Steve Hilton: How California Became America’s BIGGEST Political Failure | PBD #803

Añadido: 2026-05-22

[00:00:10]Adam, what's your point? The future looks bright.

[00:00:14]>> My handshake is better than anything I ever sign. It's right here.

[00:00:18]>> You are one of my >> She is. She is. And a couple other people are as well. Okay. So today we have a special guest who is trying to do the impossible. I would say you're trying to do the impossible. And the reason why I say that is because California politics is so controlled by so many different people. But it takes somebody with courage who is willing to go and drive some conservative common sense ideas. Two people in California who've been devastated the last four to eight years who love their state who don't want to leave who want to see this place become the state everybody would flock to. Instead of now looking at the numbers back to back to back the last six years, number one state in America for negative net migration, they had so many different issues. Most expensive homes, average home in California right now is about $96,000. Number one in homelessness, 13% in population, but 28% in population of homelessness. You can go highest prices of g so many different things. And then comes a guy like you that wants to run for governor of the state of California. And it's great to have you here with us.

[00:01:20]>> Fantastic.

[00:01:20]>> One and only Steve Hilton. Yes. Great to have you here. So, I got I before we get into the story, I want to ask you a very open-ended question.

[00:01:27]>> Yeah.

[00:01:27]>> Who runs California? Is it the governor?

[00:01:30]Is it the unions? Is it the money, the billionaires? Is it the NOS's? Who runs?

[00:01:35]Who's the most powerful institution or individual in California when it comes to politics?

[00:01:40]>> What a great question. I'm going to answer it with a story, which is almost the reason that I'm doing this. Like, it's the closest thing to an actual moment when I thought I'm going to go for it. So um many people know me from Fox News. I hosted a show there for many years but most of my career before then was in business and I worked a little bit in the government as well in the UK before moving here with my wife and my two sons in 2012. I was senior adviser to David Cameron in 10 Downing Street responsible for implementing our policy reform program along with many other people in the team there. So what the reason I'm saying that is most of my career has actually been doing things like trying to make change happen in the private sector in government and so over the years of being on TV I was amazing opportunity I loved it but I had a itch to get back to doing stuff and so a few years ago I I got back involved in policy and politics in California and the first issue I looked at was housing you just mentioned it housing cost actually is the number one reason people are leaving the say it's just impossible, you know, like hardly anyone can even imagine owning a home now in California.

[00:02:50]>> $96,000.

[00:02:52]>> It's something like, you know, I mean, we have the lowest home ownership in the country. Anyway, so so I started working on the issue.

[00:02:57]>> Yeah.

[00:02:57]>> Really learning about what's been driving it and so on. And it took me to trying to get a an initiative qualified for the ballot that would address two of the big drivers of this insane cost. One of them is a hidden tax on housing called impact fees, the development impact.

[00:03:15]>> Pull that up.

[00:03:16]>> The second is something that's talked about a lot, which is, by the way, this really does answer your question. So, just >> please. Yeah, I'm with you.

[00:03:26]>> I'm getting there. Uh, something called SQUA, the CEQA, the California Environmental Quality Act, passed in 1970. And it was all about when it started out regulating pollution from big factories and so on.

[00:03:42]But over the years it's basically turned into a nightmare that blocks anything and holds up everything. And one of the main problems with SQA, this law is that they've given this what they call a private right of action. Means that anyone can file a lawsuit to enforce this environmental law. Normally with stuff like that, it's the DA or the attorney general. with you've got this private right of action. Anyone can file a lawsuit.

[00:04:10]70% of SQL lawsuits are used to block housing. Most of those are filed by unions in order to negotiate with developers what they call project labor agreements where you have union workers only or um what they call prevailing wage which is two or three times higher than market rate wages etc. >> Yep. So the second component of this ballot initiative was was ending this private right of action. So at a stroke you stop all these nuisance lawsuits that block housing. Didn't raise the money to get it on the ballot. Then I started engaging with Sacramento. I thought maybe we can make it happen through the regular political process.

[00:04:48]And that's when I ran into the answer to your question who runs California. I started having meetings with legislators. One particular person they said you got to talk to this person.

[00:04:59]They're really good on housing. You you work with them, you're going to make some progress. We had a great meeting.

[00:05:04]This person really the Democrat member of the state legislature said, "Your plan is fantastic. If we make this happen, it's transformational." That was the word.

[00:05:14]>> I said, "Great. Let's work together on it. I'm a Republican. This person was a Democrat. Cross.

[00:05:19]>> Is this a heavyweight? This is a heavyweight person."

[00:05:21]>> No, you wouldn't have heard their name.

[00:05:22]And I'm not going to say their name because actually it was a private meeting.

[00:05:25]>> Not privately. Is it a heavyweight person? Not publicly because there's a lot of heavyweight private people >> midway. I'm going to say fair.

[00:05:30]>> But a legislative but anyway.

[00:05:33]>> I said let's work together. Well, I couldn't support you publicly.

[00:05:37]>> She's telling you this.

[00:05:38]>> Why not? Well, the unions would hate it.

[00:05:42]I said, yeah, but you just told me it'd be transformational. We were in an office overlooking the state capital like this with their arm like this. Well, the unions run this place. That's an elected member of the legislature saying the unions run this place. And you just think, what is this? It's ridiculous.

[00:06:04]And that's the most clear answer to your question, the unions. And when people ask me, how did California get like this? How do we go from having the most amazing opportunities anywhere, not just in America, but in the world? If we agree that America is the greatest nation on earth, which is what I think California is the greatest state, there's something I always say, which is California means to America what America means to the world. It represents everything that's amazing about our country, ambition and opportunity and energy and hustle and all those things. And yet it's been crushed. That spirit's been crushed over the years. And people say, "Well, how did it get I wrote a book last year, it came out last year, just before my campaign called Calopia, reversing the ruin of America's worst run state. I tried to trace it back and my conclusion was it all started when the unions were given collective bargaining rights and over the years built up this incredible power this lock on policy it's the government unions not just government unions non-government unions as well and so they do run >> so unions run California basically spec give me a specific three unions is one going to be the teachers union >> teachers union which means that now the educa so let's look at the outcomes we spend nearly the most of any state um The Newsome brags about it. He just did his budget last week. $28,000 per student per year. One of the highest in the country for the worst results pretty much. We have now 47% meet basic of K- through2 students meet basic standards in English. With math, it's 35%. 65% don't meet the standards. When you look at Latino and black kids, it's even worse. Most money worse results. Why?

[00:07:44]Because the teacher unions have a lock on anything to do with education and they've completely distorted the system.

[00:07:52]So it's not about education, it's about indoctrination. And that's not some exaggeration. You go to their conferences and you see what their sessions are about and their training and all the stuff they're pumping out.

[00:08:02]It's it's ideological indoctrination.

[00:08:05]It's it's it's colonialism and gender extremism, all this stuff. Meanwhile, the kids don't get taught to read.

[00:08:13]You've got techniques for teaching kids to read that work that we've seen work elsewhere. The debate over that was settled decades ago. Phonics, it's a technique for teaching kids to read.

[00:08:24]Barely used in California public schools because it's the teachers don't like it because they think it's racist or something, you know? It really is. It's not every single thing, but the but the best answer to your question is the unions.

[00:08:35]>> So, okay, if we say unions, right, and and teachers unions, number one, you got a couple other unions there as well. uh what >> it was a big driver of the budget crisis >> for sure but one of one of the biggest things that helped if you look at the five monumental moments in Trump winning in 2024 one is Bobby Kennedy joining his camp massive we'll never forget Arizona he walks out with Charlie Kirk turning USA that's one right >> uh you can see the event at Butler that was definitely number one okay >> and then you have to put and as much as this may seem like a small one is when Shawn O'Brien the president president of Teamsters >> came out and spoke at the convention and he was going to talk something and then they they said no we need you to submit your PowerPoint to proven and he called Susie Wallace says I'm not speaking he says just call the president I don't care what you say he even said something I don't give what you say just say whatever you want to say and he got up gave a speech bashed a couple got off the stage but it was the first time in 120 something years that a Democrat didn't the union didn't support support the Democratic party so for you to win in a state like California, what are you doing to win over the union? How do you do that? Do you go and sit in front of these guys and try to get or is it an impossible thing to do in the state of California?

[00:09:48]>> Well, you look at the there's, you know, of course, two categories, the government unions, non-government unions. Um, and and in terms of the lock on power, one way of thinking about it is uh to to using Gavin as a proxy for Democrat politicians. Remember, it's 16 years now of one party control. 16 years continuous all the statewide offices twothirds majority in both chambers of the legislature um all the big cities and the counties state supreme court 61 democrat >> isn't representative even more than 2/3 it's like uh >> in the in the legislature >> isn't it 40 43 to9 >> yeah no it's more but I mean at less is what gives you the >> minimum to be able to do whatever they're going to do >> so so they call it super major so 16 years of that in those 16 years Gavin Newsome's been you know eight years asutend the governor eight years as governor. You look at his donations as a kind of proxy for Democrat politicians and the categories number one category of donors to Gavin Newsome government unions uh non-government unions number three and so they control the politicians and that that's representative of the ones in the legislation or the other Democrat politicians. So they drive it and it's the government unions that are the biggest and that drives the budget crisis because you get over the years all these it's not the only reason they've just massively increased spending. They've doubled spending in the last 10 years. The size of the budget in California is nearly doubled.

[00:11:15]Um but the unions of course are you getting these luxury pensions and health care deals and all these things. Okay, here's another thing that I get on the road the whole time. We're doing town halls up and down the state, hundreds of people coming out, bigger and bigger crowds. A question I get nearly all the time from parents. We pay all these taxes and yet we're being asked to pay for school supplies to chip in as parents to buy books or pay for pens, >> but we pay the highest taxes in the country. What's going on? What's going on is that 19.1% I think of of school districts budget goes straight out the door to pensions. nearly a fifth before spent any before anything is spent. So the the government unions are definitely the bigger problem. No question. You look at the prison officers, for example, another huge donor, the the corrections union. I mean, they've got this massive prison closure program in California, which is a whole story in itself, a big part of the story on crime is that because they've released tens of thousands of dangerous, violent criminals into the community.

[00:12:18]>> Would any of these guys ever support you? Well, not the well, I don't think on the government side, but but the point I was going to make about prisons is basically they've cut the number of prisons and reduced the prison population nearly by half, but the budget's doubled. It's classic California, but this straight the budget has doubled >> if the amount of people is split.

[00:12:40]>> Yeah. Basically, so it's it's classic.

[00:12:42]Um if you look at the non-government unions that for example involved in construction I think that's where you're right there should be an alliance because all my career every I've been you know when I was on on Fox I the theme of my show was I called it positive populism. I wrote a book, Positive Populism, about how we need to, you know, the ideas that drove that populist movement. Trump, and you can see on the left as well, >> lifting up workers, working people who've been left behind by the policies we've seen before. 100% that's where I'm coming from. And a lot of my the whole themes of my campaign, $3 gas, cut your electric bill in half, your first hundred grand taxfree, a home you can afford to buy, very much with workers in mind, workers and small business. That's really who I if there's there's one group of course you want to help everybody but that's really the focus.

[00:13:36]So I agree with you and >> I think you got to flip though. I think I think so because here here's here's the challenge right. So >> but the government unions I think they're part it's their machine. They've built this political machine. They they've got huge amounts of money >> a billion dollars a year in election cycles spent by the government unions.

