"California taxpayers aren’t funding a welfare program that occasionally fails. They’re funding a system that converts their money into political power for the people who run it. As Rufo puts it: when the people with the levers of power benefit from the system, the system does not change."
Rapper Nuke Bizzle bragged about EDD fraud to face prison time
"California’s unemployment insurance program lost approximately $32 billion to fraud during COVID-19. Sacramento assigned two state employees to investigate. Chris Rufo, senior fellow at the Manhattan Institute, says that wasn’t negligence. It was a rational response to the incentive structure, because the fraud pays the people in charge.
Key Facts
• ~$32 billion was stolen from California’s EDD unemployment program during COVID-19, documented by the California State Auditor and the U.S. Department of Labor Office of Inspector General.
• Two state employees were assigned to oversee fraud statewide while EDD paid out billions in claims each week.
• Gavin Newsom has been California’s governor since January 2019, the period Rufo identifies as when the state became, in his words, “a big fat target.”
• Tennessee rapper “Nuke Bizzle” was arrested only after releasing a music video demonstrating his fraud methods in detail; federal prosecutors cited the video as evidence in court.
• Rufo identifies a money chain: fraudulent IHSS caregiver enrollments inflate union membership rolls, generating dues that flow to California Democratic campaigns.
• Enforcement is broken at every stage: most fraudsters aren’t caught, caught ones typically aren’t charged, and those convicted rarely serve meaningful time.
The Rest of the Story
How the Machine Works
"California’s In-Home Supportive Services program automatically enrolls home care workers in public sector unions. When fraud inflates IHSS caregiver headcounts, union dues increase. Those dues fund California Democrats, the same politicians who control EDD oversight.
"Rufo frames it as a direct pipeline: “taxpayers, fraud schemes, unions, politicians.” Every link in that chain has a financial interest in the pipe staying open.
The Immunity Chain
"Most EDD fraud goes unprosecuted. California’s criminal justice system, under the same political management as EDD, provides the final protection. Fraudsters who are caught aren’t charged. Those charged aren’t convicted. Those convicted don’t serve time.
"The result is a system that carries almost no risk for fraudsters. That’s not a failure of capacity. It’s a predictable outcome of who controls the enforcement mechanism." . . . More...

