Wilting Wages: Money Sent Home to Mexico Declines as U.S. Economy Deteriorates
By Jennifer JanischFrom the December 12, 2008 issue | Posted in Local | Email this article
Gabriel, a middle-aged undocumented Mexican immigrant, sits shivering, hunched over on a plastic crate, his hands shoved into the pockets of his green hooded sweatshirt. He could easily be mistaken for a homeless man, waiting outside an East Harlem pizza parlor on a freezing November afternoon, hoping to score the spare change of a kindhearted stranger.
Suddenly, he jumps up from his makeshift chair and approaches a grocery cart full of flower bouquets, their hues shockingly bright in the gray rain. He has a customer, his fourth and last sale of the day. With strong brown hands, dry but clean, he trims the red rose stems, carefully wraps the flowers in green tissue paper and hands them over in exchange for eight dollars.
After ten hours of selling flowers, Gabriel will retire to the room he rents by the week with $40 in his pocket.
“The economy is really down. I’m making less than when I came to this country. It’s not enough,” Gabriel says. “I thought things were going to go well for me in this country, but I’m doing pretty badly.”
The National Bureau of Economic Research recently announced the U.S. economy entered a recession in December 2007. But Mexican immigrants have felt the ever tightening grip of financial hardship for far longer. As construction and service industry jobs dry up, they are sending less money home.
“Before, I used to send $300 or $400 every two weeks,” Gabriel says. “Now I’m sending $200 or $300 a month.”
Joanna Villacres, a teller at a money transfer office in East Harlem, says immigrants are still sending money home with the same frequency, but that the amount of each money transfer, or remittance, has gone down in recent months.
“If they sent $400 before, they’re sending $300 or $150 now,” Villacres says.
Until recently, the amount of money Mexicans in the United States sent home was soaring. But according to a report released last month by the Inter-American Development Bank, remittances are expected to fall from $24 billion in 2007 to $23 billion in 2008. Meanwhile, the U.S. Department of Homeland Security has reported declines in border crossings. And this summer, the Center for Immigration Studies estimated that the number of illegal immigrants currently in the United States had declined since August 2007 from 12.5 million to 11.2 million.
“That means trouble for Mexico,” says Fred Rosen, a senior analyst with the North American Congress on Latin America and a former economics professor. “I think there is a general recognition in Mexico … that if this becomes a really, really deep recession, or even a global depression, that Mexico is going to suffer very, very badly,”
Rosen says although remittances make up 3 percent of Mexico’s gross domestic product, a vast number of Mexican families benefit from and are heavily reliant on the cash they receive from their relatives abroad. He says the economic crisis in the United States will have tremendous ramifications for Mexican families.
“When Uncle Sam sneezes, Mexico catches a cold.”
5 Responses to “Wilting Wages: Money Sent Home to Mexico Declines as U.S. Economy Deteriorates”
December 15th, 2008 at 4:12 pm
Yes, all illegal immigrants should be removed from our great country so all of us can run to go work the fruit picking jobs that they will leave us!!! hurray!!! I can’t wait to see what happens to our economy when their labor is all gone and our economy crumbles even more! What an intelligent analysis of our economy Kathleen. I applaud you!
December 15th, 2008 at 6:25 pm
Kathleen:
You probably believe what you wrote - and that is very sad.
Most of the hispanics who reside in the United States came here because our economic policies made it difficult or impossible for them to make a living in their own countries.
Our Agribusiness corporations receive massive subsidies which allow them to undercut the prices of peasants all over the world. There is more to it than just subsidies, but that’s the explanation that does not require a degree in economics. Those people were starving to death in their own countries due to our policies.
The suposed hundreds of millions are not actually sent to Mexico. Most of what we give them is structured so that the money goes directly to a United States corporation. The US corporation then takes care of the necessary gratuities. The poor schmuck trying to grow beans or corn never sees a nickle.
December 16th, 2008 at 1:30 pm
According to your logic Kathleen, then all Americans of European ancestry should return to Europe right now because their ancestros didn’t apply for a visa with Native Americans to come to the U.S..
When does it end?
December 29th, 2008 at 1:30 am
The so called native americans can beat feet elsewhere as well.
Somehow I doubt “Aztlan ” is going to agree to either, should he/she/it be of Spanish/Mexican descent he/she/it’s no better that non-spanish settlers. According to you, as implied by your name, it will end when YOU get what YOU took from others before someone took it from you.
Apparently Christina thinks agriculture is beneath her and something only worthy of those living here illegally and being paid an to do something she is too lazy to do herself. I’m not sure what is more pathetic, your stance that only criminal brown people should pick crops because YOU don’t think food production to feed you is a worthy job, not to mention one that Americans wouldn’t do in a slow economy if desperate for money or that you think you are so much wiser.
Kathleen’s right on.



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December 12th, 2008 at 6:09 pm
The dire economic conditions in the U.S., combined with upholding and enforcing our immigration laws, begs the question of why this story is worthy of publication.
Perhaps the Mexicans who illegally reside in the U.S. should return and demand that their government allocate a portion of the hundreds of millions of dollars the U.S. sends to Mexico in the form of foreign aid and other veiled programs. It is not the responsibility of the U.S. to shelter illegal aliens or assist them in draining money from our economy so as to boost that of the corrupt Mexican government.
Those appointed/elected officials who are blatantly violating our laws and their oath of office are allowing these illegal aliens to turn the U.S. into a mirror image of the third world countries from which the illegal aliens migrated. All should be removed from our country and, in the case of eleted/appointed officials, they should promptly be removed from office and prosecuted.