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Congratulations on advancing the cause of socialism. Rochester is like a guy collecting welfare and driving a Cadillac. And now he wants to get a loan to put in a swimming pool. Try and explain to him how he might benefit by giving up some of his toys.

"Iranian President Mahmoud Ahmadinejad has described the Holocaust as "a myth" and suggested that Israel be moved to Europe, the United States, Canada or Alaska."
The Proposition 65 warning is required for any product whose customary use will lead to a level of 0.5 micrograms of lead or greater entering the body of a consumer or public citizen.
Second - Lead, the metal. If you don't know what it is, or anything about it other than that it's "dangerous," you should read up a bit on it. Lead is a frankly terrifyingly dangerous metal that, in almost any quantity, does incredible nervous system damage. It was very popular in the 17 and 1800's in face makeup (anyone who indulged in these makeups was almost constantly pale, as their body went through the miseries of lead poisoning), in many (much older) water pipe systems, and most notably - paint. Human skin does not readily absorb lead in teensy quantities, but if ingested or found in large enough quantities on the skin, its danger begins.
Finally - Christmas lights almost ALWAYS contain lead in their wiring. This is because the PVC (plastic) used in their insulation needs a metal 'stabilizer' to aid in fireproofing. Lead is most commonly used (the cheapest option?) in the case of xmas-lights.
So I went to Wal-Mart, Home Depot, Lowe's, Target, and even Wegmans. At each and every store, each and every brand and type of holiday lights sold had a prop 65 warning both on the box and on the wires. By the above definition, that means that handling christmas lights in a routine fashion will subject your body to absorbtion of AT LEAST 1/2 a microgram of lead. Handle them longer, or stick your fingers in your nose or mouth after failing to wash them - or even worse having a cat or child stick them happily in their mouth... lead, lead, lead.
Various sites list 'hazard' levels of 40mcg per square foot of dust on floors, and in the body at 10mcg per deciliter of blood. So, if by handling xmas lights, the body absorbs 1 or 2 mcg of lead, it might not hurt you 'that much' - but do you really want that stuff in your system?
Of all the things in life that 'can hurt you' and 'cause cancer' - many, I'm sure, can be ignored as a bit much. But in the case of lead... wouldn't you rather elimenate ANY lead content, considering the damage to your nervous system that can be caused?
Someday, I'd love to see a different chemical choice in mixing the PVC for the wire insulation in holiday lights. However, while the companies choose to use it, consider wearing gloves (even thin latex), or at least do what the Prop 65 warnings suggest and "wash your hands promptly after handling."