Editorial: Newsom shows how to lose businesses and insult entrepreneurs

The Editorial Board, Las Vegas Review-Journal on Sep 3, 2025

Published in Op Eds

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

Most states want to woo new businesses. California Gov. Gavin Newsom and Democratic lawmakers in Sacramento are trying the opposite approach.

Recently, Bed Bath & Beyond opened its first location since filing bankruptcy two years ago and closing hundreds of stores. Along with its online operations, it now plans to debut hundreds of new physical locations. But there’s one state it will avoid entirely.

“We will not open or operate retail stores in California,” the company’s Executive Chairman Marcus Lemonis said in a statement. “This decision isn’t about politics — it’s about reality. California has created one of the most overregulated, expensive and risky environments for businesses in America.”

There are several ways a governor could respond to a high-profile public critique like this. One could simply ignore it, knowing the news cycle moves quickly.

Another option would be to call Lemonis and see if the state could address his concerns. Companies want to make money. If Gov. Newsom could help remove the problems identified by Lemonis, presumably his company would be eager to serve such a larger market.

Perhaps Newsom would have taken one of those paths if he wasn’t desperately trying to mimic President Donald Trump.

“After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath &Beyond no longer existed,” Gov. Newsom’s press office wrote on X. “We wish them well in their efforts to become relevant again as they try to open a 2nd store.”

Gov. Newsom seems to think that his new online trolling persona will endear himself to Democratic primary voters. He’s obviously attempting to bolster a potential 2028 presidential bid. But he should be more concerned about the welfare of his residents.

While few businesses are this vocal about their concerns, they are widely shared. Recently, the Los Angeles Times featured a story on “why companies born and raised in California are leaving the state.” Prominent departures include In-N-Out Burger, SpaceX and Chevron. Since 2014, the state has annually lost more existing businesses than it has gained. By the numbers, California’s economy remains large. But that’s because of its systemic advantages, not the result of competent governance.

Fixing those problems would require Newsom to acknowledge that liberal policies, including many of his own proposals, are bad for business. That level of humility and introspection would be good for California, but bad for his presidential prospects.

Expect the insult comic routine to continue until Newsom decides Democratic primary voters want their leaders to actually promote prosperity, entrepreneurship and economic growth.

_____