Sunday, June 03, 2007

Generating Money


I heard on the news Thursday that Mexicans in this country sent $25 billion dollars to their families in Mexico last year.

And I bet other people here with their families in other countries do the same.

I would like to think I would too. That is where your first responsibility is – your family.

But as far as U.S. economics go I don’t think it is good thing. The money they are sending away is a generating money. The self-generating money would ideally get put back into the flow my buying good or services, which generate more American jobs, or maybe invested in stocks, bonds, or a form of savings, which is money to be lent for things to generate itself around.

But, when the money goes to another country: Poof! I doubt if it will find its way back to jump in the generating pool again and the economy is hurt a little bit more.

I could use that $25 billion.

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10 Comments:

Blogger kenju said...

We all could, Eddie. But think of how hard those Mexicans work in the US. They have an excellent work ethic, and they do jobs that a lot of Americans consider beneath themselves. Here in our area, 99% of lawn service companies are staffed by Mexicans, as are fast-food places and I have noticed that the service is better and faster where they work! I don't begrudge them the ability to find jobs they can't get in their country - as long as they do a good job! The downside is all the car wrecks they cause, and the prostitution rings that are set up by and for them, and the murders they commit on each other when they are drunk.

5:47 AM  
Blogger ET said...

Judy,
I was just joking when I said I could use the $25 billion. I wouldn't know what to do with it if I had it.
I think the typical or average Mexican worker in this country earns his pay and then some. So, I don't begrudge him that. And as I said, if I was in his shoes I would like to think I would do the same, send money back to the family.
However, my main point was, that I don't think the $25 billion taken out of the U.S. circulation helps the U.S. economy... the money can not generate any more jobs or whatever.

7:35 AM  
Blogger Steve said...

Its a very serious drain on our capital, and for the most part has been ignored, though in fairness the state legislature tried to pass some kind of big tax on Western Union a year or so ago.

2:29 AM  
Blogger Steve said...

and i agree with Kenju about how hard working these Mexican folks are- I teach some of their kids. They are about like any group....some are great, others not so much....

2:30 AM  
Blogger ET said...

Steve,
I agree.
The bad thing about any group, minority or majority, the worse apples represent the whole crop.

6:07 AM  
Anonymous Anna said...

The issue I see is the drain on our health care system and social security system, which they often do not pay into. I don't see why ANYONE should be able to get the benefits if they don't pay into it or at least have a link to someone that did, i.e., my Mother-in-law did get a pension w/o paying into it but her husband did. As far as the Mexicans go, if they are sending $25B back home, how do they buy these HUGE SUVs and all the frills, plus any and all other frills that are for sale today? Our economy is really catering to their every need and desire. It seems to me the fact that they don't have to pay taxes enables them to spend the big bucks. Now, I realize this is pumping back into our economy, but I'd like to buy more stuff (where would I put it?) and would be able to if I didn't have to pay high taxes, etc. Of course, as my son is so fond of telling me, I do get benefit of lower prices for food and services because they don't have higher wages that include taxes. It's a vicious cycle that doesn't seem to be equitable any way you look at it.

10:09 AM  
Blogger Suzanne said...

Sadly, the check cashing and money wiring industry makes a lot of these people, so it's not all leaving the country...

And don't get me started on the government scams perpetrated by Russian immigrants. The Communist system really taught people some hideous survival tactics that they imported here and use with amazing success. Who says communism and capitalism don't mix?

3:20 PM  
Blogger ET said...

Suzanne,
From what I have observed it appears that immigrants from all over learn very quickly the art of capitalism.

5:03 PM  
Anonymous Anonymous said...

Lots of pros and cons. Individually, you find many wonderful people. And you gotta love the kids! Their family ethic seems as strong as their work ethic. The problem is the sheer numbers and how quickly the changes can crash in on a local community and the local economy. Our small community is suddenly experiencing culture-shock in the form of major-gang activity where no gangs used to exist. When the New York Times comments that a small city in Georgia is the drug-distribution hotbed of the South, there's something screwy. I don't think that can all be blamed on the Trailer-trash-mom-and-pop-Meth Lab. There has to be some major organization behind it: gangs.

12:00 AM  
Blogger ET said...

Anonymous,
May I call you "Any" for short?
Any,
You are right. You have to admire their family and work ethics - and as you said, the numbers.... the huge numbers are shifting things to ways of life that we are not used to.
They are a big market that spend money, so there are and will be adjustments in the business world.
I just wish they would pay into the system to help pay for police, medical, and fire protection that they get.

2:55 AM  

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