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Tuesday, July 12, 2011

One Way Investing in Mexico Affects the U.S.

For those that believe that undocumented immigration from Mexico to the U.S. is a problem, there is a very good way to calm the appetite for the American dream: invest in Mexico.

"No one wants to hear it, but the flow has already stopped," Douglas Massey of Princeton told the New York Times in regard to the amount of illegal immigration from Mexico to the U.S. He continued, "For the first time in 60 years, the net traffic has gone to zero and is probably a little bit negative." The primary reasons: The Mexican birth rate has fallen to about two children per woman from nearly seven in 1970; Mexico's education system and economy have improved to a point more young people choose to stay (per family income is up 45 percent this decade); and drug violence along Mexico's border is likely deterring those who do think of crossing. It seems that stepped-up border enforcement and Arizona SB1070-type laws have little to do with the decline [...]."

Basically, Mexicans that emigrate to the U.S. are searching for a better life and more opportunities. Most simply want to be a part of a middle class and are willing to leave their country behind to find it. Foreign investments in Mexico have made a huge improvement in the general economy, spurring job growth and amplifying stock and trade numbers.

If you think that this is a problem for the U.S., one of the things that can really improve the issue is investing in Mexico in order to improve the economy and further resolve unemployment rates and urge to relocate to the U.S.

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