2012-09-04

California circles the drain and the end of immigration in America

There is very little anti-immigration sentiment in the United States, although polling data shows public opinion is very far from that of political leaders. While amnesty for illegal aliens is the most discussed reform, the public favors enforcement. As social mood declines, the public mood will shift slightly, but the public policy is likely to undergo a "radical" shift because the political sphere is holding to an extreme position.

The public is less trusting of government and believes politicians and bankers pull the wool over their eyes or deceive them on various issues. Immigration remains part of American mythology, but statistics such as the one below may change minds. The solution to America's demographic problem is said to be immigration, but according to the data, immigration is actually dragging America deeper into the red. Immigration as it currently exists is a problem for America, not a solution.

California's Greek Tragedy
California's rising standards of living and outstanding public schools and universities once attracted millions seeking upward economic mobility. But then something went radically wrong as California legislatures and governors built a welfare state on high tax rates, liberal entitlement benefits, and excessive regulation. The results, though predictable, are nonetheless striking. From the mid-1980s to 2005, California's population grew by 10 million, while Medicaid recipients soared by seven million; tax filers paying income taxes rose by just 150,000; and the prison population swelled by 115,000.
67 new welfare recipients for every new taxpayer is not a recipe for success. Americans will face a choice: immigration or welfare. I suspect they will choose to preserve welfare/entitlements and halt immigration, especially if the economy weakens and the true cost of immigration is impossible to hide.

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