Dear Mexico: you might wind up paying for that wall after all

posted at 2:01 pm on February 10, 2016 by Jazz Shaw

Over the weekend the former president of Mexico took a rather scoffing tone when he said that Mexico wasn’t going to pay one cent for Donald Trump’s “stupid wall.” This is a knock we’ve heard from plenty of The Donald’s critics back here at home as well, coming from Democrats and Republicans alike. I mean… it’s crazy, right? How could anyone expect that to happen?

There’s an article this week over at The Last Refuge which might be worth a look if you’ve got an open mind on the subject. One of the less commented on aspects of international relations with Mexico is the volume of cash which Mexicans living in America (including illegal aliens) send home every year to their families. There’s nothing shocking about the idea at first glance. People send money home all the time. But just how much is it? This report straight out of Mexico may come as a bit of a shock.

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.

This is apparently the reality of the Mexican economy. They have more cash flowing into the country via letters and wire service from people working in the United States than they get from exporting oil. And it’s not peanuts. As the author notes, this offers an opportunity for the next President to apply leverage if they have the will to do so.

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.

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)

Is it possible? Absolutely, assuming you can mount the pressure required to make it happen. It would be complicated and politically messy, but such things don’t seem to bother Trump much to begin with. It all comes down to the idea of directing law enforcement to direct resources and vigorous attention to impound all remittance payments derived from illegal wages. And once the word is out on the street that such payments are being looked at closely, both through electronic transactions and the purchase of money orders from banks and post offices, the flow might not be stopped but it would be severely reduced.

There’s an obvious downside to such a deal which can’t be ignored. Making a deal with Mexico to not do that if they agree to certain terms and conditions (such as working on wall construction) carries with it an admission that we’re not going to enforce the law or pay attention to illegals currently in the country. But as I said… this is a complicated puzzle to solve. If the effort to monitor and seize remittances in this fashion is beyond the scope of available resources then it’s not going to get done anyway. And if the result is a wall, well… perhaps you come up with a net win out of the deal.

Your thoughts? Is this still just crazy talk or do we really have the leverage to pull this off?

TrumpEagle


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Comment pages: 1 2 3 4

The heck I can express my opinion.

TexasDude on February 10, 2016 at 7:03 PM

so your opinion is still that i should get out of my own country? Nice. Okay you are right you are entitled to your opinion and i am entitled to mine. i tried to be reasonable and fair and i have posted plenty on this thread that agreed with you but you still stand by kicking me out? then go for it Dude. this conversation is now done , you no longer deserve my time or attention.

Have a blessed life.

katee bayer on February 10, 2016 at 7:13 PM

If remittances totaled 23.6 billion in 2014 and petroleum money totaled 23.4 billion in 2014, then 2015 is the SECOND year that remittances were higher.

blackgriffin on February 10, 2016 at 7:13 PM

If remittances totaled 23.6 billion in 2014 and petroleum money totaled 23.4 billion in 2014, then 2015 is the SECOND year that remittances were higher.

blackgriffin on February 10, 2016 at 7:13 PM

nice catch thank you for pointing it out.

katee bayer on February 10, 2016 at 7:23 PM

Whatever, kateee ….

Do as you wish.

TexasDude on February 10, 2016 at 7:25 PM

And here ya go …. what? I am supposed to be apologetic because of … what?

I just don’t care.

Fine,

Truly, I don’t care.

TexasDude on February 10, 2016 at 7:35 PM

Many years ago Michael Savaged talked about a 30% tax on all money transfers to Mexico.

TX-eye on February 10, 2016 at 8:37 PM

katee bayer on February 10, 2016 at 5:26 PM

My retirement business was selling exotic sourdough starters. I was well aware that it was like selling kittens. After the first sale, customer had no need to buy more unless they killed or contaminated their starter– a remarkable number do, incidently. Just how do you kill yeast and lactobacilli?

None the less, it was fun, made me some ‘butter and egg money’ — I’d started in a paid job at age eight and was forcibly retired at sixty by degenerative joint disease. Not a big business, to be sure, but it was something I could do from a wheelchair and a computer, it entertained me and kept me off the streets. Small wins all around.

meerbock on February 10, 2016 at 9:31 PM

meerbock on February 10, 2016 at 9:31 PM

Oooo I know! The sponge that it is on is not rotated out so it becomes more or less useless! I know because my new job of course is making bread/buns and our dough mixer tends to be an idiot and well, messes that up many of time. That and the guy can make a mix right to save his life, you know how much it stinks when someone adds to much water to the dough? On old fashion types of dough no less. I run the proofers and the ovens so its a real blast when I see stuff coming out of the proofer twice the size they should be, and then go get baked only to be really discolored and flat.

watertown on February 10, 2016 at 9:43 PM

I buy a lot of flour, because the cultures are like ‘The Blob’ in the old 50’s movie. If you aren’t baking often enough, you need to feed it and then throw most of it out or give it away to someone. I try to keep my favorite three to half-full quart peanut butter jars

meerbock on February 10, 2016 at 9:53 PM

Should have added that all the others are either frozen or dried and ‘ensporulated’ for storage and shipment.

meerbock on February 10, 2016 at 9:55 PM

Your shop is using a ‘poolish’ method I’m assuming? Water is a great way to ruin a nice substantial sponge from night before.

