According to the CMA Soverign Risk Monitor, California is perceived to be the eight most likely government to default on their debt. While countries like Venezuela and Argentina are worse, Iraq with it’s continuing challenges of maintaining a stable government, is actually ranked better.
Meanwhile, California is wrestling with a $19.1 B as in Billion shortfall. Arnold, am I political fish or fowl, Schwarzenegger, has decided he’s fish in this debate and has called for an end to the California welfare system. In what has become expected, trite and completely in line with leadership shown in Washington, the Democrats, who control both houses in California, have said, “nope” and are chasing a plan to increase taxes.
In what has become a rare event, I applaud Schwarzenegger for calling out reality on this topic. California has been one of the hardest hit states during this recession. Increasing taxes will not only not close the budget gap but will exacerbate the economic challenges, likely making anywhere in Michigan a more appealing place for business development. Where I disagree wtih Arnold is that he continues to attempt to be a moderate and walk both sides of the fence.
Less than a week ago, Arnold stuck his nose into Arizona’s business. He derided the recently passed immigration laws and joked that he would likely be deported under the new Arizona law.
Estimates have California with over 2 million illegal immigrants, over twice the number of the next largest illegal population estimated in Texas. While you may say, “yeah, but they have a lot of other people,” you’d be right. But, that estimate also says that over 6 out of every 100 people are illegal immigrants in CA and the is over 3 times the national average.
Depending upon the study you choose to use, illegal immigrants cost the country somewhere between $40 and $80 billion each year. While the estimates I used earlier don’t reflect the total numbers of illegals believed to be in the US, it does likely represent the distribution across the states. That estimate showed that approximately 1/3 of the illegal immigrants in the US were in California. Let’s see…1/3 of $40 billion is about $13.3B. 1/3 of $80 billion is about $27 billion.
A quick suggestion for you Arnold, if you want to deal with your budget problem deal with the problem and not the symptom. If you want to fix the budget via an overhaul of the welfare system, you should start by fixing the problem that is causing your welfare problem to be so big…Illegal Immigration. An apology to the people of the State of Arizona would be a good place to start!
