Immigrants in the US Send Money Home in Record Numbers( $126 billion)

VOA ^ | 03 June 2005 | Zulima Palacio

[ETERNAL WARMING]

Immigrants in the US Send Money Home in Record Numbers By Zulima Palacio Washington, DC 03 June 2005

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Until a few years ago, the money that immigrants sent back home every month was only their business. But remittances around the world now total more than $126 billion, according to the World Bank. So it's become an issue for economists, governments and politicians.

[investigateworld]

From just a number crunching point of view, how does this effect U.S. inflation? Looks like chump change in a multi-trillion dollar economy, but?

[Recall]

And just yesterday I read where Bush is now giving a billion a year to the hospitals along the borders for treating illegals!

[Exton1]

That called the "Velocity" of money, or the multiplier effect. That is the number of time that money changes hands before it goes back to a bank. It averages around 5 to 7 times.However, with the illegals it drops to about 1 or 2.

[PeterPrinciple]

That's money that used to float in the US economy that no longer does.

My mind says that US dollars EVENTUALLY have to be spent here.......it is just a matter of time. Maybe I am looking at this too simply but I am willing to be convinced otherwise.

[sefarkas]

How do you figure $126B is a big number in an $11 trillion dollar economy? If ~1% is a big number to anyone else here, can I interest you in a few bridges?

[sefarkas]

Question: Would that $126 billion a year save Social Security? (sarcasm)

Sarcasm or not, how ridiculous? Unless you are suggesting that these folks stole the money they send to their families .... If they earned it, it is theirs to do with as they please. Your post was as a confiscating communist would have wrote it. If you are truly concerned about money going overseas, I suggest you start sewing your own clothes and cobbling your own shoes for starters.

[sefarkas]

I'm a mason contractor and they have pulled the wage scale down 2 fold,,and the my bid scale,,,

As those same construction workers you chide have to live here, eat here, etc. -- and probably lack a Star-Trek transporter system -- How is it that they can afford to live on the low wages that you protest? How is it they can afford to live here, work here, eat here, send part of that measly wage out-of-country and you can't?

[sefarkas]

That called the "Velocity" of money, or the multiplier effect. That is the number of time that money changes hands before it goes back to a bank. It averages around 5 to 7 times.However, with the illegals it drops to about 1 or 2.

In graduate economics classes you learn the technical definition of 'velocity of money' which is one of the terms in MV=PY. The advantage of the monetary policy & monetary theory courses at the graduate level is they finally get around to explaining where those equations come from. They are derived from statistical studies of economic data.

It is highly improbable that a peer-reviewed article would ever attempt to claim that the money in the economy is aware of the person using it in commerce.

[Texas_Jarhead]

"How do you figure $126B is a big number in an $11 trillion dollar economy? If ~1% is a big number to anyone else here, can I interest you in a few bridges?"

$126B will almost run the state of Texas for two years but you're right it's chicken scratch. BTW, what is the annual US budget for foreign aid?

[investigateworld]

"How can they afford...?"
Simple 6 guys to a bedroom, free health insurance, hit the food banks, cash under the table jobs, Goodwill clothing. Find a fat gringa, food stamps and free rent follows. I could go on all day!

[sefarkas]

"How can they afford...?" Simple 6 guys to a bedroom, free health insurance, hit the food banks, cash under the table jobs, Goodwill clothing. Find a fat gringa, food stamps and free rent follows. I could go on all day!

How are these options only open to certain folks? Clearly, it is possible to live in this country on the wages paid to them -- they're willing to make the sacrifices. If others are not willing, then may the best man win. Otherwise, are you suggesting the government step in and allocate jobs in some sorta lottery? Not in my America!

[monkeywrench]

"How is it they can afford to live here, work here, eat here, send part of that measly wage out-of-country "

They live 12 to a room, buy bulk/cheap items--with no variety, and declare 9 dependents.

[spectre]

"You are an Idiot...Im a mason contractor and they have pulled the wage scale down 2 fold,,and the my bid scale,,,so what happens??...they get 10 times what People make here in america by sending there money home,,,what is the money rates?...take a look...so when they only malke 5 here in america they make 10 times that when they send it home...50 bucks an hour...so they dont care what jo they have...understand?/.. so they dont care about our wage or bid scale...they want your job ,,,at any price..."

I am so sorry to read this. And I'll just bet that you are a much better mason contractor than the Illegals pretend to be. People should realize they always get what they pay for.

Just damn.

[Pride in the USA]

"If they earned it, it is theirs to do with as they please."

Exactly . . . you did understand my sarcasm.

Likewise, the rich should not be penalized and made to save Social Security (as many have suggested) just because they are rich.

"If the wealthy paid 12.4% payroll taxes on all their income but kept their current benefits, Social Security's deficit immediately would become a projected $540 million surplus, the Social Security Administration estimates."

I, for one, do not want to support the illegals through higher health care or education costs, or those legal citizens who abuse the system by taking all they can get, demanding more, but who contribute nothing.

[sefarkas]

much better mason contractor How is being a "mason contractor" the exclusive skill of someone whose parents happened to be on American soil when they were born? You always get what you pay for, and clearly we were paying too much before. There are clearly people who are willing to sacrifice much to build our economy (and have a little left over to send back home to their families)? I can't remember the last time I sent my folks a little cash.

[the anti-liberal]

Why are you advocating illegal immigration?

[investigateworld]

I forgot my standard "If I was born in a third world cesspool, I too...."
And I truly mean it. May I suggest you visit a National Forest in Northern Cali, or even here in Oregon ?. Stop in at any Ranger Station and ask them "where is it safe to hike?"
Even those gov't eunuch drones, trapped in a PC world will advise you to stay out of certain areas, particularly those with surface water.
But their just growing the weed Americans won't grow!

[sefarkas]

Why are you advocating illegal immigration?

Why are you advocating that the government confiscate money earned working construction depending on an accident of where your parents were when you were born? This thread started with a complaint about a $126B (~1% of an $11 trillion economy) being sent back to family which has nothing to do with "illegal immigration." Some of the other posters inferred that all this money (and all immigrants) are criminals.

Starting myself, my parents, my aunt and uncle and an endless list -- we are all legal immigrants (and now U.S. citizens). I've lived in the U.S. since age 5 (arriving in 1963 -- you do the math). My father, uncle and I are well respected engineers in our fields who have max'd out the FICA withholding for years and years.

I deeply resent the anti-immigrant tone of many of the posts here that are fed by ignorant MSM coverage of only the worst aspects of American society.

[B4Ranch]

>>This thread started with a complaint about a $126B (~1% of an $11 trillion economy)<<

Each dollar in the US economy normally travels in your community and is taxed 7 times during its travels. The loss of these taxes affect your immediate community far greater than they do the national economy. However you will be requested or required to make up the differences should you wish to maintain the levels of society that you currently have.

[spectre]

I never said that it should be limited to masons whose parents were born on American soil. Twisted logic on your part.

I do mean to suggest that Illegals who aren't nearly as skilled or qualified as our own citizens are working construction.

I've seen some of the shabby brick work on new homes around here, and it's pathetically substandard, and it's hard to miss who is doing it as well. They aren't your typical Arkansans who used to work construction. So what part of "you get what you pay for" don't you understand?

I'll be go to hell, if I'll employ even one illegal to do any work in or around my home. Thank goodness there are more people who are thinking like me.. than you. If we don't hire them, they won't come.