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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: Red Badger

South of the Border, of course... I wouldnt tolerate anyone speaking badly about Dixie..


81 posted on 12/29/2005 8:59:43 AM PST by ßuddaßudd (7 days - 7 ways "Guero")
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To: ßuddaßudd

Even if it was about Dixie, it wouldn't have been bad. The future looks a lot brighter if the present state of affairs across the whole country was more like Dixie...........Except around NOLA.......


82 posted on 12/29/2005 9:05:23 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: Nasty McPhilthy
Mexico's problem is pure socialism.

They have tons of natural resources, an excellent climate, and hardworking people. Legalize drugs, let the people arm themselves (which would drive out the corrupt police) and get the government out of the way and let the free market work its magic. It's the tried and true method for success. Always have been.

83 posted on 12/29/2005 9:11:25 AM PST by Extremely Extreme Extremist (None genuine without my signature)
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To: Nasty McPhilthy
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.

More precisely, Mexico HAS collapsed, as far as the common person there is concerned. What the Mexican government is worried about is that Mexico needs the influx of money in order to keep their corrupt elite living an elite lifestyle

84 posted on 12/29/2005 9:19:34 AM PST by SauronOfMordor (A planned society is most appealing to those with the hubris to think they will be the planners)
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To: norton

"It has also cut off things like basic construction, many types of repair, and clerking, which were mainstays of the non-college educated wage earner."

Exactly!


85 posted on 12/29/2005 9:20:58 AM PST by stephenjohnbanker (Merry Christmas and happy new year to all our troops at home and abroad!!)
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To: son of caesar

Mexicans love a dream of Mexico, not the reality. But they'd defend their coiuntry's independence to death, just not the US's right to independence.


86 posted on 12/29/2005 9:27:35 AM PST by hershey
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To: son of caesar

Well, Mexican bureaucrats are already saying publicly they're 'integrating' with the US. And they're quite gleeful about it.


87 posted on 12/29/2005 9:29:04 AM PST by hershey
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To: Restorer
"You are absolutely correct. American workers have been complaining of these exact same things since at least the 1830s."

DAMN those Irish!

It's not quite the same, in the 1830's we had a continent to expand into, today we are looking at being compressed into maybe 60% of that same continent.
Also, apart from some embarrassing moments during the mexican-American shoot ups, the Irish, Italians, Germans, etc. came here to become part of the nation and not to haul their old one into my backyard.

88 posted on 12/29/2005 9:30:09 AM PST by norton (someone help me, is it et al, et ala, et ali, or should I just forget it?)
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To: smith288
...but not the only one...

89 posted on 12/29/2005 9:32:39 AM PST by Bon mots
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To: norton

No arguments.


90 posted on 12/29/2005 9:37:04 AM PST by Restorer
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To: norton
Yesterday,I had an interesting chat with a lady who drives a 'roach coach'*.
She told me she can't stop at construction sites that are using illegals as they are not allowed the legally required breaks. In Oregon, that's 15 minutes every two hours. May not mean much to an office worker, but when you're busting your hump in construction, it's needed.


*Mobile food and beverage service.
91 posted on 12/29/2005 9:49:03 AM PST by investigateworld (Abortion stops a beating heart)
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To: Lazamataz
That's because everyone in Mexico will have finally moved to America

When that happens I'm going to go snatch the Palacio Nacional and turn it into a Bed and Breakfast. Or maybe a cathouse. You can come down and do quality control.

92 posted on 12/29/2005 9:55:50 AM PST by MARTIAL MONK
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Comment #93 Removed by Moderator

To: seastay
Capitalism has a limit, and stops at slavery. Also, capitalism cannot exist without law and order. Our politicians are selling out capitalism and democracy by allowing this modern day slavery to creep back into our society against the will of the majority of the populace, by taking support from special interest modern day plantation owners, thus refusing to enforce existing labor laws and visa laws which have been established for the protection of capitalism.

The problem with Mexico is that it is an oligarchy being run for the benefit of its elite. The only way to make Mexico viable is to introduce real capitalism, by eliminating the regulatory barriers which impede non-elite Mexicans from starting their own businesses in competition with established elite-owned businesses.

Of course, the elite will fight to the death to oppose this, because it will make them no longer "elite"

94 posted on 12/29/2005 11:18:12 AM PST by SauronOfMordor (A planned society is most appealing to those with the hubris to think they will be the planners)
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To: tiki
My first thought was; if he was unemployed how did he get to 14 states.

heh...in his Mercedes:)

95 posted on 12/29/2005 1:42:55 PM PST by evad
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To: hinckley buzzard
Yes. In retrospect I'm convinced it's just Too Damn Hot down there and this is the main reason Manifest Destiny didn't take it over in the first place. As a result the region was left to the devices of the corrupt and incompetent.

Bush's Fault.

96 posted on 12/29/2005 1:49:06 PM PST by evad
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To: Little Ray
Annexing Mexico would be a VERY bad thing.

I agree - it is not just the politicians who are corrupt, it is the population in general.

97 posted on 12/29/2005 1:57:04 PM PST by Pa' fuera (I support family reunification.......through deportation)
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To: Red Badger
40% of the Mexican population lives below the poverty line

Typical third-world stats. Mexico is the tenth richest country, but 40% of its wealth is unavailable as capital because it is in shantytowns.

98 posted on 12/29/2005 1:59:11 PM PST by RightWhale (pas de lieu, Rhone que nous)
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To: kjam22
Jessie Jackson was the one who said we couldn't expect young blacks to work for McDonalds and earn minimum wage when they can sell drugs and make $$$$$$.

so Jessie gave up the big bucks for the opportunity to spit on whitey's burger before he served it to him - indeed he is a man of principle (/sarcasm)

99 posted on 12/29/2005 2:00:43 PM PST by Pa' fuera (I support family reunification.......through deportation)
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To: Little Ray

I'd annex Cuba before Mexico.


100 posted on 12/29/2005 2:02:38 PM PST by Harrius Magnus (Joseph P. Kennedy thought that involuntarily lobotomizing a 23-year-old was good parenting technique)
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