It does though. Jose will spend it on a car that Joe can't afford. Jose will by more tequila that Joe can't afford. Clearly Jose's money will go back into both economies: Black market and real. Joe, unfortunately, has been compromised into subsidizing the man who is doing everything illegal.
Right but my point is that the government stealing from Joe to give to Jose does not have any net benefit on the US economy; if anything it is a loss in favor of Jose’s home country
Your post and defense of Jose make a case for a fair tax or national sales tax. Even drug dealers spend money, even ILLEGALS spend money.