More stories

  • in

    Jeffrey Katzenberg Talks About His Billion-Dollar Flop

    The public failure of his start-up Quibi hasn’t stopped Jeffrey Katzenberg from doubling down on tech. A Hollywood power broker, he headed up Disney in the 1980s and ’90s and co-founded a rival studio, DreamWorks, before finding a puzzle he could not yet solve: getting people to pay for short-format content. Investors gave him and the former Hewlett-Packard C.E.O. and California gubernatorial candidate Meg Whitman $1.75 billion to build a video platform, but not enough customers opened up their wallets, at $4.99 a month, and Quibi folded within a year of its launch. Katzenberg says the problems were product-market fit and the Covid pandemic, not competition from TikTok or YouTube.[You can listen to this episode of “Sway” on Apple, Spotify, Google or wherever you get your podcasts.]In this conversation, Kara Swisher and Katzenberg delve into Quibi’s demise, the shifting power dynamics in Hollywood and his pivot to Silicon Valley. They also discuss his influence in another sphere: politics. And the former Hollywood executive, who co-chaired a fund-raiser to help fend off California’s recent recall effort, offers some advice to Gov. Gavin Newsom.(A full transcript of the episode will be available midday on the Times website.)Photograph by WndrCoThoughts? Email us at sway@nytimes.com.“Sway” is produced by Nayeema Raza, Blakeney Schick, Matt Kwong, Daphne Chen and Caitlin O’Keefe and edited by Nayeema Raza; fact-checking by Kate Sinclair; music and sound design by Isaac Jones; mixing by Carole Sabouraud and Sonia Herrero; audience strategy by Shannon Busta. Special thanks to Kristin Lin and Liriel Higa. More

