The MeidasTouch Podcast: California Governor Gavin Newsom on Trump Crashing the Economy

Release Date: April 3, 2025

In this compelling episode of The MeidasTouch Podcast, hosts Ben, Brett, and Jordy Meiselas engage in a deep and insightful conversation with California Governor Gavin Newsom. The discussion primarily revolves around the economic turmoil caused by former President Donald Trump's policies, the impact on California's economy, and the broader implications for American democracy.

Economic Downturn and Tariff Impacts

Host Introduction (00:30): The episode begins with the hosts highlighting the alarming state of the U.S. economy, citing significant declines in major stock indices:

• S&P 500 down 4.4%
• Nasdaq down 5.6%
• Dow down 3.6%
• U.S. job cuts totaling 275,000 in March, marking a record.

Governor Newsom’s Response (01:10): Governor Newsom emphasizes the severity of the situation, stating:

"I represent a state the size of 21 state populations combined, the fifth largest economy in the world... the impacts are extraordinary." (01:10)

He underscores California's pivotal role in the national economy, being the largest manufacturing state with direct trade ties to China, Mexico, and Canada. Newsom attributes the economic instability to the "recklessness" of the current administration, highlighting the global ramifications beyond California.

Self-Inflicted Recession and Historical Parallels

Host’s Analysis (02:08): The host draws parallels to the Smoot-Hawley Act of the 1930s, suggesting that Trump's imposition of tariffs has led to a self-inflicted recession:

"We know that if you impose these types of tariffs, it's going to have the consequences that we are seeing now." (02:08)

Governor Newsom’s Insights (02:37): Newsom delves into the ideological motivations behind Trump's policies:

"Donald Trump... has been consistent for decades and decades on the issue of tariffs and the fact that he believes that other countries have ripped us off." (02:37)

He expresses concern over the long-term effects on democracy and the necessity for the Democratic Party to unify and counteract these policies to protect future generations.

Strategic Responses and Moral Authority

Host's Inquiry (03:56): The conversation shifts to strategies the Democratic Party should adopt in response to economic chaos:

"What's your message right now about what the Democrats should be doing in messaging, what's happening with the economy and just generally in this moment, right now of chaos?" (03:56)

Governor Newsom’s Strategy (04:21): Newsom outlines a two-pronged approach:

1. Formal Authority: Utilizing governmental power to challenge Trump's administration through lawsuits and legislative actions.

   "We've already advanced nine formal lawsuits in just a little over nine and a half, ten weeks." (04:21)

2. Moral Authority: Encouraging all Democrats to assert themselves and unify around democratic values.

   "All of us now need to be unified across our differences... to share a voice and to unify around the foundation of our democracy." (04:21)

He stresses the importance of rebuilding the narrative through collective effort and moral leadership.

Tariffs and Their Real-World Consequences

Host’s Commentary (06:49 – 07:11): The host criticizes the arbitrariness of Trump's tariff decisions, citing examples of tariffs imposed on uninhabited Antarctic islands and a U.S. military base:

"We're tariffing our own military base. No offense to clowns. This is clownish stuff." (06:49)

Governor Newsom’s Analysis (07:37 – 13:33): Newsom responds by elaborating on the illogical and detrimental nature of these tariffs:

"Trump just did 22.7%, 23%. And it was done on the basis of some cockamamie formula that literally no one understands." (04:21)

He explains the severe impact on California’s economy, highlighting:

• California accounts for 14% of U.S. GDP.
• The state's manufacturing sector contributes $421 billion.
• Loss of jobs affects various industries including forestry, agriculture, and fishing.

Newsom emphasizes the need to shape the narrative to counteract misinformation and rally support for democratic principles:

"Democrats need to own that space again, and we need to be a big tent party again..." (07:37)

Engagement and Media Strategy

Host’s Challenge (13:33 – 15:06): The host questions Newsom on his approach to engaging with controversial figures and whether it normalizes extremist views.

Governor Newsom’s Response (15:06 – 18:21): Newsom clarifies the intent behind his podcast:

"I wanted to create a platform for a different kind of engagement, a two-way conversation." *(15:06)

He emphasizes the importance of understanding and engaging with differing viewpoints without resorting to demeaning tactics:

"I really long for a world where we can live together across our differences." (15:06)

Newsom addresses the imbalance in platform power, noting the challenge Democrats face in competing with figures like Charlie Kirk and Steve Bannon who have substantial followings:

"They have millions and millions and millions of followers... Who's platforming whom?" (15:06)

Closing Remarks and Call to Action

Governor Newsom’s Final Message (18:21 – 20:28): In his closing statements, Newsom delivers an uplifting message to listeners facing uncertainty:

"You are the antidote to your own fear and anxiety... You are winning because you're showing up." (18:31)

He urges Americans to maintain their confidence and unity, highlighting resilience through past challenges like COVID-19 and economic shocks:

"We have to step up and we're on our feet and... making our voices heard." (18:31)

Newsom concludes by reinforcing the collective strength and moral compass of the American people:

"We're all better off. That everybody has the capacity to flow with the forces of life, to be fully expressive." (18:31)

Key Takeaways

• Economic Impact: Governor Newsom provides a detailed analysis of how Trump's tariff policies are adversely affecting California's robust economy and, by extension, the national economy.
• Democratic Strategy: Emphasis on leveraging both formal and moral authority to challenge current economic policies and unify the Democratic Party.
• Narrative Control: Highlighting the necessity for Democrats to shape and control the national narrative to counteract misinformation and promote democratic values.
• Engagement Approach: Newsom advocates for understanding and engaging with opposing viewpoints through dialogue rather than confrontational debates.
• Resilience and Unity: A call to action for Americans to remain resilient, maintain confidence, and work together to overcome economic and societal challenges.

This episode offers a profound exploration of the intersection between politics, economics, and democratic values, highlighting Governor Newsom’s strategic approach to navigating and mitigating the adverse effects of divisive policies.