[00:13:54]It's crazy. You did you see the clip of who who was the fellow the African-American fellow in the chamber that twice got up and got kicked out of the uh when when Trump was given the speech. You know which one I'm talking about where he was holding signs Elon Musk is a racist or he's this what is his name? He's got a unique name. He said something Al Green. Yeah. Al Green.

[00:14:14]>> Oh yeah. Yeah.

[00:14:15]>> You know what Al Green said yesterday about Trump? Uh the first time he met Trump what he told him. Did you Did you hear this, Rob? Can you type in Al Green first time meeting Trump? Al Green, first time meeting Trump. He's telling the story. The guy asked him a question.

[00:14:28]Maybe it's the lady. I just saw what he said. So, what was your reaction the first time you met Trump? He said something very interesting. I wish I wish I saved this. That could have been it, Rob. That could have been it. Go a little bit lower. Zoom in a little bit.

[00:14:40]Yeah, this is it. Watch what he says here. Go for it. Turn on the audio.

[00:14:45]>> Have you ever met the president in person?

[00:14:47]>> Yes, I've met him. And what is that meeting like?

[00:14:51]>> Well, let me tell you. I'm glad you mentioned it. The president that I met, first time we met was right here in Houston, Texas. Watch this.

[00:14:57]>> When he landed uh and uh he left, he deplaned from airport one. And he and I talked to each other. He took my hand.

[00:15:07]Pass your hand over. Show you how to He took my hand and said, "You're going to like it.

[00:15:11]>> You're going to really like me."

[00:15:12]>> Yep.

[00:15:13]>> Those were his words.

[00:15:14]>> Okay.

[00:15:15]>> Very personable. Very personable guy.

[00:15:17]>> Okay. You can pause it right there. So So you know you know why I wanted to play this clip? Here's why I wanted to play this clip. There's something unique about him that I don't know why he's convinced he can flip everybody.

[00:15:31]>> Yeah.

[00:15:33]>> Whether it's him growing up early on in church, he used to go to Normand Vincent Peele's church. I don't know if you're familiar with Norman Vincent Peele. You know, the guy that wrote the book Power of Positive Thinking, which is a book everybody needs to. It's one of the first 50 books I've read in my life.

[00:15:46]>> He would go, "So, the idea was positive thinking. I can convert him. I can convert him. I can convert him. You have that level of optimism. There's something very unique about your energy and your personality which is attractive.

[00:15:58]>> So to me it's you know what what what do you what what is your what is your strategy to go talk to these guys that there's a 99% chance they're going to say screw you Steve. We hate your type.

[00:16:09]You're a Republican. You're the enemy.

[00:16:11]You're a conservative for you to say look you may not like me on all my policies but I think you're going to like me because I want to make the state better. Well, that is how I am. Um, I get along with I do get along with people. I mean, that's exactly why I'm very interested. You that's how I think and I think it's obvious to me. Let's just go back to the workers point and unions as a focus. Like, it's so obvious that these 16 years of Democrat policies, if they think, yeah, the Democrats, they're my guys, have just been a disaster for the average working person in California. More for them than anyone else. the rich people can can kind of deal with it. I'm leaving now as well, of course, because of this ridiculous insane billionaires tax. I'm sure we'll get into that. But for regular working people, I mean, look at the gas, you know, it's exactly those people who are being hurt the most. Who does gas price who's hurt most by these insane gas low middle- inome regular driving their trucks 2, three, four, five hours a day for work? That's who really is suffering. And that's the point I make the whole time. And I f and when when I'm in those communities and we do events there and I go to and I and I love doing events and meeting you know restaurant owners and bars and just regular places like that and it's blueco collar workers often that I mean we were just chatting before the show about you know who comes up to you and who says hi it's often workers I think I think California needs a guy like you that's optimistic that gets out there but I I I'll tell you this one part because as the audience in California is watching I call it California all the time. The reason why I call like California is listen, you want change, get behind somebody, do the work. You got to go do the door knocking. Find a candidate.

[00:17:50]>> Support him financially. Support him with your community. Support him with, "Hey, I like this guy. I support this guy. Go put your name out there."

[00:17:56]There's been a lot of guys that have endorsed you. I think the president endorsed you.

[00:17:59]>> Yes.

[00:17:59]>> I think Peter Teal endorsed you. I want to say Joe Londale from Palunteer whom he we had on endorsed you. There's been a number of people that have come out that have said they want you to be the governor of state of California. But I want to talk about this and I think the audience is going to like this. Uh, you said you want to lower taxes for those making under $100,000 to zero. Okay. So, I want to read some of these numbers up.

[00:18:21]>> State income taxes, which is a good amount to zero. So, >> I looked up with Rob and I what percentage of Californians make less than $100,000. That's about 70 to 75% make under $100,000. And I said, tell me how much revenue >> Yeah. The government collects from these folks, which is mainly the 17 and 70 to 75% that make a less than 100,000. It's about 12.5 billion >> to $25 billion low highend on how much income revenue they collect. So your policy will eliminate that. By the way, that's not controversial policy cuz Katie Porter duplicated you. Other people want to do the idea that you imposed. Let's go to the next one. Then you want to lower the 13.3 to 14.4 afford that they have right now to seven and a half flat tax which is a flat tax that you're introducing which a lot of you know people that are independent libertarians Republicans would say hey we love the idea of a flat tax right Milton Friedman this has been talked about if you cut the tax flat tax you end up taking the revenue that they're collecting about 120 to$129 billion of revenue from income tax they lose another $65 billion >> yeah that's we that's our number >> so if we go and we eliminate under$100,000 And then you lower the 133 to seven and a half. You lose another 60 to65 billion. So now you got 75 billion of revenue that's gone give or take. Where are you going to take the $75 billion?

[00:19:47]>> That's interesting because our number was 60. I I did some um basic costings on this just like that with um I was for a while when we moved here uh 2012. I was at Stanford teaching at Stanford for a couple of years and and I was also a fellow at the Hoover Institution. I worked with some of the people I knew there some of the economists to do a basic costing and our number was I think 65 billion for the whole package. So >> was that 10 years ago?

[00:20:11]>> It was last year.

[00:20:12]>> Oh, it's last year. So if you do less than 100,000 >> So that's that you're right. It's a big it's a big number. And the other the other way of looking at it was I remember when we did the math. This is last year. We have we haven't actually updated it for this year's budget. But when I because I didn't want to say something crazy and unrealistic, of course. Yeah. You >> But by the way, this is a great idea, but where does that money go? So, so we had a we had a revenue reduction of 18.5%. That was that was at the time when we did that costing last year's numbers, that was roughly what it was.

[00:20:42]And and here's the way I put it. This is not some crazy thing. This is taking the budget back just a couple of years to to roughly what it was before the pandemic.

[00:20:51]Remember, they've nearly doubled the budget. The budget this year that that Newsome submitted, $350 billion. the one >> can you go to California budget last 10 years >> it was 180 billion not that long ago it depends where you look at it there's the um >> yeah there you go so it went from 2017 2018 124 to 250 billion >> general fund and then there's these other the total budget includes these special funds bond and and things like that so you get 350 billion is the total so I think the the comparison is 180 to three nearly doubled 180 billion to three >> what should he put there so we can look at that instead of saying general fund >> total budget >> putal Total budget, Rob.

[00:21:31]Total budget.

[00:21:37]There you go. So, 350 billion is what they proposed this year. And you go to 2017, 2018, 177 billion.

[00:21:43]>> Exactly. Doubled in 10 in in less than 10 years, >> right? And everything's worse. I mean, really, that's not an exaggeration, some political statement. Everything's worse.

[00:21:52]You mentioned homelessness. You could go run down the list. Um, I mean, I don't even want to do it now because I want to get to this point about the budget. In other words, it's just bringing it back to some level of sanity. Um, so there's a there's a general point that they've doubled the budget and everything's worse. Surely we can do better. Getting specific about it, the first place you look, of course, is this phrase that's become very wellnown, rightly so, fraud, waste, and abuse.

[00:22:19]when you get specific. So, at the beginning of this year, I set up something basically as part of our campaign. It's a volunteer thing. It's not an official We're not I'm not elected yet. Cal Doge, California Department of Government Efficiency, Borrowing the >> um >> borrowing the uh the name Trump.

[00:22:37]Exactly. So, so we we um set that up >> that There you are. And so we've done a number of fraud reports and there's a couple of specific ones we can get into, but I'll start with the total.

[00:22:53]We made an estimate. Our fourth fraud report was an estimate of the total fraud, waste, and abuse in the last 5 years. We looked at it over five years because these programs >> often have that kind of lengthy characteristic to them. our estimate based on published data. So, a combination of things like the state auditor report that says $ 24 billion of homelessness spending was wasted, um medical error rates, etc., etc. We looked at all this published data. Our estimate for the total is $425 billion in the last 5 years. That's about >> 80 billion a year. 85 billion a year.

[00:23:26]>> Yeah. Roughly exactly about and about 20% of the budget. And so, >> Got it.

[00:23:33]>> That's where you start. But of course, here's another example. One of the things on the debates, you may have seen some of these exchanges. I've called for freeze for suspending the gas tax and over time reducing it. We have the highest gas tax in the country, the worst roads in the country. Another classic >> 71 cents.

[00:23:51]>> Another the 63. It's just gone from 61 to 63. The gas tax >> gas tax in California.

[00:23:56]>> Yeah. So, >> can you type in top 10 g highest gas taxes in America by state?

[00:24:02]So >> it's amazing what California >> Javier Bera who looks like he's going to be my opponent in the general election >> 71 cents.

[00:24:09]>> Oh that must be including something.

[00:24:12]>> Yeah, trust me. I'm trying to help Californians so much that I follow the numbers super closely.

[00:24:17]>> Yeah. Why would I think 61 to 63 that's better? It's higher now. So it could raise in the last 24 hours. Yeah. Um he always says this, Steve, if you cut the gas tax, how are you going to pay for roads? Because that's where it's supposed to go. Well, first of all, we have the highest gas tax and the worst roads on one some of the measures. On one measure, we're 49th out of 50 on roads. There's another where we're 50th.

[00:24:40]Um I was talking to a contractor. I talked to business owners the whole time. She This lady runs a big company doing public works construction, builds, literally builds roads. She told me it they operate in multiple states. It costs four times as much to build the exact piece of road in California as in Texas. Four times as much. So that's not what you would call So when when you look at this the the $425 billion number for fraud, waste, and abuse. That's specific programs where you can literally find things that shouldn't be spent at all. For example, I give you this actually this connects to the gas tax. There's a program um that's been running for over 10 years, started in 2015. It actually gets money from the not ne not necessarily the gas tax, but the the cap and trade system for part of their climate policy, some climate change mitigation fund or whatever. So, but it's basically from your what you pay for gas and it's in this program was supposed to install um solar panels on lowincome apartment buildings $und00 million every year >> since 2015. So, $1 billion total been spent. We we looked at where that money's gone. Of that $1 billion actual spending on solar panels, 72 million.

[00:26:01]>> 928 million going to these nonprofits.

