U.S. Treasury Secretary Scott Bessent delivered a sharp rebuke of California Governor Gavin Newsom during a recent appearance on the Ruthless Podcast, mocking Newsom’s high-profile trip to the World Economic Forum in Davos and tying it directly to the steady departure of major corporations from California. Bessent quipped that Newsom “had to go to Davos to see all the CEOs he chased out of California,” a line that quickly gained traction as a pointed critique of the state’s business climate.

The remark followed reports of a tense exchange in Davos, where Newsom interrupted a panel featuring Bessent and hurled insults, including comparing President Donald Trump to a “Tyrannosaurus rex” that global leaders must “mate with or be devoured by.” Bessent’s response reframed the episode as political theater, suggesting that Newsom’s international posturing contrasts sharply with the economic realities facing businesses operating under California’s high-tax, high-regulation environment.

Newsom’s office pushed back by citing data showing business registrations in California rising from roughly four million in 2019 to more than 4.3 million in recent years. Supporters of the governor argue this demonstrates economic resilience and continued entrepreneurial activity despite national and global headwinds. Critics, however, counter that raw registration numbers obscure the loss of major corporate headquarters and high-paying jobs.

High-profile relocations have fueled that criticism, with companies such as Chevron and Tesla moving their headquarters or significant operations to states like Texas, citing lower taxes, lighter regulation, and a more predictable business environment. For opponents of Newsom’s policies, these moves represent a deeper structural problem that small-business formation statistics cannot offset.

Bessent’s jab positioned him as a forceful and media-savvy defender of the Trump administration’s economic agenda, which emphasizes deregulation, tax competitiveness, and domestic investment. The exchange also underscored a broader political divide, with California’s leadership increasingly casting itself as a counterweight to President Trump while administration officials highlight what they see as the tangible costs of progressive governance.

As debates over economic competitiveness intensify, the clash between Bessent and Newsom encapsulates a familiar question in American politics: whether global visibility and rhetorical resistance can outweigh the practical consequences of policy choices on jobs, investment, and corporate confidence.