  • in

    California’s Housing Crisis Looms Large for Gavin Newsom

    Having survived a recall vote, the governor is free to focus on the state’s homeless population and housing shortage. He has more room to maneuver than he did when he first took office.The median home price in California has eclipsed $800,000. Tenants in the state are among the most cost-burdened in the country. Each night more than 100,000 residents sleep outside or in their cars. A crisis, a disaster, the religion of sorrow, a disgrace — whatever journalists and politicians call it, people across the state, including all the major candidates for governor in the recall vote this week, agree that the situation is untenable.The question is what, if anything, the governor can do about it. It’s something that Gov. Gavin Newsom has spent the past three years talking about. And now that he has won a decisive victory in the recall election, which cost close to $300 million and consumed the state’s and governor’s attention for several months, Mr. Newsom is turning his attention back to problems like housing.In many ways the answer there is different from what it was when he took office in 2019.Right now the focus is Senate Bill 9, which would allow duplexes in neighborhoods throughout the state and is one of the hundreds of unsigned bills that piled up on Mr. Newsom’s desk during the recall campaign. But even if Mr. Newsom signs it, which he is widely expected to do in the coming days, his legacy on housing is likely to be less about laws passed on his watch than his administration’s ability to enforce them. That’s because the executive branch has gained much more power over state housing policy than it had even a few years ago, after years of state frustration with how difficult the local governments make it to build housing in California.Mr. Newsom’s administration has come to embrace the role, taking action like suing cities for not building enough to keep up with population growth and creating a team to ensure that cities approve new housing. The moves are part of a nationwide shift in power — away from city councils and toward statehouses — over the $1 trillion annual residential construction market.“It used to be that housing was run by the local planning departments and California governors didn’t really pay attention,” said Ben Metcalf, managing director of the Terner Center for Housing Innovation at the University of California, Berkeley. “That has changed.”Mr. Newsom, a Democrat, has tried to get through the pandemic emergency by extending the state’s eviction moratorium even as the federal one lapsed, and pouring money from the state’s budget surplus and various coronavirus relief packages into homeless funding and programs like an effort to turn hotels into supportive housing.But California remains one of the most difficult places in America to build housing, causing a supply-and-demand imbalance. It is the leading edge of a nationwide problem that is pricing middle-income families out of ownership and has one in four rental households paying more than half its pretax income on rent.A polling site in El Centro, Calif., on Tuesday, when a statewide vote kept Gov. Gavin Newsom in office.John Francis Peters for The New York TimesPlanners, economists and both political parties have long called for states to use their power to ease the housing shortage by breaking local logjams. They point out that suburban governments have little incentive to fix the problem since they are accountable to homeowners who prefer that prices only go up. That conundrum has vexed would-be housing reformers since at least the 1970s, and emerged during California’s recall campaign in the Republican debates, where candidates talked a lot about adding more housing but shied away from discussions of where that housing would go.These often contradictory comments were a perfect encapsulation of Californians’ mood: They are universally unhappy with the state’s cost of living and the tent cities that have appeared along freeways, in parks and on beaches. But homeowners remain fiercely protective of their power to say what gets built near them. Kevin Faulconer, a former San Diego mayor and a Republican candidate in the recall election, all but ran away from his own pro-density policies in California’s second-largest city by saying, “When we see some of these pieces of legislation that want to eliminate single-family zoning in California, that’s wrong.”Mr. Newsom has tried to walk this same line. In 2018, he campaigned on a “Marshall Plan for housing” that had a goal of delivering 3.5 million new housing units by 2025. He came to regret the figure once he was in the governor’s chair, and it became fodder for his leading recall opponent, the talk show host Larry Elder, who seized on it as an example of broken promises. Mr. Elder did not need sophisticated research to find fault with the number: In a state that permits around 100,000 housing units a year, delivering 3.5 million — 35 years of housing at the current pace — is close to a physical impossibility.Mr. Newsom has been mostly quiet about big zoning legislation ever since. He did not take a position on Senate Bill 50, a contentious measure that would have allowed apartment buildings in neighborhoods across the state. And he was largely quiet about Senate Bill 9 as it passed through both houses of the State Legislature and lingered on his desk.Mr. Newsom, at a rally on Monday in Long Beach, Calif., has emphasized enforcement of existing housing laws.Doug Mills/The New York TimesWhat he has done instead is enforce existing laws more aggressively than his predecessors did. Two weeks after Mr. Newsom assumed office, California’s attorney general sued Huntington Beach for failing to plan for sufficient new housing. Since then, the state’s Department of Housing and Community Development has sent hundreds of letters telling cities to change or simplify their planning codes to comply with state law.The governor’s most recent budget allocated $4.3 million to staff a “housing accountability unit” made up of planners and lawyers who will monitor local governments’ housing decisions and intervene when they’re not following state law.Zoning defines a neighborhood’s physical character and who might be living next door, so it has captured most of the attention in California’s housing debate. But over the past few years, the Legislature quietly passed a slew of smaller measures that when strung together have radically changed the relationship between state and local government. The new rules change how much housing cities have to plan for, make it harder for them to stop developers from building and ultimately deprive them of funding and local control if they drift too far from state mandates.Because they transfer more oversight of housing from localities to Sacramento, the question of how aggressively those laws are enforced has fallen to the executive branch. It’s one thing for the state to pass laws to desegregate neighborhoods, set aside more land for subsidized housing and require cities to permit backyard cottages. If enforcing them isn’t a priority — which has long been the case with housing laws — they are bound to be ignored.In an interview after the recall vote, Jason Elliott, a senior counselor to Mr. Newsom who works on housing policy, rattled off a series of bill numbers and the esoteric text of planning codes to point out dozens of housing regulations that remain mostly unused. Environmental measures that support increasing density to reduce car trips. Various laws allowing backyard units. A way for developers to sue cities that don’t follow their own zoning rules. These are the types of statutes the new housing accountability unit will try to enforce.“I’m never going to say we’re done passing laws and we can’t do more,” Mr. Elliott said. “But what we really need to do if we want to see units spring up is get several dozen people thinking about this and only this, and empower them to reach out to cities.”Will Mr. Newsom ever get anywhere near 3.5 million new units? No. Even if it were politically possible, it would strain lumber and labor supplies.It took California several decades to get into a housing crisis this bad. Lofty rhetoric and promises for millions of units make do for a campaign slogan, but the reality looks more like a process of slowly digging out. More