[00:26:04]this this one exactly um uh going to you know Democrat nonprofit environmental justice campaigns all this [ __ ] and so that's an example of out and out that just shouldn't happen just stop it stop spending that money the roads is not even included in that 425 billion total the 425 billion estimate over 5 years roughly 85 billion year is things like this the fact that the roads are four times more expensive to build that's not even included in that right Why is it four times more expensive? Because they layer on all this nonsense. For example, what we mentioned earlier, it's public works. It's public money. So, you have to do prevailing wage union members only, community workforce agreements where you have to hire endless nonsense.

[00:26:50]Environmental reviews, audits, inspections, fee. This is what's going on. The the amount of bloat and nonsense people have to deal with on a small scale. Lady, I met a lady. She runs a small independent winery, wine country, Sonoma. I think it was either Sonoma or Nappa. She she she told me she just wanted to expand her patio for more guests.

[00:27:13]>> Mhm.

[00:27:14]>> From 30 to 50 guests.

[00:27:15]>> Yeah.

[00:27:16]>> It took her six years, a million dollars, fees, permits, environmental reports. She had to pay for all this.

[00:27:25]That story is typical. I tell that story to other business owners. Oh yeah, I've got one like that. There just everything is layered on to make it so expensive.

[00:27:35]And so that's why that budget is so high because everything costs so much because of this insane overregulation. And a lot of it is driven I mean if if if you ask me like where's the real cost and hassle of doing anything in California comes from come from basically over the years I've been studying it now and traveling the state and meeting businesses and and regular people. It's really there are three underlying drivers. The unions, we've mentioned them. The uh the second one is litigation. Lawyers, endless lawsuit costs, huge litigation.

[00:28:12]Everything's a lawsuit. Like there's an estimate that insurance policies, for example, that's one of the big issue, one of the most, you know, annoying things for people. You can't get insurance. So, it's so expensive.

[00:28:20]>> The Fair Act or you sign like the insurance homeowners insurance leaving >> regular home. They've left the state.

[00:28:25]But one of the reasons is you've got this massive insurance um litigation risk. It's called the tort tax. Some people refer to it. Um an estimate of 3,000 to 15,000 just the cost of litigation that the insurance companies have to deal with. Um and then >> what do you mean by this tort tax? So insurance companies are having to pay this.

[00:28:43]>> Yeah. They it's it's a >> zoom in.

[00:28:45]>> It's a it's known as that. It's a exactly >> a term used to describe how excessive litigation and legal system abuse infiltrate insurance premiums raising cost. So insurance companies are already adding this as a cost that they're probably going to get sued. Yes. And so because of that, they raise their rates to be able to profit or else what's the point of being the state of California.

[00:29:04]>> Yes. A lot. But everyone has I was at a small manufacturing place. He was saying they have to put aside millions of dollars a year for for lawsuits. I mean, endless lawsuits. There's um Oh my goodness. I don't I want to do the sort of headlines and then get maybe dive into it. So the three big drivers of of all the cost and nightmare of doing anything in California is uh unions, lawyers, trial lawyers and and all of this litigation. And then the third is the climate agenda as they call it. The the climate stuff is really driving a lot of this. The obsession with meeting this net zero 2045 goal, totally arbitrary, actually makes no difference to the actual climate. It's not, you know what I mean? So, well, I mean, the report came out this last week that Trump tweeted saying that was all BS. I don't know if you saw that or not.

[00:29:52]>> I didn't.

[00:29:53]>> You didn't see this? Oh, you you're going to have to see this for to be able to use it while you're out there. Rob, do you have the story of uh what uh you showed it a couple days ago on the podcast? I think you had to tweet. Yeah, it Trump literally came out and the claims of the RCP 8.5. If you want to go back, you just had it right there, Rob.

[00:30:12]Go back to all right there. Fact check.

[00:30:16]There was a tweet that came out about this that climate change they got the numbers wrong and they were claiming that it was all this that we have to be worried about.

[00:30:22]>> Oh, I did see a report of that. Yeah, I just didn't see what the president said.

[00:30:25]>> Yeah, the president tweeted about it says we were right all along.

[00:30:28]>> Um, >> well, even the thing about this after 15 years of Democrats promising climate change is going to destroy the planet of the United States. Top climate committee just admitted that its own projections of uh RCP 8.5 were wrong wrong far too time too long. Climate activism has been used by Democrats to scare Americans, push horrible energy policies, and fund billions into their bogus research programs.

[00:30:48]>> So, look, the and and the reason it's so important to focus on this again, these are examples of the bigger picture. They they layer this climate stuff into everything. So, we just talked earlier about housing costs. Gavin Newsome pitched these two pieces of legislation last year, AB130, AB131, as we're now solving the housing crisis. We're going to have abundance with housing.

[00:31:11]Fantastic. We're going to build more housing. And and the centerpiece of it was exemptions from that environmental law or I mentioned SQA for housing.

[00:31:19]Except you only get the exemptions if you use union labor. So already you're adding back in a whole bunch of cost from that. And the second thing is that because they've got part of the climate story is that they don't want sprawl as they call it. Because if you have sprawl and people drive more, that's bad for climate. So they've got this mechanism, this regulatory mechanism called VMT, vehicle miles traveled. It's a calculation that's put into permitting for projects.

[00:31:53]Um, if you want to build in this is in the new legislation that Newsome touted as the solution to the housing crisis. They put in a VMT charge that goes this an actual cost that's paid basically a tax if you want to build a new single family home.

[00:32:12]The cost of the VMT that they will put in the developer pays it obviously go then goes to the price the purchase price $325,000 over 20 years just for this extra.

[00:32:27]So like the climate stuff is just embedded in every obviously in obvious ways like gas prices and of course gas prices affect and diesel affects business you know delivery costs all of that it's why groceries are the highest in the country >> um electric bills more than double the national average with gas prices we're the highest in the country higher than Hawaii in the middle of the Pacific Ocean even though we have abundant oil reserves um >> and can you can you >> electric bills we're the second highest only to Hawaii we have gas fired power stations in California, natural gas fired power stations that are deliberately being run at 10 to 15% of their capacity >> because they're only being used as backup for wind and solar. So, we've basically got these this infrastructure for energy that we're not using. And we and we have abundant natural gas in California that is just being kept in the ground. And we're now importing nearly 80% of the crude oil we use and 90% of the natural gas.

[00:33:27]>> Where from? Where are we importing?

[00:33:29]>> I can tell you I was just at a refinery.

[00:33:30]So for crude oil, >> it's coming mainly from Iraq and uh South America, the Amazon rainforest. We're in Ecuador and Brazil.

[00:33:42]So we >> we just when when New was in Brazil for the climate conference, the the latest data came out. But we're now buying half the oil that's being drilled in the Amazon because it's heavy and the refineries it's it's particular kind of crude oil that fits the refinery that's like California or it's heavier. So we so in the name of climate change California is driving an expansion of oil drilling in the Amazon rainforest.

[00:34:09]So that's the crude oil. The refined gasoline is worse than just the crude oil because they've shut down the refineries because there's not enough business for them and because of the cost of doing anything. Um we're now importing not just crude oil but refined finished gasoline. We use about 800,000 barrels a day in California. Uh we we're now only refining about 550,000. The rest is being imported. That's coming from mainly India and South Korea. Where does India get its oil? Russia. So, in the name of climate change, California is now funding Putin's war machine. It's just insane.

[00:34:48]>> That, >> by the way, here's another thing. This oil and G, whether that's crude oil and finished gasoline that's being shipped halfway across the world, those ships run on bunker fuel. It's the most polluting form of transportation you can imagine, the dirtiest form, spewing out carbon emissions. these ships when we could be sending it in a nice clean pipeline couple hundred miles from Kern County near Bakersfield where Bakersfield is where I literally was there last night. I was in Bakersfield last night, the heart of our oil industry.

[00:35:18]>> Hadres Hotel, you were you at uh >> I I didn't stay the night cuz I was on a flight to come here. But um but the so instead of taking it in a nice pipeline to the refineries in Long Beach or wherever in a ship 7,500 miles across the ocean spewing out carbon emissions to make all that insanity work. Here's another car. There's an the regulatory agency for for a lot of this stuff is called Cobb, the California Air Resources Board. They're insane about making businesses report on their CL carbon emissions through the supply chain. Like you got to account for your carbon emissions. Except for this, they only count the carbon emissions for these ships bringing the oil once they're 12 miles off the coast of California.

[00:36:02]Then, so 7,500 miles, ignore it. 12 miles, that's when they start counting the carbon. Just it's crazy. They are actually increasing carbon emissions in the name of climate.

[00:36:14]>> What are you going to do the day? Say you become the governor. What are you doing the day you get you become the governor? What?

[00:36:19]>> So, it's gonna be a very busy first day.

[00:36:21]uh because one of the things that that um I think well there's many things I'm doing differently in this but one of them is being really wellprepared because I do actually understand how policy works, how government works. I've got experience of that and I'm a business-like person. I wouldn't be practical specifically on this one.

[00:36:39]Here's a good example and and and it goes back to what you're saying what we were discussing about the legislature and the supermajority and what can you get done because there's all these Democrats controlling the legislature.

[00:36:48]There's a huge amount you can do just through your control of the executive branch and these regulatory agencies.

[00:36:55]Opening up oil production is a good example. So the way that they've shut down oil and gas production in California is not actually the legislature is through an agency called Cal Gem, the California Department of Geologic and Energy Management. And they have refused to um uh issue permits. And I've seen it. I've been to the oil fields got these just like that that you're looking at there.

[00:37:19]>> Mhm.

[00:37:20]>> And they're much bigger as far as you can see or oil wells and they just refuse to issue permits for maintenance.

[00:37:28]You need a permit for everything. If you want to do routine maintenance for expanding an existing well that's maybe running out of oil. You do you I think they call it side tracking. You can expand it and get the output up from five barrels a day to 100 or whatever.

[00:37:43]or drilling new wells in existing fields. This is not drilling an oil well in the middle of Yusede National Park.

[00:37:49]This is literally like as far as you can see oil wells. There's a concrete pad ready for some new wells to be drilled in the middle of the oil field and they're saying no. So actually that's something where you could turn that around. I don't want to say overnight, but you put in new people. I'll be ready to go with the new people you're going to appoint to this agency. names any names of people that >> we're just we're gathering the names now. Um I have I have named someone who I would appoint to be the natural resources secretary that sits above all of this guy called John Dwarti who was a member of Congress and very thoughtful on water pol because the these resource issues are real drivers of the of the problem in California. The fact that we're killing our a industry by refusing to give farmers the water that they need. this issue of oil and gas. So that comes under natural resources. So we're gonna have someone who believes in actually, you know, producing in abundance what we have. This is the point about California. We've got everything we need. We have incredible >> natural resources, human resources in terms of the energy and hustle of our people. And it's all being crushed by this bloated nanny state bureaucratic government. Now what what you know some people may say well look you're you're a Brit. You're from UK are you running because >> I'm American now I have UK is the equivalent of California and London is the equivalent of LA do they have a lot of things in common? What patterns do you see? Is the California on track to be what happens to UK? Yes. Do you okay share that with us what what perspective do you have?

[00:39:24]>> It's very interesting. a very serious um venture capital guy sent me a report um must have been about six months ago on the UK and he literally just put on the email remind you of anywhere and this report was going through um just how impossible it is to do anything in in the UK to build housing to to increase energy infrastructure to build any kind of infrastructure and it just went through this the incredible bloat the regulatory bro the process taking so long for anything. It's exactly where we've got to in California. And that's why we have this situation where right now you've got these two things going on. So Gavin Newsome's response to anything when he's challenged on everything going wrong in California, his go-to response is, "Well, we're the fourth biggest economy in the world, so things must be great."

