WASHINGTON, July 28, 2014 — There are many interesting views on illegal immigrants from Mexico and other Latin American countries to the US. Jill Bossi a candidate from South Carolina for the America First party for the US Senate says in her blog, “the US needs to work with the Mexican, Central and South American governments from which these illegal immigrants are coming from to help them resolve the economic and humanitarian issues that are causing their people to leave and head for our borders.”
The problem is that this has already been done, and in Mexico’s case, it is a statistical success. Mexico is considered a middle income country by average income, it has a GDP per capita level of around $11 000, and at gross levels, Mexico is the 14th largest economy in the world. The unemployment level in Mexico is only 4.5%.
Given these statistics, why would so many Mexicans want to risk everything to migrate illegally to the United States?
Obviously, statistics are not telling the full picture.
Mussolini told the world that fascism is the cooperation of government and business, and that very concept is what is causing the problems in Mexico. With equality before the law, you cannot have fascism. With fascism, a culture of entitlement is born as government and business are intertwined. Advisors from Washington have long sent advisors and aid to help business friendly Mexico. Business friendly is not the same freedom friendly.
Anthony Bourdain showed us a glimpse of the culture of entitlement in Mexico on his television show.
In an episode on Mexico, Anthony goes to a fancy Mexico City restaurant. The daughter of a high official came in, demanding a seat, but the restaurant was full. She responded angrily, vowing to shut the place down.
The next day health and safety official came to the restaurant to shut it down. However, because the restaurant is popular, customers took photos and videos embarrassing the corrupt.
Imagine how the rest of the economy is managed by the government.
When business is intertwined with government, you end up with someone like Carlos Slim holding 70% of the market share in the mobile phone market and 80% of the fixed line market, not by great business skill but as a gift for having money.
Telmex was sold to Slim and his partners as a monopoly back in 1990 at the beginning of the telecommunications boom. Privatization was the big message from Washington back in 1990, not fairness.
As long as you were privatizing, that was good enough.
If telecom in Mexico had been privatized properly, Slim might be worth only half his $80 billion net worth. The other $40 billion would be shared by 9 others, at $4.5 billion each. Because of competition, more people would be hired as the economies of scale are less, meaning more people to buy houses, cars, the multiplier effect will also help the elite grow their wealth. This would allow the entire society to benefit.
Trying to add competition now is nearly impossible; the economies of scale are too large, government should never have sold a monopoly back in 1990.
The overbearing hand of the government means that Mexico has the worst Gini coefficient of any OECD country besides Chile. You cannot have a heavy government hand in the economy and low taxes; who is going to distribute the income?
It is better for people do it through free markets, the prize for government protection must be higher taxes to distribute the income. You are immoral if you expect government protection and low taxes. Low taxes belong in free markets not in a fascist world.
Young people know they have no chance in a rigid fascist system that pretends it is a free market by talking business. Business friendly is not market friendly; there are many players in the market not just businesses.
As bad as things are in America, Mexicans with no connections or hope of ever being anything but a slave to the establishment believe there is more opportunity in the USA, yet a Mexico with a GDP per capita of $11,000 should offer far more opportunities than the USA if there was a free market
Washington has been giving advice to Latin America for a long time, many times at gun point. Unfortunately, much of this advice has been poor. The end result is the steady increase in illegal immigrants from Mexico.
Mexico somehow has to find the means to get money circulating in the lower income stratas, not only the Mexican elites. Providing this opportunity will stem the flow of people out of Mexico, and one day it might even attract immigrants into Mexico.
Illegal immigration in the case of Mexico to US is just a result of greed that becomes policy when governments and business get too close. It is people moving away from fascism to what they believe is hope to just have an economic opportunity.