing. We've done a massive amount of subsidies, uh, an affordable housing tax credits. We've done massive about, uh, of investment, uh, across a spectrum of supports to aid and advance the housing industry and construction industry. I'll go back, uh, to the beginning, uh, six and a seven years

ago, uh, one of the first actions I took. I created a housing accountability unit in the

state, uh, to actually require real oversight, uh, and enforce the laws that relates to our renaggals, which are regional goals, uh, housing element goals. In the past, the state was not enforcing the law as it relates to housing construction. Uh, the first, one of the first acts I took, uh, as governor, was suing, not in a popular thing to do, uh, but suing one of my cities, uh, and honey to beach. I put 46 other cities on notice. We're able to negotiate

with most of those cities, uh, strategies to improve, uh, density and bonuses, uh, to address their concerns and advance policy, uh, as it relates to those concerns that we were able to, uh, move through with the legislature. We provided billions of dollars of tax credits that in the past were not afforded, uh, developers across the state for housing and all income levels. We were formed our ADU laws. We were formed our single family home laws. We did

42 secret reforms. Uh, those are environmental forms, but we were nibbling around the edges, uh, until again last year, sort of an abundance mindset for give the laziness of that, uh, everything that, uh, as recline and others, Thompson were advocating for and we said,

“uh, we got to go for the Holy Grail. And that's what we did last year, stubborn fits and starts,”

uh, but we ought to power through. And here's the good news, uh, 59% increase in the total number of housing construction since I started, 56% Scott reduction in the time for permitting. And that's very significant. Uh, we're putting more and more cities on notice, honey to beach, by the way, is lost, they're lawsuit, uh, they're being fined because of their abstinence. We've moved from a nimbee mindset to a yinbee mindset, um, and we have focused on an issue that candidly and it's not

an indictment of the previous governors that wasn't a focus in the past. Homelessness and housing were not a focus of the state of California over the last few decades. It was been outsourced

about Arnold Schwarzenegger in relationship to housing policy or even homeless policy. That was

“the requirement and responsibility of local planning commissions, boards of supervisors,”

city councils. That mindset is shifted. And now we are much more aggressive and proactive in terms of enforcement and support, carrots and sticks. So speaking of housing, uh, he said it as a segue. I'm in Los Angeles right now. And I love coming here. It was born and raised here. Once you

see how I, I still think that lives an incredible city. But when I'm here, I'm typically in a bubble.

I stayed in a nice hotel. People come visit me whenever I step outside of my bubble. I'm somewhat rattled by the extreme homelessness. And I understand that supply side or housing is a part of it, but in this is a bridge to this mayoral race, which I just find fascinating. It seems like there's just so much rage in LA that leads to we don't want to talk about government. We don't want to talk about background. We don't care if it's a reality star. We just want change regardless of the

“of the, of the experience, or lack thereof of a candidate. Whoever promises the most change, even if”

that change might be promising chaos and anger, it feels to me like it's a redo of Harrison Trump to a certain extent. I'm curious if what your thoughts are on homelessness being more than just a housing problem, because whenever I talk to mayor, they say by far the biggest, most difficult dilemma is the homeless. It just calls on mental illness, veterans affairs, but LA does feel like as a proxy for if Democrats can't figure out a way to run cities and operate them well,

we're just going to have trouble across the whole federal stack in terms of elections. Securities, what you think about homelessness is relates to things like law enforcement, the drug problem, more than just housing, if you will, and I'm curious, I don't know if you've taken a public stand. I didn't do the research here. Your thoughts on the LA race being a larger

“metaphor for what's happening across our federal politics, I apologize for the word sound of their”

governor. No, I mean, you saw this play out in many ways, similar contours and connecting a lot of the narrative that you just advanced in San Francisco is a relates to the last May oil election, and change did take shape there, they incumbent loss, and there's a different set of spirit and pride right now, you're seeing real progress. You saw some of that progress candidly before the election, but it wasn't felt. People didn't see it, so they didn't believe it. So it's a liberalism

that builds, yes, but you also have to have a mindset around visible results, and the ultimate manifestation of that failure, the bi-product of the affordability crisis, what's happening as it relates to street homelessness, unsheltered homelessness, encampments in particular, the permissiveness, particularly that came at peak during and after COVID as it relates to tents, tents out on the streets inside, walks the quality of life, the immunitional quality life,

and this notion that we couldn't do anything about it, this sort of victim mindset that frankly was almost universal with many of the leaders in local government, and somehow we were applying the standard that it was compassionate to step over people and the streets and the sidewalks in the name of their personal liberty. When in fact the degradation of the communities, the businesses that were impacted by that, the family structure, you know, mom that just wants to

walk his or her kid down to the playground or in the stroll or it was outraged and furious and the trust government. And so it is the issue that defines people's anger, it's the issue

that defines my anger as governor. Here's the good news for the first time and close to two

decades, God. No other governor, I'll say this in decades. We've seen almost a double-digit decrease in unsheltered homelessness in the state of California. We've not seen that. We've actually begin to stabilize the overall numbers, we're starting to see real progress as it relates to encampments, even in LA, by the way, Mayor Bass is making that case for her reelection. But again, it's hard because people have sort of attached so much of their discontent to the incumbent.

