California Business Owner Criticizes Newsom’s Policies as ‘Death by a Thousand Cuts’
Local business owner voices concerns over California’s rising costs and regulations, impacting small businesses.
2 min read
CNN senior national correspondent Kyung Lah highlighted the growing dissatisfaction among California residents, particularly small business owners, regarding Governor Gavin Newsom’s management of the state. During an interview with Los Angeles business owner Tom Sopit, Lah revealed how Sopit’s restaurant, which survived the challenges of the COVID-19 lockdowns, is now closing due to a combination of crushing regulations, labor laws, and high costs.
Costs and Regulations Take Toll on Small Business
Sopit described the financial strain as a ‘death by a thousand cuts,’ noting that the cost of goods and labor is significantly higher than in other parts of the country. He emphasized the impact of rising insurance costs, which have been exacerbated by wildfires and the exodus of insurance carriers from the state. ‘Insurance is a big part of it, with the wildfires controlling the premiums and increases, all the carriers leaving the state, and that’s why it went up so quickly,’ Sopit explained.
He also pointed out the decline of Hollywood’s presence in California, as existing studios have moved to more affordable states and new startups have disrupted the state’s entertainment monopoly. This shift has had a ripple effect on small businesses, including those in the restaurant industry.
Disillusionment and Calls for Change
Despite having voted for Newsom in the past, Sopit has become a registered independent, expressing disillusionment with the current administration. He urged the next governor to focus on real challenges, emphasizing the need for tangible solutions rather than continued taxation. ‘Drive up and down the street. Get your hands dirty,’ he advised. ‘I think you can’t just keep taxing businesses and people. How are we just keep paying more taxes, but somehow the state just keeps going downhill? That doesn’t make sense.’
Lah later discussed the interview with CNN’s Dana Bash, highlighting affordability as a key issue for voters like Sopit. ‘We’re talking about structural things, like being able to pay for your insurance,’ she said. ‘Then the fees for businesses, the regulations that restrict you from being able to build stuff. All of it is just crushing. And we’re not talking about Sopit trying to be rich.’
Lah added that Sopit’s parents, who were immigrants and had a successful restaurant in Los Angeles, faced challenges that their son could not overcome. This, she noted, could have significant implications for future political candidates, including Newsom, as he considers running for higher office.
Source: The Gateway Pundit