  • in

    Newsom Beat the Recall, Now Comes the Hard Part: Governing California

    Gov. Gavin Newsom is facing multiple crises. Ninety percent of California is in extreme drought. The median home price has eclipsed $800,000. Some 100,000 people are sleeping outside or in their cars.SACRAMENTO — For nearly a year — while a pandemic raged, while wildfires roared, while smoke smothered the once-pristine blue skies over Lake Tahoe — Gov. Gavin Newsom has had to simultaneously govern the nation’s most populous state and beat back an attempted recall.On Wednesday, he emerged victorious — but still had multiple crises to confront. Ninety percent of the state was in extreme drought. The median home price had eclipsed $800,000. Some 100,000 people were sleeping outside or in their cars nightly. And more than 6 million public school children were struggling to make up the learning they had missed because of the coronavirus pandemic.Hundreds of bills on his desk waited to be signed, including one to allow duplexes in single-family neighborhoods across California and another enshrining the vote-by-mail rules that helped keep him in office.The election’s resounding rejection of the long-shot, Republican-led attempt to oust Mr. Newsom appeared not only to strengthen him for re-election next year, but also to bestow a mandate. As the vote count continued on Wednesday, the recall was being rejected by roughly 2-1. The margin echoes the state’s Democrat-Republican split and the scale of Mr. Newsom’s 2018 election, which was a landslide.Voters cast their ballots at Salazar Park in Los Angeles on Tuesday.Allison Zaucha for The New York TimesBut what the governor can do with that mandate is unclear. The recall campaign was long and divisive, political experts say, and the state’s problems increasingly resist simple solutions. Many more straightforward challenges were met last year with a massive state surplus and a flood of pandemic aid from the Biden administration.Now — although Mr. Newsom has the advantage of a unified base, a Democratic supermajority in the Legislature and the state’s attention — what remains are issues that require far more than money.“These are problems that take time,” said Jerry Brown, who governed the state for two eight-year stints in the 1970s and again from 2010 to 2018. “Reducing carbon emissions. Reversing the gross inequalities. Being able to keep the crime rate down. Dealing with so many people who have so little that their lives and families are disintegrating.”The recall, Mr. Brown said, was “sound and fury signifying very little” — an “expensive blip” that in a couple of weeks “will be not much more than a footnote.” But, he said, “it’s down now to the bread and butter issues. And they’re the same old issues that have been around for a long time in modern California.”Mr. Newsom offered few details during his campaign on how he would tackle these challenges, in part because of the tenor of the recall. The Republican candidates seeking to replace him framed the campaign as a referendum on him, from his handling of homelessness to the rise of urban crime rates and his decision to party at a luxe wine country restaurant after he had asked Californians to stay home during the pandemic. Larry Elder, who lost a bid to replace Gov. Gavin Newsom, thanks supporters who attended his election night party in Costa Mesa after polls closed Tuesday night.Mark Abramson for The New York TimesBut except for his coronavirus policies, which have been pointed to as a potential national model, the governor largely avoided making his agenda part of the recall discussion. Aiming to animate the state’s Democratic base in an off-year special election, he portrayed the recall as a battle to rescue the nation’s biggest blue state from hard right extremists, and as part of a larger, national war on the divisiveness of former President Donald J. Trump and the Republicans who admire him.Outside a victory party afterward, he acknowledged the challenges that await him, but resisted much elaboration.“Let the dust settle,” he said.At least part of the calculus will include next year’s regularly scheduled gubernatorial election. Although the governor is unlikely to face much meaningful opposition, 2022 is a regular election year — a time when controversial legislation tends to be set aside.“It will be interesting to see what he wants to focus on,” said Toni Atkins, the president pro tempore of the California Senate, noting that much of the Legislature also will be campaigning. The dominance of Democrats in the State Senate and Assembly masks an often unwieldy range of views — Bay Area progressives, Central Valley moderates, coastal environmentalists, jobs-first pragmatists.Voting at Central Baptist Church in El Centro. Californians rejected the recall by about 2-1 as of Wednesday morning.John Francis Peters for The New York TimesThe challenge was apparent even within the county-by-county recall tallies, with huge majorities for the governor in Democratic strongholds such as Los Angeles and the Bay Area, thinner margins in San Diego and Orange County and much of the far rural north voting to replace him.Legislation of remarkable sweep quietly passed this year, even as the recall consumed the public’s attention, Ms. Atkins said: preschool for all of the state’s 4-year-olds, stimulus checks for low- and middle-income people, health insurance for undocumented immigrants 50 and older.But climate bills stalled, casualties in many cases of the split between parts of the state that prioritize jobs and parts that prioritize action on climate change.She predicted the governor would resume work on priorities he had held from the start of his administration, including affordable housing and early childhood education. But, she added, his victory has whetted legislative ambitions, too.The fifth-largest economy in the world and home to some 40 million people, California is known both for its bounty and for its epic flaws. It leads the nation in billionaires; when housing is factored in, it also has America’s highest poverty level.Its coastline is renowned, but towering wildfires, burning over as much as a million acres, have become a terrifying annual occurrence. A mega-drought has sent the price of agricultural water soaring and tens of thousands of farms are on reduced water rations.One hurdle in carrying out ambitious policy objectives, experts said, was a political lesson that emerged from the recall: Polarization pays. Governor Gavin Newsom delivers remarks on the state’s wildfires in Sacramento on Monday.Doug Mills/The New York TimesPartisan rhetoric mobilized voters on both sides, handing Mr. Newsom his win and raising the profile of an otherwise withering Republican Party. Any group that, in the past, might have been daunted by the challenge of launching a statewide recall learned that even a lost cause can disrupt an opponent for months, Mark Baldassare, president of the nonpartisan Public Policy Institute of California, said.But that isn’t necessarily conducive to governance, he added.“This recall election has just really stirred the pot,” said Mr. Baldassare. “Will people find common ground? It’s going to be hard.”Fernando Guerra, a professor and the director of the Center for the Study of Los Angeles at Loyola Marymount University, said the governor has every tool at his disposal to take bold action if he wants to — a supportive White House, a legislative supermajority, a state surplus and billions of federal dollars in pandemic aid. Leveraging those advantages could leave a legacy to rival the state’s most iconic governors, he said, including Jerry Brown and his father, who governed in the 1960s, Edmund G. “Pat” Brown.“California will be positioned to have the most extraordinary two or three years of government and state-led innovation since the Pat Brown era — or California could be mired in political paralysis and doomed to incremental decline. And it will all depend on Gavin Newsom,” he said.“If crises are opportunities, then this is the greatest opportunity any sitting governor in America will ever have.”Thomas Fuller contributed reporting from Sacramento. More

