California Gov. Gavin Newsom came into office promising to protect consumers from the rising cost of living. More than six years later, however, many Californians would argue that the affordability crisis has only become more severe.
To be fair, Newsom has faced extraordinary challenges beyond his control, including the COVID-19 pandemic, global inflation, supply-chain disruptions and geopolitical conflicts that pushed energy prices higher. Yet residents continue to pay some of the nation’s highest prices for gasoline, housing, electricity, insurance and groceries. The question many voters are asking is simple: Where are the results?
Since taking office, Newsom has repeatedly blamed oil companies and market manipulation for California’s high gasoline prices. His administration created a petroleum market watchdog, expanded state oversight of refinery profits and promoted legislation aimed at preventing excessive price increases. More recently, California Attorney General Rob Bonta has launched investigations into “surveillance pricing,” in which companies allegedly use consumer data and algorithms to charge different customers different prices.
Protecting consumers from price gouging and anti-competitive behavior is an appropriate responsibility of government. Companies that illegally manipulate prices should be held accountable.
But enforcement alone cannot solve California’s affordability problem.
The state’s gasoline prices remain among the highest in the country. Critics argue that California’s high fuel taxes, Low Carbon Fuel Standard, cap-and-trade program and strict environmental regulations have significantly increased costs. Newsom counters that international oil markets and refinery behavior are the primary drivers. The truth likely lies somewhere in between.
The same pattern appears in housing. State leaders have encouraged office-to-apartment conversions, streamlined permitting and expanded incentives for affordable housing. These are positive steps, but they have yet to produce enough housing to ease prices in one of America’s most supply-constrained markets.
Insurance premiums continue to rise. Electricity costs remain among the nation’s highest. Grocery bills have climbed. For many middle-class families, every essential expense seems to move in only one direction β upward.
California’s affordability crisis is therefore not simply a law-enforcement issue. It is a structural problem.
Investigations may discourage illegal conduct, but they do not increase fuel supplies, build homes, reduce regulatory costs or improve market competition. Prosecutors can punish violations after they occur; they cannot lower prices through criminal investigations alone.
This distinction is increasingly important as political pressure grows. Poll after poll shows that the cost of living has become one of the top concerns among California voters. Economic growth and low unemployment mean little if families feel they are falling further behind every month.
The challenge for Newsom’s administration is not merely to identify who is responsible for high prices. It is to create policies that make California more affordable over the long term.
That will require more housing construction, stronger competition, greater energy reliability, efficient regulation and a careful balance between environmental goals and consumer costs.
As Newsom approaches the final stretch of his governorship, affordability may become the defining measure of his legacy. Californians are looking beyond headlines about investigations and lawsuits. They want tangible results that show up in their monthly budgets.
In the end, voters are unlikely to judge this administration by how many companies it investigated. They will judge it by whether everyday life became more affordable.
