NOTE: PLEASE say if you DON'T want your name and/or email address published when sending VDARE email.
From: John H. Ciccolo, Jr. (e-mail him)
Re: Pat Buchanan's Column: Crash of 2008—The Party's Over
If we use Rubenstein's $346 billion cost estimate for illegals per annum and multiply by two, we have $692 billion of the "needed" $700 billion. (Read Rubenstein's analysis here.)
Thus, the federal government can issue 2-year notes, deport the aliens and in the meantime we can scrounge around for $8 billion shortfall.
Ciccolo is a former economics professor and systems engineer. His letter predicting Mexico's inevitable collapse is here. Other Ciccolo letters regarding English-only at Geno's Steak House and his contemplated move out of New York are here and here.
Ed Rubenstein replies: I'm flattered that our correspondent thinks my analysis can help solve this horrible financial crisis.
It can, of course, but only as part of a much wider bailout plan. As noted, I estimate that immigrants cost the federal government about $346 billion annually.
This is a gross figure, reflecting the spending received by (legal and illegal) immigrants, as well as the revenues lost as natives who compete with low-wage foreign-born see their incomes—and federal tax liabilities—fall.
Immigrants do pay taxes, however. I estimate that as much of half of the gross loss—or about $173 billion—is recouped by their taxes, leaving a like amount as a net drain on Treasury.
Bottom line: instead of 2-year bonds, Mr. Paulson should issue 4-year bonds, financed by the economic gains from instituting sensible immigration policies.
Admittedly, four years is a long time.
But it's not nearly as long as the dysfunctional policies that have brought us to this point have been in place.