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.

To many Californians, that sounds like grade inflation.

Nearly one in five Californians are considered poor –– the highest rate in the country –– and giving Newsom high marks simply ignores the obvious.  

A lengthy Bloomberg article makes the 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. 

Newsom’s government-funded digital media team celebrated with a series of funny-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’s because it is. 

Newsom’s economic agenda doesn’t deserve an “A” grade –– or even a gentleman’s “C.”  

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

To be fair, Newsom doesn’t earn an “F,” because California is experiencing job growth. The problem is we’re not growing as we should –– and Newsom’s policy agenda is the reason why. 

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 just hasn’t been 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 the dot.com recovery 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 has fewer private sector jobs today than in 2020. 

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

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

Californians aren’t thanking 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. 

Newsom argues on X that “the ‘exodus’ narrative is nowhere to be seen” in his administration’s economic record. 

But U.S. Census data confirms more and more Californians are choosing to leave the state every year –– and domestic outmigration has accelerated since 2021. 

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 bottom line, and the California earning advantage disappears.  

Astonishingly, you can take a 35% pay cut compared with what you’d earn in California and still have the same purchasing power elsewhere. It’s no wonder so many are leaving, even if they have to take a pay cut to do so. 

Despite what Newsom posted on X, it’s clear California’s “doom loop” isn’t a 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 on homelessness, and the answers were preposterous.  

During his time in office, homelessness has increased 24%, and Newsom spent more than $37 billion to make that happen. 

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.