On April 3, BlazeTV host Christopher Rufo released an investigative report in City Journal documenting fraud in the state of California under current Democrat Gov. Gavin Newsom. According to his team’s research, California lost at least $180 billion to fraud and improper payments in programs like Medi-Cal (California’s Medicaid), unemployment insurance, and general welfare since Newsom took office in 2019.
Rufo believes targeting domestic fraud is a fool-proof “political winner” for the Trump administration — certainly more than the Iran war, which he says is “at best a 50/50 issue.”
“Portraying Minnesota and New York and California and other bastions of blue governance as havens of outright fraud, ripping off taxpayers, seems like the kind of domestic policy agenda — along with immigration, along with a couple of other issues — that can be a winner, both substantively … but also politically,” he tells “Rufo and Lomez” co-host Jonathan Keeperman.
Keeperman wholeheartedly agrees: “[Domestic fraud] is such a good thing for us to be focusing our attention on, not just because it’s a huge problem that we need to eradicate from our public life and is creating all sorts of downstream pathologies that are making everyday life just more difficult for ordinary Americans, but because it also demonstrates … the problems of democratic governance.”
The best part is that large-scale fraud isn’t even that difficult to uncover.
“A guy like Nick Shirley just takes a camera, finds some public documentation, and just goes and knocks on some doors, and you can uncover that easily hundreds of millions, if not billions, in fraud,” he says, “and so yes, this is the best message for the GOP and for Republicans going forward.”
The mass exodus of people from California, Keeperman argues, is evidence that domestic issues are what people care about most.
“California has, despite being one of the nicest places to live in the country, has net out domestic migration and has had net out domestic migration for the last decade, if not longer,” he says.
“People are voting with their feet on this, and so yes — this is all just to say [domestic fraud] is an obvious winner.”
Rufo confirms Newsom’s direct role in California’s out-migration.
“There’s two stats that we came across in this reporting that I think are really important,” he says.
“Under Gavin Newsom, the state’s population has declined by 0.2%, which is the first time that California’s population has declined ever since it became a state … but at the same time that the population declined, Medicaid spending … for low-income people doubled.”
“And so you have the population going down and then the health care expenses under Medicaid doubling,” he explains, pointing out the vicious cycle of fraud money flowing to unions, which funds politicians, who expand the system even more.
The result, Rufo says, is a two-tiered society. The combination of astronomical taxes and high cost of living creates a population where residents are either “rich enough where it doesn’t really matter” or “poor enough where it doesn’t really matter because you have every part of your life subsidized.”
“I think that’s why people are saying, ‘I’m out,”’ he says.
To hear more of the conversation, watch the episode above.
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