Newsom grilled over California having 'highest cost of living' in US amid affordability crisis

LOS ANGELES, CALIFORNIA: In a CNN interview aired on Sunday, February 22, Governor Gavin Newsom faced tough questions from host Dana Bash about the high cost of living in California.

The conversation focused on why so many people are choosing to leave the state to find more affordable places to live.

CNN's Dana Bash confronts Gavin Newsom over California's high costs

During the interview, Bash pointed out that California has the highest cost of living in the US, with prices about 11% higher than the national average. 

To illustrate the problem, she shared a story about meeting a couple at a restaurant in Nashville who had moved away from California because they could not afford rent or a home, which made it impossible for them to start a family.

In response, Newsom highlighted California's economic growth, noting that the state has become the fourth-largest economy in the world.

He argued that the state now dominates in every key industry, from AI, quantum, robotics, agriculture, forestry, and manufacturing.

Gavin Newsom touts childcare slots and family leave

When Bash pushed back by saying that many residents are still struggling to afford daily life, Newsom highlighted steps his administration has taken to lower costs.

He pointed to programs like "$11 insulin" and expanded healthcare, as well as new laws that increased the minimum wage for fast-food and healthcare workers. The Democrat also mentioned that the state has provided 300,000 subsidized childcare slots and expanded paid family leave.

According to the governor, these policies were designed "to support families, to address cost of living and to address the affordability crisis that goes back literally 70 years in California."

Gavin Newsom addresses California's housing crisis

While defending his policies, the governor admitted that California has failed when it comes to housing.

He stated, "We're as dumb as we want to be on housing, and we haven't been able to get out of our way." He acknowledged that this issue is at the heart of many of the state's problems.

However, Newsom expressed confidence in new, major housing laws that he believes are the most significant changes the state has seen in a long time.

He stated, "It explains more things in more ways and more ways of what's wrong with our state. And, finally, we moved forward with historic housing reforms that even our worst critics, including some on the left, like my friend Ezra Klein, acknowledged were the most progressive and perhaps most impactful reforms in a generation to finally address that issue."

These issues will likely be a major topic of conversation if Newsom runs for president in 2028, a race where he is currently seen as one of the leading Democratic candidates.