[00:40:15]That's true. Statistically, we are the fourth biggest.

[00:40:17]>> But the remember, well, that's the just the total GDP that's driven mainly by two things. We got a a small number of giant tech companies that are great and I want of course I want every business to thrive in California. So I'm huge supporter of our tech industry like all our other industries. That's great that we got these companies generate huge amount of revenue but not many jobs. And then the second component that driven up the GDP number is the that includes the government. So all this increasing government spending that increases your GDP but it's not a healthy way to increase your economy. So at the same time as having the fourth biggest economy, we are we have the highest poverty rate of any state tied with Louisiana.

[00:41:00]>> 28% of US homelessness is in California massive poverty rate is the highest in the country tied with Louisiana.

[00:41:08]Unemployment 50 with the highest in the country of all 50 states.

[00:41:13]>> I think the District of Columbia is slightly higher but in terms of states we have the highest unemployment rate.

[00:41:17]>> So that's not a healthy economy. I mean, most of the jobs that have been created since the pandemic, I believe the net job creation in the private sector is almost zero in California. It's government and stuff like that, healthcare. And so, you've got a really unhealthy economy because it's just so impossible to do anything. And that's exactly what you're seeing in Europe and in the UK. I mean, one of the things I say, I mean, I became we moved here 2012. Uh, I became a citizen 2021 and and this you look at what's going on in the UK, but I've now renounced my UK citizenship. I just want to be clear that I'm all in for >> this country and and and California. But but I actually truly feel this on an emotional level. I don't want to see California, the way I put it as I'm I'm fighting to make sure this state that I love does not turn into the country I left. You don't that is a really bad and that is the path we're on. No question.

[00:42:15]>> What what do you see happening right now with UK go specifically to UK?

[00:42:19]>> Well, I haven't spent much time on it.

[00:42:20]What I really don't understand >> you were heavily involved. You you were there. So you saw the invasion when it was coming in. It went from 1.6 million to 2.7 million cuz I think Cameron went in when 2010 >> 2010. Exactly.

[00:42:34]>> 2010 and then it skyrocketed. So what patterns did you see? What mistakes did you see they were making? And is it just >> so this is where we really fell out because because he met he he we I was very much part of the I was senior adviser. I was I was the guy.

[00:42:49]>> Yes.

[00:42:50]>> Strate and everything is smaller and more of a shoestring in in British politics. So there's not much money there and I basically did a number of jobs the strategy policy communications the whole thing.

[00:43:00]>> Um and we had a commitment I think I'm getting this right in going into that 2010 election. this was his per he particularly um it was his idea actually to say this make this commitment net migration into the UK to bring it under 100,000 a year that was the that was the pledge that we made and it was David Cameron's idea I think that's right 100 net migration under 100,000 a year and one of the main reasons that we are never achieved the pledge Yeah.

[00:43:38]Yeah. Hundreds of thousands to tens of thousands. So, one of the reasons that that was never met and it was very clearly explained to me, we had a policy, we you know, this was a policy commitment. So, of course, you're there once once he became prime minister, you're in 10 Downing Street, you're you're really focused on delivering your promises. One of the things we kept look why why you know we said this is it happening making you know checking on progress on this particular one I remember a meeting where the the officials the bureaucrats came in and said look basically said you're never going to achieve this target as long as you're in the EU impossible because of the free migration rules within the EU never going to be delivered one of the reasons that I was in favor of Brexit that's when we really fell out I'd left the UK by Then we moved here in 2012.

[00:44:31]Brexit was a 2016. That was one of the main reasons because he'd made this commitment and the the his own government officials said you can't meet this commitment as long as Britain remains in the Now the really crazy thing which I just don't understand. I haven't I wasn't there 2016 Brexit was voted on. Few years later, three years later, finally they did the deal. They left under Boris Johnson eventually. But it seems to me that immigration just went up the the central argument of the Brexit campaign.

[00:45:05]>> It was a fail. It was a failure. He failed.

[00:45:07]>> Massive. Well, the the first stage of failure was when the UK was part of the EU. It was a failure. And the and the government officials really looking at the issue of immigration said you you're never going to meet the target when once as long as you're in the EU. Then the UK left the EU Brexit and the and the main argu I mean there's lots of arguments for Brexit but if you really ask people who are involved there and whatever the the c the biggest one was immigration controlling our borders that was really if there's one thing that Brexit was about it was that and yet since Brexit the pro I think it's accelerated yesterday tweeted saying our net migration is the lowest it's been in years. I don't know if you saw that.

[00:45:54]>> I didn't see that. He tweeted yesterday saying, "Our net migration has been the lowest in years and we're still got some work to do." Go right there. Go 4 hours ago. Rob, go. Yeah. Net migration has fallen 82% the last 5 years. I promise you to restore the control of our borders. My government is delivering. I know there's more to do. We're introducing scale-based migration systems that rewards contribution and ends our resilience on cheap overseas workers.

[00:46:17]>> That's exactly what the Conservatives used to say. I mean, that exact message, but they didn't deliver it. Johnson.

[00:46:24]They had those prime ministers that lasted about five minutes.

[00:46:27]>> You're so you've been in a space of knowing you want to get things done and it's hard to go through the gridlock of >> Yeah. Yes. And this is one of the things.

[00:46:35]>> How do you do that then in California?

[00:46:36]>> Well, because I've seen how it work. I mean, I'll give you a specific story of of that really opened my eyes. I It's a silly story, but it it it kind of showed me. So one of the projects that I led um initiated and led was we called it the red tape challenge or something like that to reduce bureaucracy in the UK.

[00:46:55]This is going back must have been when was it 2010 you know around that the first I was only there for two years. Um there we are. So I'm say look at that.

[00:47:07]This feels like ancient history but there are Steve Hilton was the primary architect of the red tape challenge.

[00:47:12]Right. So the the idea was to it's actually the technical term for it now you would you would say it's reverse suns setting where we all know about suns setting regulations you pass something you say this only lasts for 5 years unless we renew it it expires I wanted to have a concept of reverse suns setting where we just take the whole stock of regulations that on the books and change the default so instead of saying we're going to get rid of this one and get rid of that you basically say we're going to get rid of all of it let's choose the regulations that we want to keep that was the concept Um I remember and we had input from the public we crowdsourced some stuff what and then we started having the meetings with the official the bureaucrats and the civil servants and we divided up the whole regulatory code into different sections like about 29 different categories. the first set that we looked at consumer protection. I remember we had this big meeting. They all come in the room um dozens of of different um uh government officials leading the different bits of the relevant departments and there's a lot of paperwork on you go through the packet and I remember I just went I just didn't want to just go in order. I went into the middle, picked something at random, and it was colorcoded and I can't remember which way round. Red, green, and most was one color. And I said, "Oh, that's great. So, that's what we're getting rid of." No, no, that's what we have to keep. Okay, that's not the point of this exercise, but still, let's look at one of these. It was men's pajamas.

[00:48:44]Just randomly, I just What? Why do we have to keep the whatever?

[00:48:49]There's the guy around the table who was head of the whatever apparel division.

[00:48:54]We have a 40minute discussion about the regulations on men's pajamas. Stab it.

[00:49:00]And then at the end, this is I'm not making up. He says, well, I don't want to mock the voice. He said, "If anything, the public interest demands that we level up regulations from a gender equality perspective because the regulations for women's pajamas are actually lower than for you. Just think, I can't believe it. We've spent 40 minutes talking about one thing out of thousands." And it's at that point I realized you can't do it this way.

[00:49:29]You'll never beat them at that kind of game of process and paperwork because they are better at how do you beat them?

[00:49:36]There's more of them. They wait you out.

[00:49:38]And I'll tell you another story that fits with this. Before the 2010 election when we uh came into with before David Camry became prime minister, you know, London's a small town. Everyone is very centralized. Everyone knows each other.

[00:49:51]And we had a lot of friends overlapping with the former Labor government of Tony Blair. Tony Blair who really was a reformer. Um, and we ended up having a meeting couple of months before the election, myself and Tony Blair. And he said this incredibly interesting thing.

[00:50:10]And he'd been out of power for seven years by then, I think, or something like that, maybe bit less. And he said, "Look, there's just one thing you need to understand. All these senior officials around you, number two, they're very smart, very good people.

[00:50:24]But you've got to understand that they believe that it is their patriotic duty to stop you from doing whatever you want to do because they see themselves as the guardians of the national interest.

[00:50:40]>> Yeah.

[00:50:40]>> And and their job is to stop these idiot here today gone tomorrow politicians from doing their thing. He said, "You've got to understand that." I didn't understand that till too late. And putting those two things together and looking at California today, the only answer actually is to massively reduce the size of these bureau and just the because if there's fewer people doing less, there's less capacity.

[00:51:07]>> Easier said than done. I mean, the Doge idea was a idea that everybody supported until they try to implement and then they stopped it four or five months.

[00:51:14]>> Yeah. But look in California, you got a couple of things. First of all, it's in a sense more manageable because it's you can get your arms around it to a certain extent.

[00:51:23]>> Some would even say it's harder because you got 43 to9 on represent. Like how are you going to pass it when they got control on the majority on both >> the governor sets the budget.

[00:51:31]>> Okay.

[00:51:31]>> Right. That's the first that's the main policym vehicle.

[00:51:34]>> Who do you need to approve the budget?

[00:51:36]>> The legislature. You work with the legislature. You have a line item veto.

[00:51:40]Yes, they can overturn a veto 23 majority.

[00:51:43]>> Yeah, I know. But let you write the budget. you submit the budget. That's the first move. A lot of that will be right at the beginning in January next year.

[00:51:51]>> Um yes, you negotiate of course, but let me just get to the point that >> um you you run the executive branch. You run these agencies. You appoint people to them and you can direct their work through executive orders. It's true that a lot of it is set up through legislation. You can't just delete legislation you don't like. But actually when you look at some of these bureaucracies that's why you got to do the preparation work many of them have way exceeded what they were set up to do by the law in California. So you look at the carb the area we mentioned them they're driving a lot of this climate stuff the EV stuff and and and mandates for everything the vehicle miles travel a lot of that is there's there's a way of looking at it that the most destructive agency has been this one carb the air resources board that it's been around for long before climate was the big driving ideological thing for the left and so we we just made an announcement so I I go back to Cal Doge I spoke about the fraud reports that we've done. We've done five different fraud reports. We also did didn't we've only done one now, but we're going to be doing more of them. What are called bloat reports where we're looking at the structure of the government. The first one we did was nearly two weeks ago now looking at the regulation of electricity in California.

[00:53:10]>> We have four separate agencies regulating electricity. public utilities commission, the energy commission, something called Kaiso, the independent service operating and carb, the air resources board. Um, if you look at it on a per capita basis, California has 35 times the number of bureaucrats regulating electricity as other states.

