Six months ago every talking head on TV and print media was decrying the Trump proposal to build a border wall as impossible hyperbole. It is amazing just how far the conversation has turned.
Yesterday CNN ran a segment on how the border wall would possibly be constructed, what materials would be used, and how much it would potentially cost.
However, what CNN apparently missed was a December explanation where candidate Donald Trump actually explained exactly what products would be used to build the Southern Border Wall.
Beyond the now admitted viability of the construction itself, we find even more reason to be very optimistic that Mexico would pay for the wall.
In a recent Mexican news article it was revealed that money transfers (remittances) from the U.S. to Mexico now surpass the amount of the entire Mexican oil business. Wired money transfers total almost $25 Billion:
Mexico – […] 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. (read more)
Even if President Donald Trump does not renegotiate any of the $50 Billion trade imbalance we have with Mexico; and if you only target the remittance dollars ($25 billion) which are vital for the Mexican economy, you can see how easy it would be to get Mexico to pay for the border wall.
Federal Budgets are fixed on ten year projections. In order for an expenditure to be revenue neutral the revenue must meet or exceed the expenditure over a 10-year period.
If you take the $25 Billion in outbound remittances, and you apply a small 4% surcharge for each wire transfer to Mexico, that surcharge would net $1 Billion/year. Multiplied over ten years (budget requirement) that means $10 Billion into the U.S. treasury from the surcharge fee.
$10 Billion in revenue.
How much is the projected cost of the border wall per CNN?