California Governor Gavin Newsom is escalating his criticism of President Donald Trump's economic policies, claiming they're designed to benefit billionaires while ordinary Americans struggle to get by. The comments sharpen what's shaping up to be an ideological battle between the two as both eye potential 2028 runs.
When Good Numbers Tell a Bad Story
On Thursday, Newsom posted on X: "Americans are being forced to live on the edge in an economy that is built to serve billionaires — not the working class."
He included a clip from his recent appearance on The Ezra Klein Show, where he made the case that headline statistics about growth and soaring markets miss what's actually happening in people's lives. "We're talking about the economy. We're not talking about the American people," Newsom said, adding that "systemically, for decades, this economy has not been working."
It's an interesting argument: what if the scoreboard says you're winning, but most of the team feels like they're losing?
Seven Stocks and Two-Thirds of Everything
Newsom laid out some striking numbers on wealth concentration. "Ten percent of people own two-thirds of the wealth; half the consumer spending is that top 10 percent. The stock market is seven damn stocks. Maybe 10, but primarily seven. Mostly in California."
He's not making this up. Federal Reserve data from June confirms that the top 10% of U.S. households hold roughly two-thirds of total wealth, while the bottom half owns barely a sliver. Research from Moody's shows America's top 20% of earners now account for more than half of consumer spending, and the wealthiest 10% capture the bulk of stock market gains.
The Billionaire Tax and Trump's Counterargument
Newsom's comments come about a month after supporters filed the proposed 2026 Billionaire Tax Act, which would slap a one-time 5% levy on roughly 200 California billionaires. The governor hasn't explicitly endorsed or opposed it yet.
Trump and his team push back hard, arguing their policies lift all boats. They point to steady GDP growth, cooling inflation, and record stock market highs. In a November interview, Trump claimed that "401(k)s are double what they were a year ago" and insisted market gains reach working families through retirement accounts.
So who's right? Maybe both, in a way. The economy can be genuinely strong by traditional measures while also leaving a lot of people feeling left behind. That's the paradox Newsom is trying to highlight, and it's becoming a central fault line in American politics.