[00:53:32]35 times the number, just the numbers of people. The cost of that is $1.2 billion before you even generate any electricity. So we obviously there's massive scope to merge them. That's what we've proposed to get to massively scale back these agencies. You can zero out their budgets or reduce them to very little. Yes, they can override that with a veto in the legislature. There hasn't been an override of a governor's veto since the 1980s in California. It's actually kind of a tough thing to do because as the governor, you've got the platform. They they then have to defend it. And so if you're really aggressive and you're well prepared, and I'm both of those things, I'm not saying it's going to be easy, but I think the real learning point for me from what happened in the UK was you've got to be ferocious about this.

[00:54:20]>> Yeah. I I I think when I went to Brazil and I was with Javier uh Yayer Bossonado and his family, and we did a three-hour interview. At the end of the interview, they came in, tapped on his back, they says they're getting arrested. He had to finish the interview because he was getting arrested. Wow. Rob, you remember this when we were in >> where were we at in uh Brazil? What city?

[00:54:38]>> Brazilia.

[00:54:38]>> Brazilia. Right in the headquarters, you know, the the where all the politicians are. They build the city like a communist city so nobody wanted to go there miles away from everybody else.

[00:54:49]>> But the thing that we looked at there is how much the other side with this guy named Alejandra de Morz who was like the most powerful guy in Brazil. He's like the Supreme Court god that everybody fears. You've seen his face. You know who he is. They control Senate. a control house >> and he couldn't do nothing. Okay. And they fought very hard. So you're you're going into a market >> where uh you will be facing a lot of challenges and you're going to need some people that are going to want to have massive change in the state. Right now in the polls, if we look at the polls >> as of right now, I think you're at 21 points >> is where we have uh uh when you look at the polls, I think you're at 21. Yeah.

[00:55:28]>> I think 22 20 something like that.

[00:55:30]>> 22 is where you're at as of right now.

[00:55:32]Then you got Bera 21, then Styer 15, then Biano 5, and you got, you know, the rest of the camp, Katie Porter. But the reality of it is if one of these guys drops out, you're all of a sudden second by, you know, if you go to Koshi's report, Khi gives a complete different number if you go to Koshi.

[00:55:46]>> Yeah. For the winner. Yeah.

[00:55:48]>> Javier's at 65, Styer's at 237, and you're at 9.4%. And you know, Vegas doesn't lose money, and that's $35 million of money that's been wagered.

[00:55:57]>> Yeah. So you need some major major like Spencer Pratt word got out that Genie bus is supporting him. This person is supporting oh my god all these different people that are supporting him. Have you gotten some weird calls? Has Arnold called you? Have you spoken to some of these guys?

[00:56:13]>> I know Arnold well. I've known him for years. Yeah.

[00:56:15]>> Have you had a conversation with him recently?

[00:56:17]>> Not recently, but we will. We know each other well and and I know his team very well. Um >> do you have a relationship with Newsome as well?

[00:56:25]>> I do know Gavin. Yeah. No, I don't think it's a very cordial one anymore because I've been, you know, holding him responsible.

[00:56:33]>> Was it at one point cordial?

[00:56:34]>> Well, here's the thing is that we Yeah, because we we had some friends in those first two years that we were here. I taught at Stanford and we had some very good friends there who friends of friends of the Newsomes from a family point of view. So, that's how I know them. And um that's long before I had anything to do with California politics when he he wasn't governor then. Um so I think that what you're describing is exactly right.

[00:57:00]Here's here's how I see it. Right now we've got this governor's race which is because of this top two system which means that the top two candidates go forward regardless of party. It makes the whole thing kind of unclear and messy. And the entire conversation, not the entire, but a lot of the conversation is actually about math and who's in the top two and is it going to be two Democrats? Is it going to be two Republican rather than the merits and the ideas and and all of that once we're in the general election scenario, which we will be in a couple of weeks.

[00:57:36]>> Y >> and it does look like I mean I don't take anything for granted. I'm working even harder these last two weeks than the last year. But it, you know, we're feeling confident, but you know, still got to win it. People have to vote. But let's just assume I'm in the top two and there's one other Democrat. Looks like it's going to be Javier Bera. Then it's a very different contest. Then it's a real you got a clarity there. What are we going to do? Are we going to keep going with this another four years of the same direction? And by the way, there's no one who he Javier Bera who's their leading candidate right now. He's he's kind of the living embodiment of more of the same Democrat machine. He's 36 years a career politician. I mean, he's done nothing else. He's a creature of the machine.

[00:58:25]>> In the LA Mel race, you're already at that stage, this kind of gladiatorial uh contest because Spencer, it's just Spencer against Karen Bass. Basically, Nitia Ramen is really imploding. Um, and so there's a clarity there in LA, which we don't yet have in the governor's race, but soon we will. And I'm very confident that we'll get, you know, you're already seeing it. Um, people who've never supported Republic, I mean, Sergey Britain is a good example. He's he's he's supporting me. He's also supported and there's a lot of people who in California have bought this narrative that a Republican can't win. So the best shot is a less crazy Democrat. And that's why there was a lot of support in the business community for this guy Matt Mayan who's the mayor of San Jose, but he's gone nowhere. Um and so I'm I'm feeling confident that once it's me against Pacera or even even more so me against Tommy Styer, you're going to see a lot of support who from so many people who not not Republicans have said we can't go on like this. I'm definitely seeing that in LA.

[00:59:33]>> How how many big >> for myself, you know, Hollywood people, >> how many Hollywood people are calling you and saying, "Look, we a lot." And >> big names.

[00:59:40]>> Yes.

[00:59:41]>> Yes.

[00:59:41]>> That would be seen as a liberal.

[00:59:43]>> Yes. Yes.

[00:59:44]>> And they're saying they would like to support you >> and some have. I mean, some have co-hosted events for me and and >> such as >> Well, well, I I don't want to look.

[00:59:53]>> You said co-hosted event is a public name. So, it's not it's not it's not private.

[00:59:57]>> Okay. Larry David's wife. Okay.

[00:59:59]>> Ashley David. You know, Larry David is not by anyone's um >> standard of conservative.

[01:00:04]>> Exactly.

[01:00:04]>> Yeah.

[01:00:04]>> And there was and you know, so she that's absolutely there you are, Ashley.

[01:00:10]And so and there are others who I don't want to say because they haven't got to that point of saying it publicly, >> but they've called you and spoken to you.

[01:00:21]>> Yes. Yes. And we've had meetings and I feel and in the sports world as well actually. And I feel very confident that once we're past the primary and it really is that clear choice that it's going to be a whole different situation.

[01:00:36]And the whole thing that I'm saying is I'm not an ideologue. I'm not a tribal kind of person going back to where we started. I really am open, happy to sit down with anyone, work with anyone. It's just I mean that's an overused phrase.

[01:00:50]It really is just common sense. Let's just stop doing stupid things that make everything so expensive and so difficult.

[01:00:57]>> Did you Did you have a like when's the last time you had a conversation with Nome?

[01:01:01]>> We had a very brief conversation.

[01:01:04]I remember it actually is the at the the second presidential debate in 2024. It was held at the Reagan Library and they sent and the Biden people sent him in as a surrogate.

[01:01:17]>> I was there. It was a and he was going talking to everybody hand. He was talking.

[01:01:20]>> That's all right. Well, he was literally going on on um just just off the off to the side. We were both with Hannity that night. Um and so we had a quick conversation then.

[01:01:29]>> Did you whisper to him that you may run?

[01:01:31]Did anybody know?

[01:01:31]>> We didn't. We didn't. I actually I think we we actually ended up I I was still then working on the housing policy uh that we spoke about earlier. And if I can if I'm right, I think we had a brief conversation about that and then he connected me to one of his team members to maybe follow up on that and so on. Ho how dismal do you think his track record's been since he's been governor?

[01:01:54]>> Well, you just have to look at the facts. I mean, it's that we are the we are the worst performing state on every measure that matters. Like truly, we've >> under him.

[01:02:01]>> Yeah. I mean, you look at the how else can you describe it? I mean, poverty, unemployment, cost of living, and then, you know, more qualitative measure. So, US News and World Report ranks California 50th out of 50 states for opportunity. Think about that.

[01:02:16]Opportunity. I mean, that's supposed to be the definition.

[01:02:19]>> Last place for >> last place. Wallet Hub 50th out of 50 for affordability. Um, Chief Executive Magazine, they do an annual survey.

[01:02:28]California 50th out of 50. I think it's now 10 or 11 years in a row. It's just insane. Roads, I mentioned 50. It's not just that we're doing badly with our worst performer of all 50 states on almost everything that matters at the same time as they've doubled the budget.

[01:02:44]It's insane how badly that it's covered up because of course we're still an amazing state. I love California. We got the most incredible advantages. Natural beauty, amazing people, diverse. It's great. It's it's a wonderful place to be, but it's a very tough place to be if you're a regular working-class Californian. If you're running a small business, that's why so much of what I'm talking about is very practical stuff to help be first 100 grand taxfree. There's a there just small seems like a small thing, but it's a big deal to small business owners. Remember, I used to, you know, I started a couple of restaurants in London. Restaurant owners particularly hate some of this stuff.

[01:03:22]$800 a year they charge you >> just for existing. Every business in California has to pay a registration fee of $800 a year. Now that may not sound like a lot if you're of course and it isn't a lot if you're anthropic or Google or whatever. But if you're a small business and you're bar you're not making any money, you're just getting going. It's actually really tough. It's simple things like that that we just need to do to make life less of a struggle for everybody. Now what what happened recently? This is like a few days ago with uh Javier Bera's uh strategic Dana Williamson who used to be the previous chief uh uh of staff I believe for Newsome just got three felonies. This is just a few days ago.

[01:04:03]Yeah. What happened?

[01:04:04]>> So this is a really um >> big scandal.

[01:04:07]>> It is a big scandal. I mean it's little here's here's what happened. Basera was appoint he was the California attorney general. Um he was appointed by Biden to be health secretary HHS at the beginning of the Biden term. Basera wanted to take his chief of staff guy called Sha McCcluskey with him to DC. He was going to be too he was going to this the salary wasn't high enough and there was this guy wanted to come back and forth to his family and so they wanted more money for this guy to be able to go with Bera.

[01:04:43]the the the salary was the salary, whatever the federal salary is. So they cook up this scheme to take 10 grand a month from Bera's California campaign account, transfer it to a consulting firm for run by this person Dana Williamson, and then that money, that 10 grand, goes straight out the door >> to the guy's wife, to Shawn McCclusky's wife.

[01:05:09]So, it's like a backhanded way of topping up his pay.

[01:05:13]>> That's against California campaign finance law because the you can't use campaign money for anything other than campaign expenses.

[01:05:25]And it's against federal law because you can't get income from another source.

[01:05:30]Now, the argument from Ber is he didn't know about any of this.

[01:05:34]>> Can we see what she looks like? Can you go a little bit lower now? Do you think he knew about this? I >> what are the chances he knew?

[01:05:40]>> I can't believe that he didn't know. I mean, look, his argument is I'm not in the indictment. I'm not in the federal indictment. And the federal indictment says he didn't know.

[01:05:50]>> Katie Porter, who's been very aggressive on this, and some of the other Democrat candidates, is saying it's ridiculous.

[01:05:55]And just because you haven't been indicted yet, doesn't mean you won't be.

[01:05:59]And just on a human level, feels to me impossible to believe that he didn't know. The whole point of the scheme was to enable him to take his chief of staff with him to Washington. That's the whole reason for doing it.

[01:06:16]>> So he knew. So >> well that I'm I who knows. I mean he's saying he didn't.

