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Mexico’s Coming Collapse
The National Anxiety Center ^ | June 2005 | By Alan Caruba

Posted on 12/29/2005 5:42:21 AM PST by Nasty McPhilthy

I received an email recently from a 55-year-old, unemployed American who had been to 14 States looking for work. He couldn’t find any, he said, because "I am not a Mexican."

Despite a desire to work, he could not compete with the cheap wages Mexican illegals will take. They do so because wages in Mexico continue to leave a vast portion of that nation’s population in poverty, forced to live on $3 to $4 dollars per person a day.

According to data from the CIA, 40% of the Mexican population lives below the poverty line. The current population is estimated to be 106,202,900 people and the labor force is estimated to be 34.73 million. Despite being rich in natural resources, the Mexican economy is highly dependent on the US economy. We buy 84% of all Mexican exports, compared to Canada that buys a mere 1.8%. "Per capita income is one-fourth that of the US; income distribution remains highly unequal." That’s a diplomatic way of saying a handful of Mexican elites own most of everything.

There are a lot of reasons advanced to explain why the Bush administration will do nothing to stop the flow of illegals across our southern border, the vast bulk of whom are Mexicans, but the one I had not heard until I received the email was that Mexico would collapse without the money sent back by the Mexicans, legal and illegal, among us. When you look at the economic data, it is the one explanation that begins to make sense.

Ignoring the financial and social impact that millions of illegal Mexican workers are having on America may well be the US government’s way of avoiding a tsunami of even more Mexicans crossing over in the wake of an economic disaster, the collapse of the Mexican economy.

The most dramatic change that the 1994 North American Free Trade Agreement has had is the way it has emptied out whole sections of Mexico as its former citizens head north. People don’t do this because they have a choice. Mexico is not creating new jobs. It is, instead, sending its people here to take over all kinds of jobs that unemployed Americans no longer can get.

The World Bank confirms the CIA data that nearly half of the Mexican population is just as poor today as they were in the 1960s. That’s not slow growth. That’s no growth.

According to Bloomberg.com, "Mexico’s economy grew at the slowest pace in a year in the first quarter as US demand for the nation’s autos, textiles, and appliances declined."

Surpassing oil and tourism, the estimated $20 billion in US dollars that Mexicans sent home last year is the mainstay of Mexico’s economy. When your main export is your citizens, your nation is in big trouble.

Moreover, Mexico has found a new competitor when it comes to exports. China has surpassed our southern neighbor as the top supplier to the US of a vast array of assembled goods, as well as textiles, office computers, metal parts, and prefabricated construction parts.

Mexico’s problems have become America’s problems despite all the hoopla about NAFTA. The failure to stem illegal immigration and all the problems that go with it will become a major political issue in the 2006 elections and beyond. It simply cannot be ignored, though the Bush administration is doing its best to do just that.

My correspondent is probably just one of thousands of able-bodied Americans who cannot get work because illegal Mexicans will take any job available, but even worse news for Americans is the growing trend of out-sourcing white-collar jobs. Though it is hard to determine due to reporting procedures, there is no debate regarding the loss of hundreds of thousands of jobs that will leave many Americans unemployed in the years directly ahead as their jobs migrate to India, China and other nations.

So while the potential of economic collapse of Mexico looms to the south of us, internally jobs are disappearing into cybersphere as workers in developing nations, receiving far less than American workers, are the beneficiaries of the way technology speeds aspects of globalization. Here again, the US government is taking no steps to address this looming crisis. If the US economy begins to falter, Mexico’s will tank.

Is anyone paying any attention to this? Well, I am and so is my out-of-work correspondent. Maybe you should, too?

Alan Caruba writes a weekly column, "Warning Signs", posted on the Internet site of The National Anxiety Center, www.anxietycenter.com.


TOPICS: Foreign Affairs; Government; Mexico
KEYWORDS: aliens; bombthemtodust; caruba; immigrantlist; immigration
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To: grayforkbeard

Good post.


141 posted on 12/29/2005 8:20:32 PM PST by Jigsaw John
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To: TexasCajun

Gotta disagree with you, at least in part.
First: 5% unemployment rate. Who says? What is their criteria? That particular statistic can be manipulated to give almost any answer and politicians and bureacrats are adept at doing just that.
Second: At 55 years old a prospective employee is also a prospective liability. He (or she) is at an age where illness and injury are more common than for those who are younger and stronger. Many companies will tell such a person that he is just "too qualified" for the position. That's to make him feel better about being unemployed. Believe me, it doesn't work. At least, it didn't work in my case.


142 posted on 12/29/2005 8:23:15 PM PST by oldfart ("All governments and all civilizations fall... eventually. Our government is not immune.)
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To: dsc

You are "no longer part of the workforce" if your unemployment benefit runs out and you haven't found a new job. You disappear from the Earth as far as the unemployment numbers are concerned.


143 posted on 12/29/2005 8:41:41 PM PST by Pelham
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To: SteveJudd

Well said!


144 posted on 12/29/2005 8:46:57 PM PST by Pelham
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To: Pelham

So, the actual unemployment rate could be, what? 10%? 15%?


145 posted on 12/29/2005 8:59:32 PM PST by dsc (Islamic sexual violence against women should be treated as the repressive epidemic it is.)
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To: Lazamataz
That's because everyone in Mexico will have finally moved to America

"Will the last person to leave Mexico please blow out the candle?"
146 posted on 12/29/2005 9:10:27 PM PST by motzman (God helps those who help themselves - B. Franklin)
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To: Political Junkie Too; dsc
Again, I can only recommend that you spend some time in Mexico. You will meet many fine Individuals, but overall, you'll come to understand why the rest of us (and all) others are leery of allowing unbridled imports from there.
147 posted on 12/30/2005 12:00:39 AM PST by investigateworld (Abortion stops a beating heart)
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To: Nasty McPhilthy
The Mexican border factories known as "maquiladoras" that were so important in the 1992 presidential election have tanked.


148 posted on 12/30/2005 12:05:21 AM PST by Straight Vermonter (John 6: 31-69)
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To: Red Badger

Be nice. We're not all raving lefties.


149 posted on 12/30/2005 12:07:37 AM PST by Straight Vermonter (John 6: 31-69)
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To: Fruitbat

Sucks, huh?


150 posted on 12/30/2005 3:24:01 AM PST by Nasty McPhilthy (Those who beat their swords into plow shears….will plow for those who don’t.)
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To: Fruitbat

Sucks, huh?


151 posted on 12/30/2005 3:24:53 AM PST by Nasty McPhilthy (Those who beat their swords into plow shears….will plow for those who don’t.)
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To: RightWhale
40% of the Mexican population lives below the poverty line

That's because 60% of the Mexican population lives here.........

152 posted on 12/30/2005 5:48:40 AM PST by Red Badger (And he will be a wild man; his hand will be against every man, and every man's hand against him)
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To: beaelysium

My daughter is helping to pay her way through college by waitressing at a nice place in Bethel Connecticut. She used to get her tips in cash, but with a new owner tips are handled differently now. All credit card payments are put through the books. Cash tips are rounded up and used to pay the illegals in cash, while the difference do to my daughter and her fellow servers are paid to them in their paychecks, which are fully taxed, unlike the cash which is not taxed at that point.


153 posted on 05/13/2006 11:00:34 AM PDT by antonia ("Democracy is the worst type of government, excepting all others." ~ Churchill)
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