San Francisco, we've seen that and across the state, again, rural areas, not just urban areas, some real progress supported by policies in the state that didn't exist six or seven years ago. Again, the state had no homestrategy, no homeless plan. It was not there for the cities and counties and it was obvious the cities and counties were overwhelmed and couldn't move forward without

the support. Unprecedented meant to help support, $6.38 billion. We reformed our conservatorship

reforms to allow a little bit more leverage and a little bit more coercion as it relates to getting people off the streets and sidewalks that are a little bit redicent. We created a third strategy called care court, which is about supportive care not substitute to care and it's producing

give them the flexibility and resources they need. And again, it's a flywheel. Progress is finally

“be made, but it does mark your right. So much of the anger and frustration, particularly in the”

country's second largest city, LA. Just sticking with the theme of LA, a lot of the biggest creative or entertainment companies are still hand-cordered here, but you've seen in this goes back well beyond your administration. It feels like there's just a giant sucking sound in the creative community to other countries and other states and that it's sort of, I don't want to call it a race of the bottom, but I was working on a Netflix show and it's supposed to take place in San Francisco,

but we were going to film the New Jersey because they would give us 40% tax breaks. It's just an

instance of the reality is AI jobs and tech jobs are where the economy's headed. It's a free market

economy and we're just going to California's just going to continue to lose traditional Hollywood jobs or is there something that leadership can do here? Because while you did supersize or you

“increase the tax subsidy budget, a lot of people in the creative community would say it's still”

not competitive and California's going to continue to lose a lot of the mojo around people deciding to shoot. I know that we decided we just can't afford to shoot in California. What did you get right and wrong here and what would your advice be for the next governor? Is it just a case of market dynamics or is there something to be done? Yeah, for decades we frankly stopped investing at our lead, particularly as a relates to production and we watched other countries, particularly

near the border and notably Canada, one of the first to be aggressive on their tax structure. We saw

some of those southern states, particularly Georgia and New Mexico, New York really stepped in a certain themselves and then we started to see the global competition from New Zealand, the UK and elsewhere. And frankly, California was not proactive in terms of supporting the industry, particularly with its tax credit program. You're right, I'm more than doubled it to the second highest level in the United States, right below Georgia, but New Jersey to your specific point,

went even further in terms of how they structure their tax credits above the line, not just quote unquote below the line. But we're seeing the fruits of that over the course of the last year, we've seen so many productions now look a new at California. Is it good enough? No, no one's denying that and localism again, like homelessness and housing is determinative. It's local government on permitting, making it easier over time for police, making sure these production shoots are made

“with a concierge mindset or red carpet mindset that's also really important. But at least”

California is now back in the game in a much more significant way. And we're seeing the benefit, including, by the way, just bringing Baywatch back to California, bringing Baywatch down to Southern California. And that was literally because of the doubling of the tax credit just a few months back. Speaking of taxes and tax credits, your thoughts on the wealth tax, which is getting a lot of a lot of press. You came out against it, correct? Yeah, state driven wealth tax, capital moves.

And we've seen that. It's not anecdotal. We've been a lot of headlines of folks that have moved outside of the state of California that no longer taxpayers investing in this state in generating hundreds of millions of dollars a year, quite literally, in the case of the three or four major figures that we know have left the state. I'm intimately aware of at least a dozen others that haven't that don't want to talk about it and don't want folks to know they've moved

out of the state that are interested in coming back if we don't move forward with this wealth tax. That said, I absolutely believe nationally, we need two tax billionaires more. We need to change the stepped up basis. We need to address the issue of capital gains. We need to address the issue of corporate taxes. We need to address when you've talked a lot about this, the 84.4 trade-ins up to seeing some estimates over $124 trillion of generational wealth over the next decade

and a half to decades that will pass in address the issue of inheritance, dynasty trusts, and going back to some tax brackets that are more analogous to the guy who used to reside here at the governor's mansion back in the '80s or at least in the '60s as governor and president in the '80s. And so we need to do all of those things. At the same time at the state level, I'm proud of this. I don't defend it from a defensive posture. I spent 15 minutes of my state of the state earlier

this year, making the case for California's progressive tax structure. We, yes, have the highest tax rate for the 1%. But by definition, 99% of people don't pay that rate. So people,

tax their low wage or earners, more than we tax our high wage earners, yet they're considered low tax states, which is rather perverse. And I challenge people to consider that perversion. A middle-class family, in, for example, on state of Texas pays more in Texas than the state of California, you looked at the top 10 effective tax rates in America. The new study just came out. California's not even in the top 10. That's not to suggest we're not a high tax state,