[01:06:21]>> Is is that it rap? That clip right there between the two of them.

[01:06:24]>> Yes, that's the one.

[01:06:25]>> I wouldn't mind seeing it, but I'm sure there's going to be a bunch of ads that's going to come on first within three, two, one. There's an ad. Yeah.

[01:06:32]So, um, so I if something like this is tied to him, how big of a scandal would this be for him? Would >> Well, this is what a lot of the Democrat rivals have been saying. What you you're going to nominate this guy who then could be indicted in the middle of his campaign for governor.

[01:06:53]>> Can you go to the part where Katie Porter is calling him out?

[01:06:57]Fast forward a little bit to where Katy Porter >> So, my my line is more of a political. I said, "Look, you should you shouldn't be in this race. You should be preparing your criminal defense."

[01:07:06]>> Is this it? Go for it. Press play.

[01:07:07]>> Respectfully, Mr. Bisera, you your quote at the end drifted off a little bit from the words. What the quote was was that you had not been mentioned in the charging documents, that is in the indictment of Dana Williamson, your long-term chief of staff, Sean McCcluskey, or Greg Campbell. But as you know that does not preclude because you are also a trained attorney. You know that does not preclude an indictment from being issued against you. We do not know what Dana Williamson said about your involvement and the government will have the ability Mr. Mayhem Ryan the same way I did it when I was attorney general. We established a bureau that dealt with medical fraud working with the federal government.

[01:07:55]Unfortunately, Trump is a problem because Trump took a trillion dollars out of the health care system, out of the Medicare or the excuse me, the Medicaid and the medical system. Trump is now trying to deprive California of another billion dollars in healthcare for medical. He doesn't have the right to do that. Went to a different place.

[01:08:13]>> Yeah. Yeah. He's So that's their that's their argument. And it's not just Katie.

[01:08:17]It's also um Antonio Verosa, the former mayor of LA, making that argument very strongly like this guy could be indicted. It's a massive risk to have him as your candidate. That's their argument.

[01:08:28]>> Yeah. It was overnight when he all of a sudden spiked up. Yeah. When Swallwell dropped out when everyone was surprised.

[01:08:34]No, no one expected it.

[01:08:36]>> Yeah. So, the worry today Democrats have in California is holy [ __ ] >> Yes.

[01:08:40]>> If something happens here, is it Katie?

[01:08:42]Cuz they're worried about Katie. She's a wild card.

[01:08:44]>> Well, she seems to be Is it going to be Sty? Looks like Styer is the I mean look look at the data. I mean it's me and Bera on most of the polls. Me and Basera at the top then there's a gap then it's Tommy Styer. Then there's another gap's everyone else. Um there was one poll last week which I take very seriously.

[01:09:04]It's that one. There's the second one there Emerson College which had um basically a three-way tie at the top.

[01:09:12]myself, Pacera and Sty all roughly the same and so yeah you see it there 2019 18 so who know most of the polls are not that most of them show this gap between myself and Bera and Sty but Sty is definitely number two and and Katy Porter is well below so I don't know I mean look things have changed very quickly it feels like we're less than two weeks to the election voting's already started it feels very unlikely to me that Katie Porter is going pop back up.

[01:09:44]>> It would be catastrophic for Democrats if she does. It would be phenomenal for you if she pops up. You would love a Katie Porter opposition. It would be great for TV because to me, she's gifted. She's a natural villain to the core. She's so phenomenal. I mean, she she will get a job the day she doesn't make it to the view and she'll bring the type of views to the view they haven't seen for a long time. I think she is that talented. Natural. By the way, what do you say about Chad Biano? Because I have a lot of friends from Kern County.

[01:10:12]a guy named Ricky Aguular and who's spoken to Chad Biano and they've had different conversations and >> yeah, >> a lot of Californians love Chad Biano because he has got more he's an OG California. So people will say Steve's not in California. He >> he's not No, he's not an OG. He he he was he's an immigrant as well.

[01:10:29]>> Where did he come from?

[01:10:30]>> I think it's I think he's from Utah, is it?

[01:10:32]>> How long has he been in California?

[01:10:33]>> Oh, longer than me. A lot longer. No, no, it's fair enough.

[01:10:36]>> So So hey, you know, he he is in the system. He has done this. He has done that. But what you it's at a phase right now where he's kind of calling you out a little bit. You're not really saying much about him, but what do you say about Chad Biano? Because I think he's got a lot of uh respect for from a certain audience in California.

[01:10:51]>> Yeah. I mean, it's an election we're winning. Um at this point, it's not about I have nothing against Chad personally. We have perfectly good um personal relationship and it's just a simple point now. We we're less than two weeks to the election.

[01:11:09]the time for a kind of debate over who'd be better and who's got on most policies we completely agree to be honest and you see that in the debates and you'd expect that in a way but it's beyond that now it's like we've got to be real about this situation if that other poll is correct the Emerson poll or or let's say it's closer to that reality >> which is a three-way tie then there is a very real possibility >> of the outcome come of this primary being two Democrats, Basera and Sty.

[01:11:42]That is not that is not an impossibility.

[01:11:46]I don't think it's likely. It's not the most likely outcome, but it's certainly not impossible. And so that's why I'm going all out. You know, we've got to get a rep. If you have two Democrats in the top two, imagine that in California, no chance for change. They'll be out bidding each other on the left to pander to the unions and the activists, right?

[01:12:04]Be going further and further left.

[01:12:06]>> Are you suggesting Bianca drop out? I've very much so.

[01:12:09]>> Have you spoken to him? Have >> you tried? Yeah. No, I've I've reached out to him and and um we were going to meet and then it didn't come together. I look I' I wrote a piece for the California Post about this just two days ago. It seems to me he's not in that place. That's of course his right, but we just got to be real here. There isn't just like we said, it doesn't look as if Katie Porter is going to get there um up up into the top two. Same with Chad. So and whatever what reason for that and doesn't matter we are where we are >> couldwa drop out at the end Rob or no in New York >> do you remember when uh it was him Cuomo and Mannani did SWA ever drop out do you remember that >> I don't think so >> I don't think he dropped out I think he went to the very end >> he didn't >> he didn't he was offered 10 million to withdraw that's the story that he told I remember that yeah so he didn't drop out and obviously we know who ended up winning which is Mandani yes so in this case it'll be interesting Because the president has already endorsed you, right? He has. How recent was the endorsement?

[01:13:12]>> Easter Monday. I remember it very Monday.

[01:13:14]>> A very memorable day for me. Yeah.

[01:13:16]>> And I'm sure in the next, you know, two weeks, he's probably going to make some more noise and put you out there as well because we saw the president's endorsement two nights ago was 37 and0.

[01:13:25]So he's got a pretty good track record still today. And no matter how much people say about him, when he endorses somebody, carries a lot of weight.

[01:13:33]>> So that'll be interesting to see. So he said two weeks. Today's what? Today's May 22nd or 23rd. What is today's date, Rob?

[01:13:40]>> Today is May 21st.

[01:13:42]>> 21st.

[01:13:42]>> So if it's the 21st today, the day is what? June.

[01:13:46]>> June 2nd that you guys are voting. Yeah.

[01:13:47]And then you're going >> Well, voting is now, >> right? It is. And then you got 166 days to the whole shebank if you're in it.

[01:13:55]>> Yeah. Well, look, I'm feeling confident.

[01:13:56]I and it's, you know, it's a weird thing for me to I hate talking like this because um I just feel I've never run for office before. I have this this I don't quite understand how and it's funny people coming up to you and say I voted for you. It's an amazing >> it's a real it's very humbling truly. I know it's a cliche little bit of a pompous thing to say but that's truly how I feel about it and a strong sense of responsibility. people put a lot of faith in you. But that question of okay, yeah, these are polls are coming out and I'm leading in the polls. Great. How that turns into actual votes is something that um you know I I just don't take for granted at all. So we're going to be fighting very hard. Keep raising money, keep getting our message out right until the end. But it's it's close. Now >> here's a question for you. Here's a question for you. So 441 businesses have left, relocated since 2018.

[01:14:49]>> There's got to be many more than that.

[01:14:50]Well, that's the number big business 2026 reported on this net >> uh domestic loss three million people net since 2010 to 24 and then we know they lost another trillion dollars that left with the new wealth tax that they have in place. Here's an idea for you.

[01:15:05]Sergey Brin endorsed you, right? He's a he's a guy that came out and he's worth a couple hundred billion dollars. I think he moved in Miami, bought a $200 million property. He's building something for himself. Ken Griffin left Illinois. He came down here. M Donnie tried to dox him with his property that he lives in. There's a lot of weird things that's going on.

[01:15:22]>> We saw now mom Donnie is trying to beg people to come back. We're seeing the may the mayor of Seattle, Rob, if I'm not mistaken, >> correct?

[01:15:28]>> She is now worried about Seattle leaving Starbucks leaving. Hey, can you please come back?

[01:15:32]>> Right.

[01:15:33]>> What do you think about hosting an event in the state of California? And here's the event.

[01:15:37]>> Yeah.

[01:15:38]>> The event is calling some of these businesses that have left.

[01:15:42]>> Yes. and bringing them back for an event in California because mo I lived in California 24 years, five years down, five years here.

[01:15:50]>> I lived in Glendel, California. I went to Glendel High School, class of 96. So I lived there since 1990.

[01:15:55]>> I'm an OGA guy.

[01:15:58]But imagine if you run an event and you say Sergey Brin all these business they're in Texas they're in Florida they're in Tennessee they're in Nevada all of the Mark Wahlberg who's down here right now who is an LA guy he moved to Vegas and you ask these guys and these are conversations you have before and say what can we do to bring you back so if if a if an event like that took place >> where you are now bringing customers back >> all the people in California that are worried about the big business owners leaving now they're going to say maybe this is the guy that can do something with that.

[01:16:35]>> I love that. And that's how I feel like I when you when I think about the campaign and the story of of of what we need to do to to bring California back.

[01:16:48]There's different levels of it, different ways you look at it. For example, there's the campaign. There's the simple promises and and commitments you make that are going to help people in a practical way their daily life.

[01:16:58]That's the campaign. I call it cal affordable $3 gas cut your electric bill in half etc. Right?

[01:17:05]>> Then you look at as we talked about earlier what are the underlying policy drivers that you got to deal with in terms of the the chaos and cost climate extremism litigation unions. We talked about that. But actually when you think, well, what am I what's the mission?

[01:17:24]What's the what's the really what's the central mission that that's got to happen that's got to be achieved if we're going to turn things around? It actually is this point about the business climate because without that we don't have anything.

[01:17:39]>> That's the underlying customers back.

[01:17:42]>> Exactly. And if we if we if we if we make it really clear that we are now not we are we are not just not hostile to business as we are now but we are positively going to roll out the red carpet. We want you back. We want to make your life easier. What can I do to help? That's how I see my role as governor is being there to help business create jobs and wealth and opportunity in California. That is the that that's actually the central mission. everything else will flow from that because if you do the things that will make California once again the best place to start and grow a business then all those other things will happen. So I love that.

[01:18:24]>> Yeah.

[01:18:24]>> I I hadn't actually and and I've got some very serious conversations going on.

[01:18:28]>> Just think about that event visually.

[01:18:29]>> No, that's beautiful. I love >> Pick a great location. Pick a great spot. They're all sitting there and they're talk these are all you put them expats. I don't know where you want to.