  • in

    Democrats Continue to Struggle With Men of Color

    The big headline is that the California recall failed. Democratic Gov. Gavin Newsom gets to keep his job. He handily fought off the Republican challenge.But there is a worrisome detail in the data, one that keeps showing up, one that Democrats would do well to deal with: Black and Latino men are not hewing as close to the party line as Black and Latina women.There are, of course, issues with exit polls, and results often change as more votes are counted. But that said, the California exit polls do seem to reflect what polls have shown for some time now.In CNN’s exit poll, nearly half of the Hispanic men surveyed and nearly a quarter of the Black men voted to support the recall. The largest difference between men and women of any racial group was between Black men and Black women.Even if these numbers are later adjusted, the warning must still be registered.For many of these men, saying Republicans are racist or attract racists or abide racists isn’t enough.For one thing, never underestimate the communion among men, regardless of race. Men have privileges in society, and some are drawn to policies that elevate their privileges.For instance, many Black and Hispanic men oppose abortion.Some men liked the bravado of Donald Trump and chafed at the rise of the #MeToo movement. Some simply see trans women as men in dresses and want to carry guns wherever they want.The question for Democrats is how do they lure some of these men back without catering to the patriarchy. From a position of principle, the party can’t really appeal to them; it must seek to change them.Add to the patriarchal issues a sense of disillusionment with the Democratic Party and its inability to make meaningful changes on the issues that many of these men care most about, such as criminal justice reform and workplace competition. Democrats often resort to emotional appeals in election season, telling minorities that they must vote for liberal candidates as a defense, to prevent the worst. But many of these men believe that the Democrats are just as bad as the Republicans.The idea of always playing defense and never offense is, well, offensive.Instead, Democrats have to craft a message of empowerment and change. They have to say to these men that they don’t have to operate from a position of weakness and pleading, holding back the forces that would otherwise overwhelm them.To be honest, a robust, offensive messaging campaign would resonate with all people who tend to vote Democratic — men and women.The truth is that in a two-party system, voters have only two choices, so protest votes are self-defeating, as is sitting out elections or supporting the opposition to scare your favored side into better behavior.In a two-party system, if you don’t want the Trump Republicans to win, you must vote Democratic. You are trapped in that way, and no one likes the feeling of being trapped.But “trapped” is not an inspiring campaign message, particularly to people who spent a lifetime feeling trapped and have tired of it, as these men have.Yelling at them isn’t going to work, neither is shaming them or thinking that you are “educating” them.My fear is that these men will continue to drift away from the Democratic Party, not because the Republican Party is the most welcoming of spaces, but because Democrats cannot or will not do more to appeal to Black and Latino men.To my mind, the Democratic Party must do a few things:Admit that it makes many promises to Black people in election seasons that it not only doesn’t accomplish, but sometimes doesn’t even take up.Acknowledge that many of these men feel that the system itself has failed them, that the status quo has failed them.Give the plight of Black and brown men the same prominence that both parties have given the plight of working-class white men.Black and brown men need to feel that they are being seen as more than victims of a predatory justice system or part of the so-called immigrant crisis. They need to be rendered in full and seen as whole.When they are not, it leaves an opening for Republicans to exploit, and conservatives have done a clever job of doing just that in recent elections.If you are like me, you are thinking: These men should know better. They are voting in ways that invite injury or not voting at all. They shouldn’t be coddled. The world is sick of coddling selfish men.But we, too, are stuck in this two-party system, and as such, we must do whatever it takes to prevent calamity and eek out progress.In that world, when men of color vote against the interests of people of color and out of the male ego, we must gingerly talk them down rather than aggressively chant them down.The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.Follow The New York Times Opinion section on Facebook and Twitter (@NYTopinion), and Instagram. More

