An Economic Crisis: A Lose Lose Situation for Everyone

In a previous post, I examined the effects of illegal immigration and the outcomes it has on the United States economy. Currently, I would like to return to this topic in light of the recent financial situation and economic crises the United States is facing. Last year alone, about 500,000 undocumented immigrants entered the country, which is less than 1.8 million from the previous year, according to the United States Census Bureau (see left). That alone, along with the fact that thousands of immigrants are returning to native countries on their own, is dwindling the population of the United States. Efren Sanchez, a twenty-two year old construction worker from Phoenix, Arizona was interviewed by KVOA News and “states that because of the economic predicament the United States is in right now, there are no jobs, no chance of becoming legal, and he sees no point in staying the United States.” With broadcasts and reports being aired on the news with such information, anti-immigration crowds like the California Coalition for Immigration Reform are having a celebrated moment in time. This is due in part because, finally, one of their fondest aspirations is becoming a reality. After years of continued growth, immigration to the United States is slowing down dramatically. In other words, our nation’s sharp economic downturn and lack of obtainable employment, coupled with the human rights crisis and enforcement only immigration policy, have made migrating to the United States a less plausible road for people to travel. The symbol of hope for a generous and fruitful America where achievement and success can be obtained through hard work and believing in the future has dimmed significantly.

Another significant factor towards the decline of immigration, whether legal or illegal, to the United States is the collapse of the housing market. This along with the rippling effects of the current credit cataclysm and volatility of the United States markets has led to the diminution in the number of low skilled jobs in the construction division and other leading sectors in which immigrants usually tend to find work in. The statistics and facts provided by the Pew Hispanic Center have led to the first reliable substantiations and evidence that fewer and fewer immigrants are entering the United States. In previous eras the United States has been viewed as one of the most popular localities for migrants, marketed as land of the free and the home of opportunities. Mexican consulates in California and Chicago also report that around four thousand more Mexican immigrants than usual have already left for Mexico because of the economic crisis in the United States. With this in mind, Global Visas, a leading immigration consultancy that facilitates visas legally for those willing to migrate to the United States, “says the latest statistics definitely show that immigrants are keeping their eye on the economy and current crisis the United States is facing, and that the quandary that America is dealing with is a fundamental factor when people are making their decisions on whether to come and live or work in the United States.”

In spite of this, the United States is not the only country suffering from the economic crisis. Mexico also braces for a monetary setback, and with the lack of money illegal immigrants send from the United States to family members in Mexico, adds to a complexity of issues dealing with this problem. Mexico’s billion dollars a day reliance on the United States economy is only part of the problem that Mexico will face. The considerable predicament Mexico’s economy will deal with are the lack of remittances sent to family members by many migrant workers who are experiencing financial difficulties, such as losing their jobs and sometimes their homes (see right). According to Agustin Escobar, of the Center for Advanced Research and Studies in Social Anthropology (CIESAS), about eight percent of underprivileged families depend almost entirely on the cash flow sent from immigrant relatives in the United States to survive, and they will find themselves in a precarious situation with the drop in remittances. To complicate the financial problem Mexico will face with the United States economic crisis, Carlos Villanueva, president of the United States-based Asociacion Mundial de Mexicanos en el Exterior (AMME) (Worldwide Association of Mexicans Abroad), there is a conviction that Mexicans will return in a magnitude of numbers to Mexico, which is something that would unquestionably impair the local employment market. The Mexican government along with Mexico’s president Felipe Calderon has taken emergency financial measures to withstand the winds of crisis from the United States.

With the devastating economic downturn in the housing market, immigrant demand is slowly starting to decline and job opportunities are leisurely drying up. Owing to the effects of the economic crisis the United States is facing, immigrants are choosing to go back home rather than wait for an economic rebound. The construction labor that makes up most of the immigrant employment opportunities in the form of home remodeling, painting, and landscaping is no longer copious due to the fact that only the few well off Americans have the necessary funds to spend on developments. Small business owners are no longer taking risks in hiring illegal immigrants as the United States government has increased the fines for employing undocumented workers. With fewer and fewer immigrant workers sending less money home Mexico’s economy is also feeling the misfortune of our nation’s current slump. On the whole, both immigrants and the United States suffer because of the economic crisis. As immigrants migrate back to their home countries, the United States population gets smaller and smaller and low skilled jobs are being abandoned. The future of America and the people who migrate to it depends on how our nation will deal with the current economic crisis and how our government will prepare so something like this will not happen again.