but not in comparison to the rhetoric that comes from the right that's painted this picture. And by the way, just if I may, Scott, we grew at 40% since I've been governor. There's no jurisdiction in the United States of America who's growth rate has been more significant than the state of California nation at 15.1% since 2019, California, 40%. We dominate 40% of number, 40% GDP growth. That's confusing. We have more Fortune 500 companies than we've had

in close to two decades. We've graded about 1.6 million new startups, but less than 600,000 during

that time in Texas. You talk about the economy of the state and every category, number one manufacturing state. Number one state for farm, you talk about farmers, you talk about ranchers, you're talking about California, you talk about hunting jobs, you're talking about California. It's not just ag, it's not just Hollywood, it's fusion, it's quantum, yes it's AI, dominating, in that space, but in every key category and it's not by chance, it's by design,

a formula for success, you, intimately understand that is about that conveyor belt for talent. The UC's and the CSU's, the community college, it's about research and development, pushing out the boundaries of discovery in the National Institute of Health and National Science Foundation, it's about best in the brightest, first-round draft choices from around the rest of the country policies that have helped advance the economic architecture of this state and

our nation as the temple of the U.S. economy, California. So, and to your point, money is optionality

“and the wealthiest, I think California is a great concentration of billionaires or people with”

most options in the world and they decide to stay. So clearly, despite the taxes and the governance or their criticism of it, they still opt to stay. It feels to me like the Exodus is rumors of the Exodus are vastly overstated. Having said that, "Should you, I want you to imagine that someday you might hold federal office. Would you be in favor of a proposal that said,

all right, if you had the founders of Google and you were a $60 billion and you aggregated

that wealth because of the unbelievable infrastructure, culture, I think the greatest public jewel in American University of California that you should not be able to piece out to a low tax state that you should, in fact, pay the state taxes of where you aggregated that wealth. Would you be in favor of some sort of federal legislation along those lines?" Well, the first time I really thought about that was when Elon Musk, the great fanfare announced he's quote unquote leaving

the state of California and taking Tesla with him. Of course, he took a piece of paper with him, the Corpus, and actually had it 10th of the House of New Jobs in California. Came back, Scott, and opened his World Headquarters for R&D because we're 18% of the globe's R&D in California, get compete globally unless you're in the R&D space in California. It's another area of dominance for us. Came back, but he took his capital gains with him to your point.

“And that's why he'd quote unquote left to Texas and many others are doing the same. And so I think”

it's absolutely, I've never considered that except the futility and frustration, many of us have

for these folks that have taken advantage of all of what you just described and what I was trying to describe earlier is that formula. And then when they hit that peak and they were going to start to sell or borrow against their stocks, something we have to also address in this country and avoid taxes completely, they left the states. So yeah, my state of mind would very much be on leveling that plane field. It would have a huge advantage states like California. And this

race to the bottom would be less pronounced. And by the way, that race for the bottom includes the tax credits as it relates to a film. And that's why, also think the president of the United States has a role to play here, Trump on looking at federal tax credits to keep American film production. Which also would be significant in help level the plane field as it relates to those international

“tax credits. That I think are the biggest driver of the Exodus of the creative economy,”

even more so than what New Jersey or New Yorker even even Georgia is doing. When we write back after a quick break, support for the show comes from Odo.

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Seriously, all of them. It's been $250 on your first campaign on LinkedIn ads and get a free $250 credit for the next one. Just go to linkedin.com/scot. That's linkedin.com/scot terms and conditions apply. So it's struck me that there's something about not just California, but it feels like proximity to the Pacific Ocean, whether it's, you know, Nvidia is now worth more than every publicly traded company in Germany and Spain combined. And they chose Taiwanese immigrant, went to school in Oregon,

then Stanford chose to headquarter in California. Obviously in Washington, you got Amazon, you got Microsoft, you go down to San Diego, Qualcomm, you got SpaceX, you know, alphabet, meta, just on and on and on. And then you hit the, you hit San Diego on the Mexican border, you got to go another 6,000 kilometers to get to Mercado, Libre. You hit the Canadian border,

you got to go a couple hundred miles to get to Lulu Lemon, which is, you know, the only billion

dollar plus company. What do you think it is about? I want to even say California the West Coast that creates so much value creation from a shareholder standpoint and what would you suggest the

“governors and officials do to maintain? What is the secret sauce and how do we keep stirring it?”

