There is a curious aspect to the illegal alien debate that has gone unnoticed for the most part…Why is the Mexican government doing nothing to stem the tide of illegals crossing the border?
Lets look at the Mexican economy:
They have had modest growth in their GDP averaging 1.8% over the past 4 years.
Inflation was average at 4.9% over the past 4 years.
Their unemployment rate has been right around 4%.
Given that the economics of the country is good and that the population is not skyrocketing (only a 1.2% increase from 2001-2005), why then are so many people illegally coming to the US and the Mexican government looking the other way?
That answer is simple if you think about it. Many of the illegals that come here to the states leave behind family in Mexico. While their reasons for coming here may all differ one thing is for sure when they get here they find work. Now don’t be fooled by the news reports of aliens making substandard wages…while this happens occasionally it is not the norm. The norm is for illegals to acquire forged or stolen identities that allow them to be employed at reputable companies. This gives them standard wages at the low end of our wage scales (i.e. near or just above minimum wage.) Then many of the illegals send back a large portion of their earnings to Mexico. This allows their family to live comfortable lives.
Why would the Mexican Government not like this arrangement? The only disadvantage I can see I that they would not receive the income tax from those individuals working in the states but would be able to capitalize on other taxes by the increase in consumption of its citizens.
Perot warned us that NAFTA would cause a “giant sucking sound” from all our money heading south of the border. While he wasn’t quite right on the reasons the end result is true!
0 comments to "Why is Mexico hemorrhaging?"
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