Gov. Gavin Newsom is angry.
“I’m done being taken for granted,” California’s governor said in a recent interview. “It’s time to go on the offensive.”
Newsom had sat down with me in March as part of a 45-minute interview to discuss the “California Effect” for my article in the upcoming California issue of The New York Times Magazine. It’s a phrase academics use to describe the state’s long-standing ability to direct national policy through the strength of what is now the world’s fifth-largest economy.
Now Newsom, a Democrat, is trying to create a whole new kind of California effect, one that goes far beyond environmental and consumer protection measures. He wants to use the state’s market power to discourage companies from joining policies in Republican states that he disagrees with.
He makes samples when it’s convenient — as Walgreens learned when California said it would cancel a contract with the pharmacy chain in response to the company’s decision not to sell the abortion pill mifepristone in several states.
In our last interview, Newsom said that a tweet he posted on March 6 where he said the state “finishedwith Walgreens was actually prompted by an unrelated issue. But he made no apologies for using California’s market power as a weapon in the country’s culture wars.
“I hope they realize that the decisions they make in these other states are going to directly affect them in states like California in ways they haven’t in the past,” he said in a warning to business leaders. “I want them to know that. I want each of them to know that.”
The interview has been shortened and edited for clarity.
Conor Dougherty: I want to talk about the unique strength that California has, which is that its economy is so large that it can effectively regulate the nation, at least in certain areas, based on its market size. Automobiles are the classic example, where California’s tailpipe emission laws have made it a de facto regulator of the auto industry. I’m curious what you think about this lever, where it comes from, how you use it?
Gavin Newsom: I think it’s essentially moral authority.
CD: Sure, but Wyoming might believe they have moral authority. The problem is that 600,000 inhabitants is not big enough.
GN: It’s the combination of both. We have no direct legal rights that we can enforce in other states. But it’s the nature and size of the state, larger than 21 states combined, along with a unique ability to lead, especially in the ecological space, and the power of emulation.
CD: How much do you think to yourself, “How can I influence the entire nation?”
GN: Now more than I ever have. I am very concerned about the moment we live in. To see the attacks on the LGBTQ community, to see success with the “Don’t Say Gay” laws; to see [Republicans] turning business leaders over and over again; to see how they ban books, ban speech, intimidate not only teachers but also librarians; to see what happens with gun safety – you have each governor tripping over each other to outdo each other, with this playbook. That’s why I’m thinking about it.
CD: The now infamous Walgreens tweet, in which you threatened to revoke state contracts from the company after it said it would not sell abortion drugs in certain states, felt like a new direction, saying you want to use California’s market power to wade you in the culture wars.
GN: I think you’re right to point that out. But don’t forget what we did with the right of private action, the quotes “bounties” with guns. That was the first foray, in terms of shifting our approach to how we engage. Then I thought, “Okay, am I going to put out tweets and press releases? Should I just express my outrage by watching Rachel Maddow every night with a glass of wine? Or are we going to use the power of the fifth or fourth largest economy to train our muscles?”
I thought Walgreens should be called out. These guys are appeasing justice in this whole country.
CD: When you say “these guys,” do you mean the companies?
GN: All these companies are silent. They are complicit in all of this. A few years ago they all preached something completely different. And they are completely silent now.
CD: Do you see the California economy and its enormous market power as a weapon?
GN: I think it’s an antidote. In Reagan’s mind, it’s a time to choose. I mean that seriously. Which side are you on? You can’t have it both ways. And you know what, it’s a pretty challenging dynamic. I’m very empathetic to corporate America at this point. This is hard stuff. But then just stop saying you care about your staff. Stop lying to people.
Did you see what the College Board did with black studies? They rolled over. You want to know why I did that to Walgreens? That was my blood boiling after the AP on Black studies, where the Executive Board completely capitulated.
CD: You’re basically saying that Walgreens was retaliation for something the College Board did?
GN: I just meant that this needs to stop and it needs to be called out. And I called it out with the College Board, but I had no leverage. We were going to use our market power. Absolute. It cannot be used only on one side.
And this is the point: this is not my natural state. This is not where I would like it to be. And the reality is that there is a regression and rollback of rights happening. And I can’t passively sit back and dream of regrets. I have three and a half years left, and I’m not going to look back and regret that I didn’t make it to this moment.
CD: What would you say to people who say what the governor is doing here is wrong? That part of living in a pluralistic society is that you’re okay with states doing things you don’t like, and it’s inappropriate to use the economy to influence them?
GN: I don’t think it’s inappropriate. These governors have a right to do what they do. They exercise their right. We practice ours. It’s not very complicated.
For more:
Conor Dougherty is an economics reporter for The New York Times based in Los Angeles.
Tell us
We are approaching the middle of 2023. What are the best things that have happened to you so far this year? What have your victories been? Your unexpected joys, big or small?
Let me know at CAToday@nytimes.com. Please include your full name and the city where you live.
And before you go, good news
A tourist spotted a giant fossilized tooth on a beach near Santa Cruz over Memorial Day weekend and posted a photo of it on social media.
Wayne Thompson, a paleontology collections consultant at the Santa Cruz Museum of Natural History, acknowledged that the tooth belonged to an ancient mastodon, a creature that became extinct 10,000 years ago. CBS News reports.
“This is (a) … molar of the Pacific mastodon, Mammut pacific, and an extremely important find,” Thompson responded to the tourist’s post. “Call me when you get the chance.”
Thompson went to the beach himself to try and find the fossil, but it was gone. It wasn’t until the next day that a local jogger encountered the tooth again on the same beach. He called the museum to report his discovery.
“I was so excited to get that call,” Liz Broughton, a visitor experience manager at the museum, said in a statement.
Thank you for reading. We’ll be back on Monday. Nice weekend.
PS Here it is today’s mini crossword.
Soumya Karlamangla, Briana Scalia, and Johnna Margalotti contributed to California Today. You can reach the team at CAtoday@nytimes.com.
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