No, I mean, I think it goes back to that formula. This is all by design. It's our values, 27% of California, and you can extend this to the diversity in those northern states as well, but 27% of this state is foreign-born or majority minority state. You go to an Nvidia, I was just down at their conference, say, "Come on, you walk around." You know, thank you to the contributions, not just from Taiwan, but mainland China. Thank you for those that have come here for riches and

new beginnings that felt included and seen from India, the diversity on that floor, the entrepreneurial

energy, the future. They all know happening here first where America's in globes coming attraction,

the entrepreneurial spirit, the innovative spirit, the energy and daring, the rules for risk taking in California, but not recklessness. There's no Tesla without the regulations in California. You opened on clean energy. We dominate in that space, and we dominate in that space, because we don't want to be dominated by China in that space. We continue by the way to make the

Iran. The sun cost the sun, never goes up. And the opportunity to capture that as we capture

market share and competitive strength moving forward. But I think this notion of immigration policy, legal immigration, again, back to the framework of First Round Drive choices. The commitment to R&D, I mentioned 18 percent of the world's R&D. Germany is about 20 percent, China about 21 percent, California, 18 percent of that R&D, Sandilab's Lawrence Livermore Labs, the finest institutions of higher learning. You went to one, not just UCLA, but UC system broadly, defined Stanford Caltech

and these ecosystems venture capital. I didn't even get to that 106 billion last year, which 62 percent was reinvested in the state, because we have a startup mindset, an entrepreneurial mindset back again, risk taking. So all of these things are part of a formula that we've exported.

“So the world we invented is competing against us. That's why we have to invest in our lead and”

that's been the mistake of the past on a lot of the issues you've touched on. I can't make up for the last 30, 40 years. I am accountable for the last seven. But I think many of those things are truly American and we've exported them and I think they need to be scaled even more broadly and socialized more specifically in the consciousness of the American people that I don't think fully appreciate aspects of this state that certainly predate me that are deeply present

in the future that we're all creating together. So by some estimates, AI, the majority of that channel that value creation has actually been in California on the West Coast is responsible for 90 percent of the GDP growth nationally. Extraordinary value creation. At the same time, there's so many concerns over it. And I was thinking that a lot of these founders will claim that this is

“more powerful and has more upside in terms of value creation and potentially more danger than nuclear,”

than fission. That this might be a more dangerous but powerful and have more potential than nuclear.

But we would have never imagined back then letting private companies develop and sell nuclear bombs.

So my question is, why is having private companies? It's clearly good for shareholder value. But what is the government's role in AI? Because right now it strikes me that the government's role is to make sure there is no regulation around AI. And you're in a difficult spot because you want to let your thoroughbreds run. You desperately need that tax revenue. You desperately want to be continue to have the money to ensure that there's social programs, continue to attract the

best and brightest who are going to go where there's the most economic upside at the same time. It feels like the only regulation around a technology that according to the founders is more dangerous than nuclear is got to come from you or not. What is your thought at a state level around regulation at AI and at a federal level? Well, it has California's the only state you're talking the only governor I in Hockel to her credits. She backed in on some of the policies we advanced a few

years ago, SB 53 to regulate large language models to regulate front-tier models. We did so as relates to transparency and safety and it was a multi-year process, very controversial. And we led as we lead on a lot of these child safety issues and we have a lot more work to do including a number of bills that I look forward to signing in the next few months, particularly as well as the social media and in our kids. But on AI we're the only game in town. So I couldn't agree with you

more and nor could I disagree with you less on the fact that it's a huge part of the narrative that I just advanced for you or as it relates to the 40% GDP growth in this state. I'm not naive about that. I love your frame around these thoroughbreds and I just had my budget announcement. We're balancing not just for this year but the year I'm gone multi-year because of the abundance in capital gains. Another $16.5 billion by the way, just in corporate payroll and personal income

tax just the last three months. I can only imagine what takes place and shape as we see what happens

to SpaceX in the next few weeks and potentially anthropic and open AI. So we're always trying to find

that balance around peril and promise around truth and trust and transparency. But we have been muscular in leading. We've been very aggressive in condemning the Trump administration that have

“a letter ripped policy. I think the mythos example that was pulled back was an example of perhaps”

some short sightedness in that space that even within the Trump administration I think there was a pause only to be relieved again when David Sachs picked up the phone and Elon Musk and said,

asked the question, said a lot like the Pope, said a lot like Steve Bannon, there seems to be

“a growing consciousness around these concerns and how we can regardless of politics. I think”

there's a bipartisan, I mean I said almost a universal construct here that we should you know accelerate the technology but we need to steer the technology and we need to address the downsides, particularly in a society of security and trust and we can't have in the hands of five human beings the ability to decide our fate and future, what we read, what we see and who we

ultimately vote for, these algorithms that are redesigning us and so we're leaning in on that

nationally, complete absence of any leadership or accountability. It's a corruption story. Trump's part of that corruption, his family's part of that corruption, I think that explains it as much more than anything else and I think the Republican Party, Democratic Party will pay a big price unless we lean into this, not from a job's apocalyptic perspective. I know you have, you think that's more of a fundraising story which I appreciate. I think there's zero evidence to suggest

