In the short term, Mexico benefits heavily from the remittances sent from illegal aliens who work in the US. It’s a win-win situation for Mexico because of the wealth of hard currency coming into the country and the reduced need for the government to build and improve roads, schools and jails. However, in the long term it shows the fundamental problems of the Mexican economy.
Like most third-world nations, there is a large underclass, a significant and powerful upper class, and a nearly non-existent middle class. While the
Mexican middle class is slowly expanding, it will only do so at a snail’s pace when the nation exports its poor instead of improving them.
How does a nation do this? By seriously rooting out government corruption, investing in solid infrastructure improvements (roads and schools) and making the economy more business friendly. Businesses, not governments, are responsible for creating jobs in capitalist economies. Yet most firms are reluctant to expand in a nation that is rife with corruption and a decaying infrastructure. Why would any firm want to set up retail outlets or transport its goods if the threat of extortion by government officials or robbery by groups of bandits is a serious concern?
One goal should be efficiently tapping Mexico’s wealth of oil reserves by deregulating and disbanding the government-run oil company PEMEX. This is just another one of the countless examples of why privately owned, profit-driven entities are far more efficient and effective than socialized, government-run bureaucracies.
How Illegal Immigration Hurts the Mexican Economy
For all of those who are soooo proud of Mexico, here's your chance to prove it by going home and fighting for your civil and human rights, demand jobs, demand that the oligarchies pay for your social programs and that you stop being pimped out to America's corporate elite in order to prop up the economy with remittances.
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