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Thursday, July 3, 2014

Why Are Mexicans wanting to Come to The US & Why Are We Not Crossing.. Yet

We originally were going to spend today's posting wrapping up the 2014 Economic World Cup (we will do that early next week instead)

Instead, given all the recent news about illegals crossing the border into the US from Mexico, we were sincerely wondering from an economic perspective Why??

Really..  given the economic juxtaposition of both the US and Mexico, why aren't more Americans illegally crossing the Rio Grande for better opportunities?

Today its 'celebrated' that our unemployment rate has dropped to 6.1% today even though only 288k jobs have been created mostly retail and service sector jobs i.e servers, busboys,etc..

Yet Mexico's unemployment rate currently is 4.92%
Its pretty ironic that the destructive NAFTA agreement has shifted millions of jobs from the US to Mexico over the last 20+ years pretty much decimating our production base and turning our populace from creators and builders to one of service and selling..

And yet all these Mexicans want to rush up northward where the jobs aren't.

Currently the US is carrying a debt of $17.5 Trillion equally a whopping 104.52% of total GDP which means every single penny the government takes in annually and it still has to borrow to keep afloat yet still refuses to tax the wealthy and corporations their fair share..

In Mexico, is about $600 billion in US dollars which represents only 46.5% of their GDP.

Each American is on the hook for $53,163 to pay off the debt; In Mexico its $4,941 per person..
Mexico's deficit (the amount a government must come up with to make minimum payment of their debt responsibilities is $48.4 billion'  For the US, its $1.23 Trillion..

And for some reason everyone is sneaking across the desert to come here when we should be crossing into there..

Problem is for most people, the effects of all this debt isn't being felt and many people around the world believe the propaganda lies we spread; that we're #1 and no better place to live and have a future..

That was true once.. it isn't anymore..

And most are clueless to this.. Immigrant and Native...
But what you have in Mexico for many years is what's ultimately coming to the US -- Dramatic wage disparity..

The reason so many businesses were eager-beaver to export their production facilities south of the border was to take advantage of the extremely cheap labor force..

Recently Mexico raised its minimum wage to 63.77 pesos which translates to $4.91 US dollars..  A DAY!!

A Mexican who works minimum wage will take in about 62 cents an hour for his/her labor and over the course of a full year earn around $1,276 US Dollars..

So you can see while millions of Americans snub their nose at $7.25/hr US minimum wage and in many places are demanding it be raised to $10.10 and in some cases up to $15/hr..
That $7.25 looks Mighty attractive to someone used to making 62 cents...   That $7.25 is an increase of over 1100%

And even if illegals cross the border and are taken advantage of at $2/hr that's 3x more than they were making..

You can see why corporations deep down need and want as many illegals crossing the border as possible.. Depressed wages mean greater profit..  So much so even temps can be undercut

Now ultimately what is going to happen over the next couple decades if not sooner is wages dramatically rise in the 3rd world nations and sputter to a continued stand-still here until there's an 'even playing field'
~ Prior to the end of the Mexican War, all territory in green and orange/green stripes was part of Mexico..  After 1848, it wasn't..

Once that happens, corporations will bring the manufacturing jobs back to the US but it will mean our economy is so depressed that it is cheaper to hire an American than a Mexican or Cambodian or Jordanian..

And then the exodus will begin... Southward..

And this goal is achieved not by lowering wages but simply keeping them as-is while every other cost and expense skyrockets..

A recent article in WSJ showed that real wages adjusted for inflation have remained stagnant since 1990 while the cost to rent have increased by a whopping 15%
~ Battle flag flown during Mexican War..

In simple terms, a $700/month rental in 1990 ($8,400 annually) is now $805/month ($9,660 annually)..  That's over $1,200 a year more to rent while not receiving $1,200+ more in earnings..

Business.. Corporations.. Banks.. Wall Street..  As EVIL entities that exist short of Satan himself in a Matrix-like System where the slave masses are conditioned to celebrate their masters and overseers' financial successes as the world converts into 21st century Feudalism..

We can't predict the future here at A&G but we don't think it would hurt to brush up on your Espanol..

Que tengan un buen fin de semana .. Nos vemos el lunes

** Have a good weekend.. See you back on Monday