“you're wrong but there is some evidence to suggest you may not be right and that's why I'm also”

leaning in to make sure we're prepared if this is as Dario says, even if he's half right, 50% of those white collar entry-level jobs will be gone in the next four and a half years, even if he's half wrong, I want to be on the right side of this and prepare for that and we have five specific strategies that we've advanced that I'm not aware that any other state is advanced, the states have a responsibility and role to play here. And how do you prepare for that? Give us an overview of the

cliff notes on those five strategies if that in fact plays out. If you, you know, I think one

thing about gender of AI is we've all learned, my mom used to say this to me, I never understood

until now it makes more sense in this concept but you don't like the answer, ask a better question and I think so much of AI is about what we've propped in the questions and the creativity that we bring in those human features but for us the questions now we're asking to your specific question. If the clerical work is being impacted there's no clerical capital so it's hard to define it geographically and if it's happening not on the factory floor but you know quietly

and it's you know there's a little bit of noise but not a lot of noise with the unemployment numbers but if it does hit us and it hits us on the head, are we prepared with our unemployment insurance system? Is there a different and better approach? So we're piloting employment insurance. We're piloting strategies by the way the deans do this where we pay employers to keep you employed and pay a percentage of that salary over the course of a number of

years and and then provide that ramp to the alternative looking at portable benefits radically differently. We have something called secure. California is a relates to retirement benefits. We're looking at other benefits that aren't attached like healthcare to your employer looking at the payroll tax system that perversely rewards the exact thing we want to avoid which is we give tax credits for automation but we penalize businesses for hiring and looking at

strategies to address that that don't impacts our security and Medicare we're looking more broadly at strategies that to me are particularly interesting around universal basic capital looking at wealth sovereign wealth funds. I years ago talked about a data divinum

work with a bigger and institute we struggled with that but we've created 5.5 million child savings

accounts. We did the Trump accounts six years ago before Trump ever did. We have a mechanism now of baby bonds we have as well for years and years how we can use those accounts to create an ownership construct not charity UBI universal basic income but ownership equity it's more difficult one thing to say another to do but we're having advanced conversations in that space and so I put out a lot on this we've done a number of executive orders procurement different strategies

“and I think I think we need to be prepared and I hope you're right I hope you know”

Dario is wrong but I don't think we're having the kind of debate we need to be having across country on what could happen if this thing moves as quickly as you guys people think it might. Yeah well I get along all the time I think you're smart to be thinking about what happens. I want to move I'll come back to domestic politics in a couple minutes when I'll talk a little of Iran for a long time Democrats have agreed with the president that Iran cannot be a nuclear

armed Iran. What do you think the president or the current administration has gotten right and what have they gotten wrong about Iran and describe kind of where you think we are now and if you

bully pulp puts in the world. What do you think he's gotten right the administration has gotten

right what has he gotten wrong and what do you think we should do moving forward? Well I was an early supporter of those of his efforts to bomb those facilities and I know Democrats were hesitant about that and had on my own podcast you know a lot of the folks that helped design those strategies going back for three four administrations and and I thought it was perfectly executed and you know we can argue the timing but I'll argue was well timed since then I've been flabbergasted by

“the just total incompetency this guy's way out of his lead on Iran. I mean I think we've had six”

automatums all of them that have been passed talk about a red line he is servicing no confidence

in the global construct. I mean we're paying what 21% more in air fairs since the war we're

paying 18% more in energy since the war we're paying 53 that for give me I've been looked today the last week when I left on Friday I was 53.1% more for gasoline dollar 51 here in California dollar 55 on average across the United States and he still hasn't had a consistent theory of the case and we had a peace deal this weekend and we're bombing this morning and so he's just gotten it wrong horribly wrong with this iteration of his pursuit but look the pursuit of making sure there

is a real red line on ending the nuclear program was wise throwing out the JCPOA I think was foolish and the fact that he's brought you kind of back into a version of Obama's original zeal

is rather remarkable and I look forward to Sean Hannity explaining that to his viewers on Fox.

What do you think the administration has gotten right and wrong with his respect to our relationship with Israel? Oh way too permissive to BB I mean the recklessness of the BB's administration and putting a parallel to state solution we should be much more aggressive and demanding some reforms in that respect obviously even BB's acknowledging that there's a timeline in terms of of foreign aid particularly coming from the United States he's talking in 10 years

but now most universally at least in my party democratic party rightfully started about conditioning that aid supporting the defensive posture but certainly conditioning that aid is relates to the offensive strategies by BB and his administration I'm hoping there's a change in administration I don't want to get a foreign politics domestic politics within Israel but hopefully there'll be some fundamental change in October coming out of Israel but if there's

not and we're doubling down on stupid as BB does we're gonna have to have a complete reset

“as a relate to that relationship but I look I think the president has been just too simply”

permissive and supporting BB's agenda but he's not wrong in supporting Israel and I've long supported Israel long condemned with clarity the terrorist attacks by Hamas and condemned how this war has been conducted in response to those attacks by Hamas I was just talking to Jose Andreas about you know his experience this this weekend in Gaza and how food was used as a weapon a war the starvation in Gaza I'm you know watch tens of thousands of people dying he's you've

got and we all have kids what the hell happened in terms of how they conducted this war's disgrace do you think there's any truth to the notion that Israel and the idea for hell to a higher standard in terms of what we expect from members is some of the atrocities elsewhere

