According to Mexico’s central bank, Mexican Americans sent home 26 Billion Dollars last year, a record high.
Mexicans living abroad sent cash home in record numbers last year. The vast majority of the cash came from those living in the United States.
Two main forces drove the trend: Mexico’s weak currency, the peso, and President Trump’s threat to slap a tax on cash shipments, known as remittances, sent from the U.S. to Mexico.
Mexicans sent home $26.1 billion from January to November 2017, according to figures released Tuesday by the central bank of Mexico. That’s the most ever recorded and better than the $24.1 billion sent in 2016 over the same period.
So basically, the United States is losing $26 Billion dollars a year to Mexico. All of this money would be great for America to have reinvested in our economy and not to Mexico. Also, notice what CNN claims in this. They make this story seem like less of a big deal by blaming Trump for the uptick. Clearly, by the 2016 numbers, this issue was still a big one long before Donald Trump. $26 Billion dollars is bad but so is $24 Billion dollars.
Barring a major setback in December, the total annual figure for 2017 is on pace to hit another record high.
Remittances are one of Mexico’s top sources of foreign income, outpacing oil exports, which totaled $18.5 billion between January and October, according to the most recent figures available at the Bank of Mexico. Manufacturing exports are the top source of foreign income for Mexico.
Also according to CNN, the Peso-US Dollar exchange rate(19.5-1) is one of the biggest drivers of this. Now, that also makes a lot of sense. Think about if you could make 19 extra dollars per dollar you made working somewhere. Everyone would do this and it would make your family in Mexico much weather much quicker. Here is what CNN fails to cover properly. The fail to connect this as a driver of illegal immigration. If Mexicans think that they can come here illegally and be safe from deportation why wouldn’t they? They can make money at a higher rate and then ship money that should be going back to the American economy into Mexico’s economy. The next thing they fail to mention enough is how Trump can use this to pay for the Border Wall.
Trump specifically threatened to slap a tax on Mexican remittances to pay for his proposed border wall. Economists say that particular threat has also encouraged Mexicans to send money home before any restrictions are put in place.
Notice how they just slip that in there and yet fail to talk about it any further. Why is this not something CNN brings up every time they talk about the Border Wall? Trump can use money that is supposed to go to Mexico to build his Wall. This isn’t saying that we would talk all of this money, it would simply be a tax everytime they ship money out of the country.