I think it would be great to have one of those things! Whhooosh! Voila! Nice tough rind soon to be crunchy crust.

meerbock on February 10, 2016 at 9:59 PM

https://en.wikipedia.org/wiki/United_States_foreign_aid

Mexico got US foreign aid in 2013 of roughly 419 MILLION ANNUAL dollars of that 348 million was economic and 71 million military.

Simple if they refuse. Redirect their aid to the wall bond to pay off the construction then once paid just redirect it back to paying off the the US debt as a punitive measure. Its budget games but to our benefit for once. If the money is from our idiotic historic charity or from their taxes it is all the same as far as budgeting. Bottom line for US it is money our budget already had spent now redirected and for Mexico it is income no longer coming.

C-Low on February 10, 2016 at 10:56 PM

Maybe TRUMP will be nice & say we will pay for half of the total bill =P

LurkerDood on February 10, 2016 at 11:06 PM

All we have to do is start coordinating audits (aka raids) on companies that employ illegals.
We can give rewards to patriots who turn in scofflaws.

You have an illegal maid, nanny, or landscaper you get fined and do time.
You asshole neighbor that turns you in gets a 5000 dollar reward.

In Texas if a game warden catches you with a speckled trout that is 1/2 inch too short they can immediately seize your boat, trailer and the truck you towed the boat with.

When we catch a landscaper with illegals in the truck, we deport the illegals, seize the truck, trailer and equipment and sell it to some enterprising person.

We can then start cutting back on welfare as all the new job openings come about.

Within weeks of enforcing these policies there will be a mass exodus heading south, north and back across the ocean.

esnap on February 11, 2016 at 2:15 AM

Is this still just crazy talk or do we really have the leverage to pull this off?

You are literally go-to-the-psych-ward crazy if you think Mexico is going to pay a dime towards Trump’s wall.

triple on February 11, 2016 at 8:57 AM

Mexico got US foreign aid in 2013 of roughly 419 MILLION ANNUAL dollars of that 348 million was economic and 71 million military.

yeah, and? Building a wall would be more expensive. We already built a wall during bush’s presidency, or at least tried to. Congress wouldn’t fund it beyond 1.2 billion. It would take 6 billion dollars to complete a wall.

But sure, mexico will pay us six billion dollars because they don’t want to lose 400 mil in foreign aid. Okay.

triple on February 11, 2016 at 9:00 AM

Here’s a question: Couldn’t we just place a tax on all monetary wire transfers to Mexico? Say three percent? It would only be a temporary tax until the wall and other enforcement measures are full funded. Then the Mexicans ARE technically paying for the wall, we avoid the troublesome issues of enforcement and what can the Mexican government do to stop us? Risk NAFTA? And we could get really nasty if need be and raise the amount to ten percent if we had to. Wouldn’t that work?

eyesights on February 11, 2016 at 10:08 AM

Isn’t it also true that Mexico also receives financial aid from us? Don’t have specifics but we pumped money to protect their economy in the Bush senior administration so it probably continues. Cutting in to assistance like that is not difficult to do. We don’t need their permission to not give them money.

Trump critics and trolls were being deliberately obtuse on the very obvious ways to get Mexico to pay for their societal emigration problem. We don’t have this issue with most countries.

But taxing the wires from illegals will also increase the self deportation pressure and go some way to paying for the costs of these dependent immigrants.

virgo on February 11, 2016 at 10:25 AM

Jazz,
It’s m ore than just paying for the fence; there is no incentive for the many countries involved to do what it would take.

Fausta Wertz on February 11, 2016 at 11:29 AM

United States gives Mexico over $500 MILLION per year in foreign aid. Divert that money to the Trump Wall, along with a percentage from a remittance fee, and that will easily pay for the construction.

IFTYS on February 11, 2016 at 2:26 PM

But sure, mexico will pay us six billion dollars because they don’t want to lose 400 mil in foreign aid. Okay.

triple on February 11, 2016 at 9:00 AM

If we are able to recover 10% of the $24 BILLION going across the boarder, in four years, your $6 Billion cost would be covered.

IFTYS on February 11, 2016 at 2:29 PM

Is this still just crazy talk or do we really have the leverage to pull this off?

If “we” means the moribund Washington Dem/Rep cartel, then NO.

If “we” means a Trump or Cruz administration, then YES.

landlines on February 11, 2016 at 4:41 PM

President Trump: “So, let me get this straight, Madam Minority Leader. Your party has never met a tax it didn’t want to hike, until now.”

Nancy Pelosi: blahblahblahsquawksquawksquawkyaddayaddayadda

Trump: “Oh, I get it. So, you’d rather that illegal aliens from Mexico hang on to THEIR money…but the American citizens who are paying for the same welfare state those aliens are abusing should keep on ponying up? Do you REALLY think that’s a winning position, Nancy? You want to bet a few more House seats on that, and a few more Senate seats in the 2018 mid-terms? Because I’d be happy to take you up on that…”

Archangel Nation on February 11, 2016 at 7:56 PM

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