“I think at times that may be the case I don't disagree with you on that and they”

would have to be cautious about that and I you know as someone that went to Israel right after October 7th met with the president met with the prime minister and the bunker brought supplies medical supplies field hospital by the way we brought a field hospital to Israel and eventually got it into Gaza so I wasn't there just rhetorically and symbolically but I was there because you know I I've long condemned for using the word revered but I I've long been a support

of Israel just not this this president you can see yourself as honest yeah I mean to the extent that everyone has seems to me loaded word yeah and everyone has a different definition and I've seen a weaponized I didn't extend Israel's right to exist yes of course and I believe that right should extend to the Palestinians and we you know and I think that needs to be announced yet it will be more clarity as well we'll be right back this show is supported by Atio the AI CRM

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but unfortunately I have you for about another 18 minutes so I'm going to do a bit of a lightning round of love to just get your top line thoughts on some stuff just general reactions if again should in fact you at some point have influence over federal policy or national policy mandatory national service I mean are you kidding you're talking to guys built the largest service core in the United States of America significantly larger than the peace core someone that

has without going out of my way been critical of what we tried to do on student debt

in the last administration without asking for anything in return I'll give you an example Scott because I know you care about higher education UC system which by the way we've invested since I've been Governor 46% increase in investments in the UC's 40,000 more California residents have gotten into the UC system 55% increase in dual enrollment and 65% of people coming out of the UC and CSU still graduate debt free I don't know there's many systems is large and we still have

work to do I'm not naive about some of your critiques but one of the things I'm proud of is we provide $10,000 grants for service in return for 450 hours of service contribution and it's just been extraordinary absolutely we need to make it mandatory how we do that and scale it there's some

“nuance but I think it would be one of the most significant and consequential things to knit this”

country back together $25 an hour minimum wage I've done it not talking about it I'm only Governor country can lay claim to that $20 for fast food workers criticized hourly in the Wall Street Journal Ed board and $25 for health care workers 1690 adjusted for inflation for everybody else but nationwide it's a disgrace 20 states have $7.25 minimum wage and you and I are subsidizing those corporations with our tax dollars with so many other workers that are ending up on

on the public welfare roles and so it is it's outrageous and needs to be indexed to productivity and that gets you closer to $25 perhaps 40% of American households have some sort of medical or dental debt what about lowering medical eligibility by a couple years every year or single

“pair effectively nationalizing or socializing health care in this country I think it's inevitable look”

and you know I say this I don't want to come across as braggados just but you're also talking someone who's done more on advancing universal health care than any other governor in the country regardless of pre-existing conditionability pay and yes I've been criticized and I'll take the

costs on pharmaceuticals credit something called calarex in the spirit of single pair financing for drug purchases eleven dollar insulin is an example of that and we've done the same low cost

“in the lock zone and we're subsidizing diapers for newborns in California I think single pairs”

inevitable in the United States America I think the math doesn't add up for the private and public sector I think the issue of debt and entitlement will be a dominant theme in the next five to 10 years both parties have neglected it issues of air energy and climate change and how we can democratize

our economy to save our democracy being the third like of that stool but I do believe it's inevitable

that we move forward the how is the difficulty how the hell do you do it without impacting your private health insurance my private health insurance and disrupting but the the math just doesn't add up and so absolutely we've got a lean into that debate as I've tried to do here at a state level with a risk of issues eleven fifteen thirteen thirty two waver issues forgive all that if you're listening you're already bored but their challenges at the state level of getting it done we push the

“boundaries in California but nationwide I think it is inevitable and needs to happen so if you”

live in California and a high income earner whatever for to as a workhorse mom's a baller partnered a lot firm dad on some car park clinics right certification worked their asses off

make two or three million bucks here in New York or in California the paying fifty two fifty four

percent so people would regard to hit on the notion that the rich aren't paying their taxes it feels like it's the owners who qualify or the point one percent people own assets 80 agree with that and be what would you do to elevate or create a truly progressive tax system where the owners start paying as much as the super earners if you will well no it's a look if you're you know I paid doctor lawyer counts and and you're getting tax on income I get why you're over this you know

saying what's what's fair and you blow back but to your point the the super wealthy aren't paying on income they're paying on that capital so we have to address that issue question is how to help you do it and we talked a little bit earlier about stepped up basis we talked about the issue borrowing you know these lifestyle loans which you know we can overstate but they they exist and process to we we could talk about issues around corporate taxation which is more

broad then the issue of individual taxes we can talk about the issue of transfer of wealth and how we have to address some of the state taxes these dynasty taxes these generations skipping taxes and how we reform those trusts in this country and how we get to income tax bread brackets that we once had for the ultra wealthy in the super rich there's some constitutional questions it's not me blocking on the issue of a wealth tax but a billionaire tax absolutely and we've got

be much more robust in this respect now Biden put out a lot of policies 25% minimum tax for billionaires it's not not an AMT it's not the Buffet rule but you know it's in the same genre so what's the Buffet rule that you get to unrealize capital gains that gets a little more challenging how you mark to market easier with equities we have no choice the social contract it's over it's

