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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.