Mexico’s former president Felipe Calderon recently responded to Donald Trump’s border wall proposal by stating:
…The Mexican people, we are not going to pay any single cent for such a stupid wall! And it’s going to be completely useless… (link)
Why would Calderon make such a claim at this specific moment in time? Well, here’s a report that will answer that question.
(Mexico) Remittances sent home by Mexicans working outside the country surpassed petroleum revenues in 2015 for the first time. There was a 4.75% increase in money sent from abroad, most of which comes from the U.S., to total US $24.8 billion last year, up from $23.6 billion in 2014, said the Bank of México.
The bank said it was the first time remittances had totaled more than petroleum revenues since it began tracking them in 1995. Oil revenues last year totaled $23.4 billion.
An important factor in the increase in remittances is the jobs created by economic recovery in the U.S. Some 11 million Mexicans are believed to be living in the U.S. and many work in construction. Remittances, 97% of which are sent electronically, averaged $292 last year. (link)
Yes, you read that correctly. Immigrant remittances received by Mexico have surpassed Mexico’s $23.4 billion in oil earnings. This means the government of Mexico is more dependent than ever on the earnings of maids and gardeners in the U.S. to keep itself afloat. This is the leverage Donald Trump talks about to pressure Mexico to pay for the border wall.
The topic of illegal immigration is a subject we have reviewed, researched and offered possible solutions to be considered for over four years. In Part ONE we outlined how illegal aliens achieve work in the U.S. and what would be needed to remove the incentive.
Any solution to solving the problem must first understand how the problem of illegal alien employment is supported by U.S. policy. In our opinion, removing those conflicting employment policies is something that has to be done.
We have reviewed Donald Trump’s border security and immigration proposals. Happily, he, and those who advise him, appear to be right over the target.
In addition to PART ONE “understanding illegal alien employment“, back in 2014 we shared the predictable impact of just enforcing the current U.S. laws on border entry – with the simple addition of a border wall.
Trump’s proposal carries: the border wall solution, the employment solution, the enforcement mechanisms of current law, and another angle that is strategically essential. “WESTERN UNION REMITTANCES” (Money Services Compliance):
[…] Meanwhile, Mexico continues to make billions on not only our bad trade deals but also relies heavily on the billions of dollars in remittances sent from illegal immigrants in the United States back to Mexico ($22 billion in 2013 alone)
[…] Mexico must pay for the wall and, until they do, the United States will, among other things: impound all remittance payments derived from illegal wages; [page 2, paragraph 7]
Any actual immigration proposal will have substantive impact on the root causes and not just the illegal alien individuals working around the flawed systems to the benefit of their families.
As previously mentioned if any candidate wanted to get serious about stopping illegal alien influx they would have to put forth something similar to this:
If you want to begin a mass plan to deal with illegals, start first by eliminating, or regulating, Money Transfer services to Mexico (western union etc) Watch how quickly the problem begins to self-correct.
But no-one wants to actually propose factual solutions because both sides of the political spectrum actually want illegal aliens to continue doing what they’ve always been allowed to do.
♦ *Year one – Stop open wire money transfers (use same process we used for Cuban remittances). Require U.S. Treasury compliance form (SS and DL#) attached and accompanying every electronic fund transaction outgoing to Mexico and South America.
♦ *Year two – build a 15′ double chain link fence across the entire Southern border, filled with sand between both fences just like North and South Korea use. CCTV and Drone Monitored by DHS and Border Patrol.
♦ *Year three – Put Federal DHS immigration offices, INS, (or trailers – coordinate with FEMA based on demographics) in every State DOT office. Give illegal aliens 1 year to apply for green cards.
♦ *Year Four – require every business, corporation, sole proprietorship, etc. to have an employment compliance officer (can be a title added to HR person). Every compliance officer will be required to sign an annual form verifying employment eligibility for every employee in the company. Annual social security check (card check system) – Penalty for infraction:
• $100,000 fine per employee
• 1 year jail term for company owner, board of directors, and/or compliance officer.
At the beginning of year 4 you will see less than 25% of illegals remaining in the U.S. At the beginning of year #5 you will see almost negligible amounts of illegal aliens remaining. (link)
Embargoing the Western Union remittance payment fees, or establishing a transmission fee specifically to Mexico transfers, immediately puts pressure on the Mexican government who benefit economically from inbound wire transfers.
This is NOT a new process or new procedure. Similar money services transfer laws have been in place for years with regard to Cuba. Any wired monetary transfer into Cuba required a Cuban Remittance Certificate filled out by the sender and retained by the originating financial entity. There are also strict rules on the amount of money that could be transferred to Cuba, so we already have a well established process in place to carry out such a proposal.
It only takes political will to make it happen; and the evidenced economic dependency that Mexico now has on U.S. remittances, to retain their tenuous economy, provides us the leverage we need to get them to pay for the border wall.