Apr 29, 2026 · 1h 9m
Steve Hilton warns California faces a 1970s-style economic crisis
CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win
A leading conservative voice outlines the policy blueprint required for a Republican to win and govern a deeply blue California.
- 1California is experiencing severe economic stagnation comparable to the UK's 1970s Winter of Discontent.
- 2Reversing the state's affordability crisis requires radical tax simplification and housing deregulation.
- 3Addressing crime and homelessness demands systemic reforms to mental health and education systems.
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Steve Hilton compares California's current economic trajectory to the systemic collapse of 1970s Britain.
The brief
California gubernatorial candidate Steve Hilton argues the state is suffering from severe economic stagnation, drawing a direct parallel to the United Kingdom's devastating Winter of Discontent in the 1970s.
To reverse this decline, Hilton proposes a platform of radical tax simplification and aggressive deregulation of the housing market to restore affordability and stimulate growth.
The Republican candidate contends that California's compounding affordability and crime crises cannot be solved without systemic reforms to both the public education and mental health systems.
What was said on this episode
29 statements · 10 positive · 18 negative · 1 neutral
California has the nation’s highest unemployment and poverty rates.
“the state with the highest unemployment rate in the country and the highest poverty rate in the country”
Listen at 9:39
More than one-third of Californians cannot afford basic needs.
“over a third of Californians cannot afford to meet basic needs”
Listen at 9:57
California workers earning $70,000–$90,000 pay a 9.3% state income tax.
“people earning 70 grand, 80 grand, 90 grand. In California, they are paying 9.3% state income tax”
Listen at 11:22
Hilton’s tax plan would reduce California revenue by approximately 18.5%.
“the cost is to get to that cost, you've got to reduce spending, exactly as you say. And basically the cost of that in total is about an 18.5% reduction in revenue”
Listen at 12:54
The proposed tax cut would return California’s budget to roughly its pre-pandemic level.
“this is just bringing the budget back to achieve that entire tax cut would bring the budget back just to where it was roughly before the pandemic”
Listen at 13:25
Hilton’s team estimates substantial fraud in California government spending.
“the fourth one was an estimate of the total, and we just went through published data from the state auditor, from Medicaid, error rates and so on, to make an estimate of the total amount of fraud”
Listen at 17:30
Hilton says $350 million in California cannabis-tax funds was misallocated.
“The first one was the cannabis tax, Proposition 64, legalizing cannabis. There's a tax associated with that. Supposed to be spent on substance abuse prevention. We found $350 million that was supposed to be spent on substance abuse prevention”
Listen at 18:58
Hilton estimates $425 billion in California waste, fraud, and abuse over five years.
“our estimate was 425 billion. So averaged over the years, it's about 80 billion a year. So it's around, you know, 20% or so”
Listen at 20:10
California candidates broadly agree the state is unaffordable, overregulated, and difficult for businesses.
“We're literally all saying the same thing in terms of the diagnosis of the problem. It's incredibly expensive to live here. People can't, you know, people are really struggling. The business climate is a disaster. We're massively over regulated. We cannot build anything. Everything takes too long, everything's too complicated.”
Listen at 23:07
A California billionaire tax would damage the state’s technology ecosystem.
“if the billionaire tax proposal goes through, I mean that absolutely puts, you know, I think that's a just complete disaster for the tech ecosystem”
Listen at 26:15
California businesses are close to leaving the state.
“You know, we are on the brink of leaving.”
Listen at 26:38
Insufficient housing construction is the major driver of California’s housing costs.
“The major driver is the fact that we just haven't built enough housing of different kinds.”
Listen at 29:37
Most CEQA lawsuits blocking housing are filed by unions.
“70% of CEQA lawsuits are used to block housing. Most of those lawsuits are filed by unions.”
Listen at 31:43
California prevailing-wage requirements often inflate construction costs.
“prevailing wage. Again, sounds very good, but it's two or three times market rate wages. So both of those things inflate the cost often.”
Listen at 32:10
Jason claims Texas produces three times California’s new homes per capita annually.
“in California has three times the new units per capita than California. So every year we produce three times as many new homes per capita.”
Listen at 32:48
California has the worst air quality in the United States.
“California still has the worst air quality in the country”
Listen at 37:12
California climate policies raise gas prices by discouraging in-state oil production.
“The fundamental reason that gas prices are so high is because again, in the name of climate, but without actually, actually in this case, it's counterproductive to climate. Instead of using the production that we have here in California”
Listen at 38:23
California imports nearly 80% of the oil it uses.
“We are now importing nearly 80% of the oil that we use”
Listen at 38:43
Car technology, not electric vehicles, mainly drove California’s air-quality improvements.
“actually the main driver of this, of the air quality improvements in California, actually car technology”
Listen at 44:25
Only 35% of California students meet basic math standards.
“For math, it's 35%. So 2/3 do not meet the standards.”
Listen at 46:10
Phonics is the most effective method for teaching children to read.
“There's a technique called phonics. It's a way to teach kids to read. And it's totally clearly established as the most effective.”
Listen at 48:40
California prison transfers and overcrowded jails undermine local criminal accountability.
“That really undermines the kind of accountability that judges and prosecutors would want to seek at the local level”
Listen at 54:09
Hilton recommends reversing California’s prison-closure program and increasing capacity.
“stop and reverse the prison closure program, which is what I've committed to doing. Is it to increase prison capacity in California?”
Listen at 54:53
California local governments should remove homeless encampments from public streets.
“they have the power and the legal authority to remove every single homeless encounter. And they should.”
Listen at 58:23
California should require homeless people to undergo drug or alcohol recovery treatment.
“we've gotta get back to that. It can't be an option. You've got plenty of service providers who can do it. You've gotta require it.”
Listen at 59:02
California should redirect homelessness funds toward large-scale mental-health facilities.
“The third part of the plan is to take the money that's currently going into the homeless industrial complex, these ridiculous apartment units for people who should be either getting mental health care or recovery treatment, take that money and put it into modern large scale mental health facilities”
Listen at 1:01:03
Hilton predicts he will reach California’s general election runoff.
“I think that we're going to have a top two with myself and one other Democrat.”
Listen at 1:02:39
A majority of Californians currently favor political change.
“there's a majority for change in California”
Listen at 1:05:07
Hilton’s platform targets $3 gas, halved electric bills, and tax-free income under $100,000.
“my whole plan is geared toward a $3 gas, I call it Cal. Affordable $3 gas. Cut your electric bills in half, your first hundred grand, tax free.”
Listen at 1:07:19
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.