[01:18:37]You got to find a unique thing to put like ex uh uh Californians who left and they're in different spaces >> uh uh that who love Rogan, Musk, you know, you got Sergey, you got all these guys.

[01:18:49]>> Yeah.

[01:18:50]>> If it gets to that point, because if you can >> if you can convince >> people who left, those are the biggest stories because let's talk about the wealth tax, right? Hey, let's tax these billionaires. We're in Aspen and all of a sudden I get a story comes out saying they need this 882,000 signatures to be able to pass on a 5% wealth tax. I'm like, of course they're going to get the signatures. What do you mean? Because it's only 200 billionaires. Of course they're going to come up with this. So guess what ends up happening? They get one one and a half million plus signatures on a 5% tax.

[01:19:22]>> So that's going to be on it for people to vote. And then one by one by one, people like Brin and others are leaving saying, "You're not going to tax me on this. I'm out of here." Right.

[01:19:29]>> Yeah. And then yesterday, Jeff Bezos uh is doing an interview with Sorcin, which by the way, I thought this was a phenomenal phenomenal interview. If you haven't watched his whole thing, you ought to put it on the list of things to watch the next couple days. Here's what he had to say about taxes. Go ahead, Rob.

[01:19:45]>> And Elizabeth Warren has made this point repeatedly. I think she's made in reference to you and others um are able to pay a lower tax rate, even though you're paying an enormous sum in taxes, a lower tax rate than maybe I am.

[01:19:59]Because people uh sometimes say that uh that you know uh I don't pay taxes. So true. I pay billions of dollars in taxes and it's a per again if people want me to pay more billions, right?

[01:20:11]>> Then let's have that debate. But don't pretend you know that this that that's going to solve the problem. You could you could double the taxes I pay and it's not going to help that teacher in Queens. I promise you this is so you can't connect those two things. Not logically. uh you know there there there there are more examples. Why is rent expensive? Why is rent so expensive? I recently saw somebody blamed it on Airbnb. Okay, Airbnb is not the cause of expensive rent. In fact, it's been almost No, let me finish here one sec.

[01:20:43]It's already been outlawed right >> in uh New York City and rents are still very high. So, we know Airbnb isn't causing high rents. What's really causing high rent is government intervention.

[01:20:55]>> Yeah, exactly. thoughts on what he had to say?

[01:20:58]>> Well, 100% correct. Um, and we are the proof of that in California because we have taxed the rich in California. Um that's one of the reasons that our fiscal situation is such a mess in California with massive volatility in in state revenue and yeartoyear because so much of it is dependent on the stock market because so much of it is dependent on the wealthy. I mean the number is something like the top 1% of California earners pay about 50% of the of the income of the income tax. And so that's already happening in California.

[01:21:39]And as we said earlier, they've doubled the budget. Look what happened to school result. I mean, he's bragging Newsome about $28,000 per student per year for the for the public schools. And the results are terrible. Um, so that's exactly right. It's not and and we've been through all the reasons. And Bezos is right that the drivers of these costs in California, certainly on housing, is all these endless regulations and concessions to the groups that control the Democrat politicians, the unions, the climate activists. That's the lawyers. That's how we've got to this point.

[01:22:15]>> Yeah. I mean, look, when you're seeing he continues to say the top 1% pays 40% of taxes, the bottom uh 50% pays 3% and he should I I think that should be even zero. Rob, if you go to that one uh uh on uh percent taxes, yeah, there there's another clip. It's not going to be a quarrel.

[01:22:38]There's one that you have to find, Rob, where he says the go to the one with Mandani. See if it's that one. go back and see if it's the Mandani one.

[01:22:48]>> Billions of dollars in taxes and it's a per again if people want me to pay more billions.

[01:22:53]>> There's a part that he specifically says go to his account. Go to Bezos X account. Just type in Jeff Bezos. Go to his account because I think this is becoming more and more logical. Second one. There you go.

[01:23:08]Go a little bit lower. Go lower. Lower.

[01:23:11]Lower. He writes it in the account in the video.

[01:23:16]That's it. So, he puts yes to United.

[01:23:17]Okay. Press this one. See if it's the same one or if it's a different one.

[01:23:20]>> Start by having the nurse in Queens not pay taxes.

[01:23:25]>> Why is somebody at all Why is some Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?

[01:23:35]>> That's $1,000 a month that could help with rent or groceries or anything.

[01:23:39]>> Exactly. And so, and and by the way, do you know what that all adds up to? The the the bottom half of income earners in this country pay only 3% of the taxes.

[01:23:51]>> It's only 3%. We can find 3%. So, we don't have it's it's it's a small amount of money for the government, you know, that >> and really it's and the more I thought about it, to me, it's kind of absurd that we're doing this. You know, we shouldn't be asking this nurse in Queens to send money to Washington. They should be sending her in a public talk about >> this. This aligns with what you're saying, no taxes under 100,000, >> right? Right. Because look at California's tax schedule, right? When you look at the rates, it's insane.

[01:24:23]>> You start paying I think that these numbers are right. You start at at 72 grand >> of income. Y >> you're starting to pay in California 9.3% state income tax. That is higher than the top rate in most states of America >> at 72 grand. I think it kicks in.

[01:24:42]>> It's just Yeah, you're right. Insane.

[01:24:45]>> Like 93 on 7. So I'm paying $7,000 on 72K. I could have kept that money.

[01:24:52]>> Car payment, food, gas, whatever it is that stays with me.

[01:24:55]>> It's really bad.

[01:24:56]>> It's a common sense idea that you have.

[01:24:57]So, but by the way, where do you stand with the, you know, the the the the rail, the high-speed rail that he was supposed to build?

[01:25:04]>> I was just there. Um, I lost lost track of the days two days ago. We just stood in front of literally a bridge to nowhere. Like they bu if you I drive up and down the central valley all the time. It's the 99 highway or the five freeway. It's mo mostly in the middle, the 99. Um, and we haven't put it out yet, so you won't find this, but um, the um, the infrastructure they've built is just all you can see up and down.

[01:25:35]>> It's here are the numbers. So, they said that it would be open by 2020, >> 2 and a half hours, San Francisco to LA >> and total cost of 30 billion.

[01:25:44]>> Here's the latest BIS, they laughably call it a business plan. This was just published like two weeks ago by the highspeed rail authority budget from 30 billion to 231 billion. the budget the plan is now from San Francisco to Merced which is at the top of the C you go inland top of the central valley that's on the existing trains not highspeed then you get on the highspeed train at Merced and you go down to Bakersfield highspeed train then Bakersfield to LA bus stop >> bus who who that's the that's >> Can you verify this there's no way.

[01:26:26]That's what they're saying.

[01:26:26]>> That's the plan >> for the 231 billion.

[01:26:28]>> Yes.

[01:26:29]>> So, they go from the 2 and 1/2 hours to me having to have multiple stops before I go to San Francisco.

[01:26:33]>> And like I I point out the 2 and 1/2 hours sometimes you you'll do that just from Baker if you're driving Bakersfield to LA can take that long.

[01:26:42]>> There's no way that's what they're saying.

[01:26:43]>> That is Rob. Zoom in. Let me see. The revised draft plan outlines a commitment of full non-stop high-speed connection between LA and Bay Area by 2039.

[01:26:53]Construction span 119 mi. No, go a little bit lower because I'm trying to see is there a stop future long-term extensions connect North Sacramento East Sacramento >> there is no way they're telling you to go come back with a bus and then go to >> that's the thing if you look up bus there's a >> Calr consider 140 mph bus that that's a different story Rob >> that's a different story >> if that is true that is pathetic >> that is true >> that is absolutely pathetic if that's what they're saying >> it was told her. This is the business plan. This is a couple of years, a couple of weeks ago.

[01:27:30]Wow.

[01:27:32]So, it's insane. And also another thing, the bullsh Sorry. I mean, the things he says. So, he did a press conference >> um I don't know when it was um a couple of months ago to he's trying to sort of because obviously the only thing he cares about Newsome is running for president. That's very obvious. And so, he's trying to clean it all up. So they did a um event there where he stood in front of trains, just some engines to make it look as if he was doing something with actual trains. And he was trying to announce that they were doing laying of tracks because one of the points that we make is that this is you know like more than a decade into it, two decades nearly.

[01:28:22]Um, and there's no track been laid.

[01:28:27]They've built a bunch of stuff, but no tracks. And he was trying to announce that he was doing tracks, but even then he actually, if you look at his words, he didn't say we're laying track. So, we are entering the track laying phase.

[01:28:41]This gaslighting over this is just there. We are look a critical step in the track laying stage. They're not actually laying any track. This is how they do. And it's just ins and by the way they're still pretending this is realistic and going to happen and we are still paying for it. So earlier I mentioned the cap and trade thing cap and trade scheme which is one big component of the uh ga the high gas prices on top of the gas tax. There's this thing called cap and invest which is the carbon trading ridiculous bureaucratic scheme. It's basically a tax on energy production and use.

[01:29:19]One quarter of that goes to highspeed rail.

[01:29:24]So, we're still paying for it. I mean, the federal bid has been ended.

[01:29:27]>> Good idea or bad idea?

[01:29:28]>> The highspeed rail.

[01:29:29]>> Yeah.

[01:29:30]>> Highspeed rail is in other places works well. In Europe, it works really well.

[01:29:35]I've used it a lot. It doesn't work. It doesn't make sense in California because of the way that we've developed in California. Because you could take a train from let's say let's say all worked fine. You're San Francisco to LA.

[01:29:50]Well, where when you get to LA, what do you do? You let's say it's Union Station, which is, you know, over downtown LA.

[01:29:59]It's like another 45 minutes to get to >> anywhere, >> the west side or whatever. So, what what do you do then? We're just not that's not not how California this is what I really it's a really good example of what's gone wrong in California which is they've been trying to impose ideological blueprints on practical life as it's lived. They they have this ideology which is they want everyone in trains, public transportation, cycling, walking. Let's be more like Europe. That's what because of climate is that's why I say the climate stuff is a real driver. Let's be more like Europe. Let's have density.

[01:30:38]That's not how California was built. And whether you like it or not, the way that California was developed was outwards.

[01:30:45]And that's a part of the beauty of California life. A single family home, you have a yard, the kids can play outside, enjoy the weather. That's just how we grew. And so this doesn't work.

[01:30:57]This model of public transit doesn't work in California. You just have to you'd have to sort of completely re redo certain cities. San Francisco very dense you get it works there but even then how do people get around in San Francisco? I mean yeah there's the Mooney and the B whatever but people now you got Whimo and you've got so many you know I it just doesn't make sense in terms of of how people are going to even on their original estimate. I I looked into it for my book when they actually sold highspeed rail. They did sell it as a getting cars off the road idea.

[01:31:32]But who's doing this drive? I mean, you people fly.

[01:31:37]>> It's crazy to even think about. I mean, I know Palmdale. I know Bakersville. I know Fresno. I know all these streets, all these cities. Stock. I've driven all over these place cuz I was selling insurance for 20 years, >> right?

[01:31:47]>> And uh uh you know, so >> also here's another thing just really annoying. So you look at that map there, the bit that goes down to Anaheim, which is a fantasy. This is just insane. They can't even build the Okay, if you look at that map, the easiest bit from from me to Bakersfield through the central totally flat. Nothing, you know, that's taken forever and nothing's happened, >> let alone in the city, >> right? Or or through. That's why they're doing the the bus because from Bakersfield to to to um you know the other side you got big mountains there.

