Illegal Aliens, Mexico and Money

The quiet of a sweet night’s sleep was suddenly broken by the sounds of screeching metal, sirens, shouts and the crash of a fast moving truck roaring through the gates of our park in the Rio Grande Valley of Texas.  In that instant, a world that existed in news reports, jokes and political commentary became our world.  A world made up of pounding feet, panicked cries in foreign tongues, and the uncertainty of who would fire the first shot.   That night illegal immigration became a threat, not an issue. 

We live in a gated community along a major highway running from the Mexican border through McAllen, Texas toward San Antonio.  A truck carrying 20 illegal aliens left a staging area on an isolated ranch located not five miles from where we live.  The aliens in that truck were from Mexico and Central America, mostly Guatemala.    Immigration intercepted the truck near the small town of Falfurrias on US Highway 281.  The driver refused to stop.  He turned around and led a high speed chase back toward the border. 

The chase, exceeding 90 miles per hour, came to a halt when the driver missed a turn and sent the pick-up careening into the gate at our main entrance.  The gate jammed half way, blocking all entrance to vehicles in or out.  The men and women on board jumped or were thrown from the truck.  They ran into the resort as a host of chase vehicles pulled up behind them, lights and sirens ablaze.  Most of the men ran straight down our central street, knocking down and scrambling over the fence at the far end.  Some tried to hide and other simply gave themselves up to the authorities.  Thankfully, no guns were brandished by the authorities, the illegals or the residents of our community.

  Illegal immigration is a serious threat to this country.  One of the definitions of a nation is its ability to establish, defend and control its territorial boundaries.  Nor can we ignore the fact that the largest number of these people are coming from or through Mexico.  While I do know that many other countries produce both immigrants and illegal aliens, I’m talking volume here, and Mexico is the biggest producer of both.  If x + y = z, you can’t call the mathematician a racist. 

Some want to characterize all illegal aliens as honest, hard-working people who simply want to, “live the American dream.”  Others speak of the gang members, drug runners and people from hostile nations who have been apprehended.  Both sides are using emotions as a substitute for logic.  They ignore the fact that anecdotes are not data and generalizations are designed to obscure, not reveal.   

Let’s look at just one aspect of this problem--remittances.  Money earned in the United States by Mexican workers is sent back to Mexico to the tune of over $20 billion a year!  That is money which is no longer in circulation in this country.  That same money, moving around the United States from person to person in ordinary commerce would generate around $45 billion in goods and services.  Instead it is going to Mexico.  It also represents 20 billion reasons for Mexico not to worry about solving this problem.   Since Mexico has no reason to solve this problem, I suggest a modest solution myself.  I believe that these remittances should be taxed at the fluctuating rate of M1 velocity.  They do, after all, represent money that is being removed from the United States economy.  I also believe that people sending these remittances should be required to show either a valid green card or proof of citizenship.  

Behind the drama of illegal immigration are scenes of less glossy but equally serious economics.  This is a domestic problem, and an international problem, and it must be solved.   

Protect the borders to keep the faith.