  • in

    What Exit Polling Tells Us About Voters in the Recall

    The only exit poll from California’s recall election showed Mr. Newsom winning with an unusual coalition. In a departure from nearly every recent election, longstanding racial and ethnic divides between white voters and voters of color seemed to vanish.According to the exits, 63 percent of people of color and 60 percent of Latino voters chose “No” on the question of whether to remove the governor, compared to 59 percent of white voters. Typically, Democrats fare somewhat worse among white voters in California, but much better among other voters. The 63 percent and 60 percent showings of people of color and Latinos would be the weakest for a California Democrat in memory.If true, the exit poll result would mark a seminal moment in California’s political evolution. It would suggest that growing Democratic strength among college graduates — and weakness among those without degrees — has begun to significantly reduce the gap between white voters and others, and nearly eliminate it altogether in the state.But the actual results of the recall election tell a different story. They don’t show much of anything unusual at all. The results suggest that Mr. Newsom won with a fairly typical coalition for a California Democrat in recent years, one not too dissimilar from the one that elected him in 2018 and elected President Biden in 2020.The governor may have fared somewhat worse among nonwhite voters than Democrats did a decade ago, but in the end, California voted for the Democrat — and it seems to have done so in about the same way it has in recent cycles, including among Asian and Latino voters.Millions of votes remain to be counted, and a clearer picture may emerge in the coming days as more votes are tallied. But so far, the county-by-county results are nearly identical to those from 2018 or 2020. There’s only one county — Riverside County — that flipped from 2018 so far, and it flipped to Mr. Newsom.On average in the recall election, the “No” vote in a typical county was only about 2 percentage points different than Mr. Newsom’s vote share in 2018. It’s hard to reconcile the stability of the results so far with the huge shift in Mr. Newsom’s coalition indicated by the exit poll. The results don’t show evidence of a stark drop-off in Democratic support among Latino voters, either.Mr. Newsom performed about as well as he did four years ago in relatively diverse Southern California, including in heavily Latino stretches of the rural Central Valley and the Imperial Valley, where Democrats only compete on the strength of Latino voters.Still, Mr. Newsom’s support there was already relatively weak for a Democrat: He often fared about as poorly as Mr. Biden, and worse than Gov. Jerry Brown did in 2014. The 2018 exit poll showed Mr. Newsom winning 64 percent of Latino voters, down from the 73 percent share won by Mr. Brown in 2014.The exit poll on Tuesday was conducted by Edison Research and sponsored by major television news networks. Unlike traditional in-person exit polls, most California exit poll interviews are typically conducted by telephone to reach early and mail-in voters. This year, the recall exit poll added an online and text message component.It is possible the additional online and text interviews may have contributed to some of the unusual shifts that were apparent in the poll. More