“going to be in I think it'll be detonated by AI the imbalance between the rich and poor is the oldest”

and most fatal ailment of all republics that's plutark warning the Athenians 2,000 years ago 10% of people only 2/3 the wealth those things 10% only 93% of the value of the stock market

this thing first trillionaires coming later this year maybe next month I mean this thing's not working

the pitchforks are already coming out Molotov cocktails in assassinations on the streets of CEOs you feeling it and we have to get ahead of this and it's not me begrudging other people success businesses can't thrive in a world that's failing what does that look like is it raising like a what would you think of an alternative minimum tax at 40% every time if you borrow against your assets at triggers a capital gain but in a minimum corporations paying an an AMT of say 40%

wealthy people louples you know be damned if you're not paying at least 40% above a certain amount you pay 40% I mean it's exactly where we need to go the AMT so I mean I was looking back at the old AMT the other day we were at some tax experts in looking back at the I had forgotten about the 2017 tax cuts all the damn louples in that what a mess that is on the AMT but absolutely moving back to along the what you just described I'm not landing prescriptively but I'm landing

absolutely generationally back to and I and I'll say it I don't want to come across as you know another throwaway line but I really believe that the issue of democracy which I've been very aggressive about in Prop 50 redistricting calling out Trump and Trumpism is directly connected with the issue

republic and so these are the same fights it's the same fight and you know you're hearing

you know white collar workers and a lot like blue collar workers there's a new working coalition here and you know there's aspects of burning Elizabeth and HLC but you know I you know in that

“populism but we I think those that have overseen capitalism as we've known it and that decline”

we owe it to people to own up to these trend lines and and we've got to be much more aggressive and assertive and so AMT along the lines you suggest exercising some real stuff up basis strategies that protect farmers that protect small businesses and and particularly business this is just table stakes right now and needs to be aggressively adopted in pursuit. We want to target this in our remaining few minutes here so it's a little bit more personal when

you look back as your 10 years governor comes to an end when you you know 10 20 years 30 years down the road when you look back what do you think you'll be what is the one thing you'll think you'll be most proud of and what is the one decision or action you think you know I missed it there. So weird thing because I don't want to it's almost too easy and lazy. This service commitment I'm telling you I'm a star striver Democrat I'm a I don't know what it is about

the vernacular 60s and saw me frigner's poverty in disease and you know I love the bobby Kennedy sort of the hard-headed pragmatism he didn't begrudge other people success there was

“the pragmatism and a muscularity you know I think the biggest problem with the Democratic”

party is we're perceived rightfully as too slow weak and ineffective we got to be more aggressive stronger and more sort of more clear more conviction but this notion of service you know the old ad is no one stands taller than when he or she bends down on one knee to help lift other people out by seeing it knee eyes we do swearing in Scott we do it virtually and we swear in all the service members and I'd sit that I start crying and you know first generation

Republicans that no one cares it's just a spirit of community and and these kids they're experiences off the charts they come out they're just changed my life and so I'm telling you

because it was interesting my staff was not a huge support of this legislature I always have to

fight to get the money in this I'll look back at that it's one of the most you know significant also creating these 5.5 million in a concept but 1.9 billion dollars with a big surplus one year creating these child savings accounts create a brand new great treat pre-k for all every child get into kindergarten gets their own savings and career account those are things I'm proud of we I can go to all the policies and talk about doubling their income tax credit creating

a new foster care and child tax credit can talk about that pre-k for all talk about after school for all summer school for all we can talk about everything done on community schools we can talk about the health care expansions the work we've done on the environment the work we've done

on our jobs plans this amazing uh regional plan strategy I can go on and on but service people

mentorship leadership addressing this crisis of men and boys which you've been just next the level on it's something I'm proud of perhaps as much more than I was then backing up for

“given along when it is on we're all geniuses in hindsight and I think about those early days in”