[01:32:20]>> That's hard engineering wise which they haven't figured out. So and then the Anaheim bit which is just a fantasy. Uh the other week they published an environmental impact report. Here's a really good example of the bloat and nonsense in California. They publish an environmental impact report for this leg of the thing from LA to Anaheim that that no one thinks is going to happen.

[01:32:45]The summary of the environmental impact report just for that was 100 pages.

[01:32:51]>> Someone's paying for that like some consultant. We well we're paying for it.

[01:32:55]That's what I mean. This there's no check or control on this bloat in the government. They keep because they don't have people who think like that. They don't have business-minded people who look at all this and say, "What are you doing? Why are we commissioning an environmental impact report for something that everyone knows is never going to happen?"

[01:33:14]>> I want to show you something and I want to wrap up on this. Here's a clip from Newsome. Okay. And he says some things that a lot of people have been taking in a weird way. I want to see how you interpret this.

[01:33:24]>> He says he has a secret plan to break the glass. Rob, if you want to play this clip for the audience to see. And uh I don't know if he's talking about you. I don't know if he's talking about, you know, whatever. Because look, a candidate running Republican. That smile that he has, he he looks like he's up to something. Go ahead, Rob.

[01:33:42]>> But you spoken about accountability. Do you think Democrats will hold you accountable for standing by this principled neutrality by withholding your endorsement in this non-possible scenario where two Republicans take the ticket?

[01:33:53]>> Yeah, look, I my my focus has been making sure that doesn't happen. And I've exercised not just a focus, but I've exercised through some action efforts to uh uh to encourage that that doesn't happen by making my case. And um and will continue to make my case. I I do not see that scenario taking place.

[01:34:14]I've said this before, so I'll repeat it. I don't anticipate this need to be the case, but there is a break break the glass scenario and I there's many people that have a deep understanding of what it would look like if Democrats were locked out and we're going to do everything to make sure that doesn't happen.

[01:34:29]>> What do you think he means by that? What do you think he means by that?

[01:34:31]>> I think what he means is that um because remember it's all about him.

[01:34:38]It's only about him.

[01:34:40]>> It's only about his presidential ambitions. It's the only thing he cares about. I think what he wants is two Democrats in the top two because if there's if I'm in the top two, he knows that the rest of this campaign a big part of it will be a prosecution of his record because that's the whole argument >> going into election.

[01:35:02]>> Yeah. So that all this stuff that we're talking about will be even louder volume because I will be there saying we can't go on like this. This is insane. We are done with this. we cannot have another four years of this. Um whereas if it's two Democrats, none of that. His record won't be an issue. It'll be left, you know, are we going to have singlepayer healthcare? Are we going to tax how much are we going to tax the rich, etc. The other point is this. If I'm in the top two, if there's a Republican in the top two, then there's a chance, of course, that I'll win. I believe I can when we haven't really talked about my path to victory, but I I can see it because and it starts with the fact that you've now got a majority, a clear majority of Californians who think it's time for change who who think the state's on the wrong track. That's the starting point.

[01:35:48]And then if you look at the numbers of votes that you need, even President Trump in California without campaigning there in 2024 got more votes in California than I would need to win in a midterm year. And there's there's other things. the fact that we've got voter ID on the ballot in November in California, that's going to bring out a lot of Republican voters and so on. So, I can see a path to victory and that's Nuome's worst nightmare. Imagine he if if this is the scenario in early 2027, just as he's launching his presidential campaign, you've got a Republican taking over as governor. He's just lost California to Republicans. That is it.

[01:36:28]and and as I'm cleaning up the mess that he's left behind, I will be exposing what he's done um as in the process of cleaning it up, which will be a disaster for his presidential campaign. So, he wants to avoid that at all costs. What he wants is Sty Bera. So, I think what's going on here is that he is raising the spectre of two Republicans in order to continue to give Republicans hope that that can happen. In other words, encouraging Republicans to try and get to Republican voters to try and get two Republicans in the top two by voting by continuing to vote for Chad Biano. I think that's what's going on here.

[01:37:09]>> So you Okay, got it. So the more Biano goes up, you go down, then the top two will become Democrats. That's their strategy.

[01:37:18]>> Yes.

[01:37:20]Because he's desperate to see two Democrats.

[01:37:23]>> What do you know about Styer? because he also came out of nowhere.

[01:37:26]>> What I know >> billionaire sty, you know, >> the billionaire climate for here's a couple of things.

[01:37:31]>> First of all, we talk about costs and he keeps going on about affordability.

[01:37:35]>> Yeah.

[01:37:37]>> Most of the climate stuff that I'm talking about that's given us this insane gas prices, electric bills, and so on, housing costs, it goes back to a piece of legislation passed in 2006, AB32, the Global Warming Solutions Act.

[01:37:52]A lot of this framework was set up then.

[01:37:54]the cap and trade system, all of this.

[01:37:56]In 2010, four years after it was passed, there was a ballot initiative to overturn it.

[01:38:03]And the main funer of that ballot initiative, the opposition to it was Tom Styer.

[01:38:11]So, we could have avoided all this pain and cost, but it was Tom Styer who defeated that initiative. So he's honestly you could there's a way you could put it which is he is personally responsible for this insane level of cost of everything in California. The other thing we know about him is how obsessed he is with trying to get elected to something. In this campaign for governor, the numbers are published all the time. Here's the latest. Here's how much he spent.

[01:38:43]$193 million >> in this.

[01:38:45]>> Yes. since like when he entered the race. I don't know. November >> in this.

[01:38:49]>> Yes. 193 million. That's his latest filing.

[01:38:55]>> Okay. 192.4.

[01:38:58]>> Oh my god.

[01:39:01]>> Wow.

[01:39:01]>> So far, you haven't even got to the primary.

[01:39:04]>> And I mean, listen, fire your marketing team. $192 million. Spencer Pratt could have done it for you for $300,000.

[01:39:12]>> Incredible.

[01:39:14]>> Oh my god.

[01:39:15]$192 million.

[01:39:18]And where is he at on the polls?

[01:39:20]>> He's He's third.

[01:39:21]>> He's two.

[01:39:22]>> You're two. He's three.

[01:39:23]>> That's Look at the Look at that one.

[01:39:25]This is They're mostly like this one that you've just seen them.

[01:39:28]>> Got it. Got it.

[01:39:29]>> So, >> so he's three. And Bianca's at 10 for this one.

[01:39:32]>> Yeah, >> man. Vosa, what a disappointment. 1%.

[01:39:36]Like literally nobody wants him. Nobody.

[01:39:40]At one point he was so famous, popular, you know, walk around.

[01:39:43]>> I like him.

[01:39:43]>> What do you like about him? I just like it. I look, I get on with most people, but there's something I I like Antonia.

[01:39:50]He's um I think his heart's in the right place. He's definitely challenged the Democrat orthodoxy on a lot of issues.

[01:39:57]He challenged the teacher unions on education. He's actually the only one who's really called out the climate stuff. He's talked about opening up oil production.

[01:40:05]>> Why is he doing so bad?

[01:40:07]>> I don't know. It's interesting cuz, you know, you'd think he's run, you know, he's twot heavyweight.

[01:40:13]>> I don't know. I I truly don't know.

[01:40:17]I like him.

[01:40:18]>> All right. Sounds good. I think there was some strategy endorsement there for Varosa. You liking and we'll see what happened there. But, uh, final thoughts here for Californians. What if if they want to support, what can they do? How can they support you if they want to help?

[01:40:32]>> So, first, vote. You got to vote. I mean, none of this stuff will happen unless we vote for it. And I think one of the big things that we have to have to make this change in California is belief that it's possible. Because I think people have got conditioned to this idea that well a Republican can't win. And so you're stuck with this choice of putting up with the insanity or leaving the state. And that's a terrible choice. It's a ridiculous choice. And that idea that things can't change. I mean, I say I say this sometimes as a as a new American citizen. It's a very unAmerican attitude that you just can't it can't be done. Of course, it can be done. It's obvious that it needs to be done. It's obvious that we need change, that we need balance, but you got to vote for it. And one of the reasons I've been so I've been campaigning so hard and up and down the state for a year now, working really hard, is just to give that sense of energy and belief. And so so number one is vote vote vote and tell all your friends uh we got to we got to do this and come out of this primary with energy and we always need money. Look we don't have sty money. We don't have any of that. We we we're very frugal. It's a lean startup kind of deal, but we're spending a little bit on advertising and we got to get that message out because, you know, if if if the truth is somewhere between those polls that it's it's a it's still too close for comfort and you could end up with this two Democrat scenario, which is a disaster for California and for the country because we can't have our biggest state, our most beautiful, amazing state that's generated so much incredible um innovation and leadership for America from Hollywood to tech to our great farming industry, life sciences, biotech, you know, just so much that comes out of California. And imagine how great it would be for our country if we have a California that is firing on all cylinders again.

[01:42:27]>> Yeah. You know, it's interesting. What most people don't know since uh the last hundred years, I just pulled it up with the team. What percentage of the last hundred years in the state of California, the governor was a Republican versus a Democrat? You know, 51% interesting >> Republican >> only 39% Democrat.

[01:42:44]>> That's amazing.

[01:42:44]>> And if you look at all time >> Republican 20-7, I think it's time for California to go back to what it is to your original Republican governor days. We had an Armenian governor, Dian. I don't know if you knew that or not.

[01:43:00]>> Yeah. Yeah. Diane. Yeah. He was a he was a governor.

[01:43:03]>> Glendale. Very big, >> mass massive Armenian. And by the way, there's some crazy Armenians that are leftist joined the trans LGBTQ camp, but there's a lot of Armenians to the core that raise their kids in a conservative way. And I hope they get behind you.

[01:43:16]>> Exactly.

[01:43:16]>> And uh folks, if you want to support I saw the number 30,000 plus donors already, right? Is 30.

[01:43:21]>> Oh, no. 65,000.

[01:43:23]>> 65,000. Okay. The report here says 30 65,000 plus donors >> and probably more. I mean, it's that's one of the most beautiful things. I've never run for anything before and we gone from nothing to >> 65,000 from nothing to it. That was the last number that we put out.

[01:43:38]>> Great.

[01:43:38]>> Yeah.

[01:43:39]>> Go visit the site stevehilton forgovernor.com.

[01:43:43]And uh if you enjoyed what was talked about today and you want to see more support, share this message with others.

[01:43:49]Share the link with others. Give financially. Knock on doors. Talk about it at dinners. Talk to your friends.

[01:43:55]Talk to your peers. Get the message out there. Steve, uh, excited to see what happens with you the next two weeks.

[01:44:01]You're obviously doing the work and I wish you nothing but the best.

[01:44:04]>> Really wonderful to be with you. Thank you.

[01:44:06]>> And I look forward to that event you do.

[01:44:08]People from California, right?

[01:44:10]>> I look forward to you doing that event.

[01:44:11]I think it's a massive publicity stunt for everybody to say, are these people really talking about bringing their money back? I think that would be massive and a lot of Californians would support it. Great having you on, sir.

[01:44:22]Take care, everybody. Bye-bye. Bye-bye.