Monday, August 25, 2003


Warren Buffett, the highly successful and respected investor and businessman, may now regret his decision to invest in the campaign of Arnold Schwarzenegger.

Known for his wise and frank advice, Buffett rightly commented that an increase in property taxes would be one of the measures needed to reduce California's looming budget deficits. This opinion was not in accord with Arnold's Republican anti-tax strategy and at last week's press conference he said that if Buffett mentioned property taxes again, he woould have to do 500 sit-ups.

A very funny comment, but I wonder where that leaves Buffett, who is supposed to be advising Scwarzenegger on economic matters for California. Does he back off and not give his honest advice? Does he resign because his advice is publicly dissed?

Since Buffett is reputed to be a Democrat, his role in California has always been questioned. True, everyone should be pleased to have his help for this troubled state, but the long-term consequences may be dire. If Arnold wins, California could go Republican in 2004, increasing the possiblity that the disastrous Bush administration might be returned to office.