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February 16, 2010
Mexican economy hard hit by drop in U.S. remittances

Mexicans abroad are sending less money home to their families as a result of the global financial downturn and rising unemployment levels.

These remittances are the country’s second largest source of foreign currency — after oil sales- – and their rapid decline has hit the Mexican economy particularly hard.

Remittances dropped 16 percent in 2009, and it is Mexico’s poor who are most affected by the slowdown.

For more, Daljit Dhaliwal interviews Rodolfo de la Garza, a professor at Columbia University and expert on Mexican immigration issues.

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Comments

11 comments

#11

I disagree with Karl, never forget that US taxpayers don´t finance anything, mexicans workers work very hard for very unfair wages.
They do the jobs american don´t want to do it and in most cases they pay their taxes so I think they contribute a lot to the US economy.
I think I don´t have to remind you that Britain became a rich contry not because they worked a lot, they did it because they were a pirates and had colonies.
Sorry Kerry but I´m part of the 16% of the mexican work force who still reside in Mexico and I can tell you that my standard of living as an architect here is much better than most of the americans have in the US.

#10

America is ready to get rid of its illegal alien workers. It is time we captured and returned them back to their countries of origin. The US labor problem would then right itself when 30 million illegals are kicked out of the country. It is a huge lie that they take up jobs Americans don’t want. They take up millions of high paying construction and manufacturing jobs and every other kind of job. Finally the American worker will be back in the black with a real prospect for job improvements.

#9

Believe me when I tell you that America is ready to get rid of all its illegal alien workers. It is time we captured and returned them back to their countries of origin. The US labor problem would then right itself when 30 million illegals are kicked out of the country. It is a huge lie that they take up jobs Americans don’t want. They take up millions of high paying construction and manufacturing jobs and every other kind of job. Finally the American worker will be back in the black with a real prospect for job improvements.

#8

Regarding illegal immigration, it is a myth that unemployment in Mexico causes it. A Pew Hispanic Center study found that something like 95% of illegal workers left a paying job in Mexico. The driver behind the migration is wage differential. A Mexican worker can make in the US in a week what he/she can make in a month in Mexico. That wage differential in turn is caused by complex labor supply and demand curves and productivity differentials.
The simple mind thinks that people migrate from Mexico because there are no jobs there. The truly primitive mind thinks people migrate from Mexico because of “overpopulation”, not knowing that Mexico’s birth rate is barely above the one in the US.
As to “primitive” Mexico, Mexico’s one of the largest economies in the world, with a GDP/capita of $14,000 USD per year, and a high Human Development Index. Mexico’s economy is by all measures better than the typical media darlings China, India and Brazil.
Look it up. Educate yourselves.

#7

Remittances are NOT the country’s second largest source of foreign currency. It is the distant THIRD source of foreign currency, after manufacturing exports. And the reason why Mexico is in recession is because 80% of its exports go to the US, which is in a mini-depression.
Regarding remittances, they only make 2% of Mexico’s GDP. As a comparison, the country’s domestic textile industry, which is not that important, is TWICE as big.

#6

Good Points Mr. Watson, there is one point would like to make. Mexicans have one common trait, a good work ethic– they work and work hard.
I would prefer that Mexico be treated to the same jobs as Mr Obama and the traitors in Congress are sending to China, at least Mexicans are loyal to American products, they buy American trucks, cars, ect. Unlike many Americans who never worked a real day in their whole lives and are not loyal to America.

#5

Undoubtedly the U.S. recession has caused economic woes not only in Mexico but also across the world. It is astonishing that so many can claim blame to Mexican citizens that have crossed our borders to seek opportunities, when it is our own government that has refused to make appropriate & immediate immigration reform.

The increase of illegal immigration to the U.S. has taken place to feed our nations capitalistic ideology. Unlike U.S. citizens, the undocumented are just as taxed as anyone else, however they are never provided a refund on the taxes they have contributed to the state or federally. Furthermore, Latinos in general, a majority of those being Mexican living in the U.S. contributed billions of dollars to the economy. This is money being made and spent in the United States and not abroad. Although remittance does occur, it is a drop in the bucket compared to the monies spent in the United States economy.

China and India lead in countries that have receive the majority of work being outsourced by United States businesses, not Mexico. Nor is the United States solely responsible for outsourcing production that could have otherwise been housed in the U.S.

Japan, Korea, and China quite often utilize the overworked, and under payed Mexican workers to avoid paying for retirement, benefits, and all the privileges U.S. workers get and quite often take for granted.

Unfortunately, this is a repeated pattern of larger, wealthier countries taking advantage of the economically disadvantaged countries that have unstable governments, and can not rely on their nations political process to product them from such predatory acts.

Before we criticize the Mexican worker, lets look at the larger picture instead being blinded by ignorance and bigotry. I believe the term “wetback” is a little bit outdated. If you’re going to have a convicted heart for your cause, may I advise you to do so with intelligence, and most importantly grace. Which none of the comments posted above can claim has either or.

#4

Isn’t that charitable of the American taxpayers to finance primitive Mexico. Why can’t Mexico provide jobs for its citizens? Because Mexico, unlike America or Canada was settled by lazy and corrupt southern European Spaniards vs. nothern European English and Germans for America and Canada!If America continues to permit these wet-backs from migrsating to the U.S. America will soon end up like another backwater Mexico. Then where will we all go to find a job?

#3

I notice that WF picked as safe “as you see it” article to comment on about the Taliban, a purely “means nothing” subject, and stayed well away from this one. I guess WF is now as politically correct as ABC, CBS, and NBC. What a shame. As for the Mexicans, the US government must have an under the table deal with Mexico, to let these illegals come and go as they please. And no jobs in Mexico??? 90% of US manufacturing has moved to India, China and Mexico. What, they can’t get a job making Hersey Candy, something that I refuse to buy anymore.

#2

What would I say if it were allowed. Like, could the immigrants afford to send money home, if they were required to pay taxes and the amount of taxes that all U.S. citizens must pay?

#1

Perhaps the remaining 16% of the Mexican work force who still reside in Mexico can immigrate to and work in the US to solve this problem.

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