COVID when you know Rhonda Santis was shut down the beaches not just Gavin Newsom in California you know those we lost a lot of trust you know during COVID and and we we haven't gotten that back and I think we've under indexed out so much has changed since COVID and I was a little slow at understanding how much it changed and so it's not it's not a specific action per say but it's I think just broader tonal appreciation that everything had changed but I had it changed to the

grade that I should as a leader of the fourth large economy of the world um I have begun to address that in much more robust ways but I think that would be uh um you know that would be something I would reflect on as as a point of critique and consideration so a lot of young men listen to the podcast you're a father and a husband four kids is I reckon yeah four two boys two girls what advice or what learnings what what do you think you got right and wrong and what are your

learnings and advice you would give to a young man he's thinking about trying to be a good partner and a good father just you you were I I'm so influenced I don't want to brag all over you man but you know so influenced by what you've written what you talk about in this but as you talk about kindness oh come on super power empathy care compassion it's not about power dominance and aggression oh that's said I do think the notion of you know be a man is important I'm not trying

man when you're friends laugh because someone's accent or how they're talking every time my kid does something like that I literally looked I grabbed them and looking at the fact you don't talk like that man don't talk like that it's not who you are and I create an indelible thing it's not who you are and talking those terms it's not who I think you are it's not who you are and you want to be a man you have the back of that kid that's being bullied you have the back of the

“kid that's being chastised that's what masculine masculinity looks like that's what leader does and so”

to me that's that's that's the superpower I want them to have that's and that's to me the most important character test where I failed is I struggle with this you ask about you know Iran you talk about Israel you talk about two years from now I just not been as present as I need to be and this is you know I'm not making an excuse but this is the price of these positions and I really think about that going forward my son he's not all into this stuff and he's at that

critical age and I don't want to be in that rocking chair so I would have cut a shit a and so I just

think I need to be I need to be more present and as he's know it's not what we say it's what we do it's how we you know he's watching how I treat my wife he's watching not what I say but what I do and and what if I'm there for her and I'm around and so I think about that as a as a short coming you're in a constant attack as our other political leaders and as is your your wife the first partner does that inject stress in your relationship and if so how do you deal with it yeah

it's brutal I mean no old's barred I mean I'm a he become a character tree become a you know I might come on turn on fox I've you know I'm getting the full Hillary Clinton treatment or the Pelosi treatment and you do you come dehumanized I worry about that from a safety perspective and and you know no holds barred now it's they don't have to your kids you know I had to pull

“my daughter out of her school and we had a I'll never forget talk about regrets her it's great”

graduation was in our living room now so proud of her Scott's and forgive me I now I don't know why I'm getting emotional I was so proud of her just you know in terms of being you know a dad I talked about my sons about being men but I was so proud when she gave a speech and and I just said look

over my head because then it all looked like and she looked up and she said dad did you see I never

looked down when I gave my graduation speech was in front of seven of us that was the front of a family or brothers sisters and I was just so proud of her but I was also so upset with myself that she didn't have the experience of being there with her classmates because of some of the stuff related to her dad and there was a middle of my recall at the time and so yeah when you know I remember reaching out to Ted Cruz when someone after his daughter you know and Ted and I trust

me don't graham much but man we agree on that just that's not right and you know people's wise I guess some cases when the you know fair game in other cases it's just hard so forgive the long one no one gets no one cares you know hearing me say this but as human beings I just you know I know we love to hate politicians but then it is still parents and they still are husband's wise human beings and you know that's why I don't it's why I have Republicans on my podcast it's why

“man I you know divorce is not option in life and and that's why service is so important and we're”

just gonna have to figure all this shit out and last thing governor in your book you are very quite raw and pretty authentic about your feelings as a son towards the end of your mother's life can you talk a little bit about that and advice you would have for for sons as with aging parents well I just I called the book young man in a hurry you know I was it was all about me and I was just dealing with my own insecurities my own anxieties put a mask on and you know try to be what I thought

I needed to be but my face was starting to grow into it as becoming someone I wasn't and I wasn't present wasn't there for my mom wasn't there for my sister and and the people that mattered most and it took a phone call for my mom which you're referring to in a book where she left a voice message

just says everything talk about a young man hurry was never around she had to leave a voice message

saying that her last day in life was a few days later on a Thursday where she was gonna do a assisted suicide she was in so much pain because her fans cancer and and she just left the message saying well if you want to see me before then it will be my last day and was such a wake-up call and and you know you don't get it over the no-do overs here man you know don't dream of

breath and you know as a tough moment being there with her holding her hands and tell she took her last

“breath and you know I still didn't have the courage to say what I said to her after she passed away”

and I stood there 30 minutes sitting there at my hand my head on her stomach just saying all the things that I wish I could have said and had the courage and guts to say before she passed and you know I don't wish that on anybody and so you want to be a man you want to be a son you want to be a

leader then you know man up be a partner be a caregiver be other people oriented it's not just about

you and you know it came from me a little bit later than it should have but I hope and pray for others it doesn't for them you have a new soon as an American politician and business man who serves as the 40th governor of California governor very much appreciate your service thank you Scott one of all to be with you

this episode is produced by Jennifer Sanchez and Laura Jenner camey reek as our social producer Bianca

Rosario and Mirus is our video editor Andrew Burris is our technical director thank you for listening to the property pod from Prop G media support for the show comes from Odo running a business is hard enough so why make it harder with it doesn't different apps that don't talk to each other introducing Odo it's the only business software you'll ever need it's an all-in-one fully integrated platform that makes your work easier

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