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Fareed Zakaria Calls California a 'Failing Model of Governance' Despite Economic Strength

His on-air critique highlights rising per-person spending, housing shortages, large domestic outflow, signaling that policymakers are not delivering for middle-class residents.

Overview

  • On Sunday Zakaria argued that California combines world-class assets with a governance problem, saying state spending has risen more than 200% since 2000 to roughly $6,300 per person.
  • He identified housing as the state’s central failure and blamed restrictive zoning and regulatory red tape for a chronic shortfall in new homes and high costs.
  • Zakaria said the state lost a net 1.9 million people to domestic migration over the past seven years and tied that outflow to worsening affordability for middle-class families.
  • He pointed to growing visible homelessness and stagnant education results despite higher spending as evidence that increased budgets have not fixed key problems.
  • Coverage of the remarks has run across ideologically different outlets that framed the critique as a warning to Democratic leaders and cited recent election results, while noting Zakaria did not mention Governor Gavin Newsom by name.