California holds the distinction of being the world’s fifth-largest economy; however, gubernatorial contender Stephen Cloobeck acknowledges that the state is not very affordable for a lot of its inhabitants.

“Throughout my career, I’ve transformed some of the most struggling businesses, and I see California as experiencing similar struggles,” said Cloobeck, the former chairman and CEO of Diamond Resorts, during an interview on “Now” on Friday.

To address these challenges, his strategies include overhauling and streamlining California’s entertainment tax credit program to “strengthen our most significant export.” Cloobeck pointed out that California is losing ground to some of its rivals, such as the state of Georgia.

The 63-year-old, who frequently appeared on the CBS reality TV show “Undercover Boss,” is one of several Democrats expected to run for California governor in 2026. The field may include former Vice President Kamala Harris, who is said to be weighing a run.

The economy of California, with a gross domestic product of more than $3.5 trillion, ranks fifth in the world, behind the United States, China, Germany and Japan. Cloobeck said tariffs hurt consumers with cost add-ons.

“If we’ve got these great worldwide economies, and I believe in free trade, why don’t we sit down with our partners and say, ‘Look, we’ve got a little trade imbalance here. Let’s see if we can find another way of working it out and equalizing it,’” he said.