Thread: Hispanic Community Feels Strong Punch from Weak Economy

Hispanic Community Feels Strong Punch from Weak Economy
Marina Giovannelli

WILMINGTON, NC (2008-08-26) Analysts can put a number on rising inflation and dips in the housing market.

But it's harder to measure the effects of a sputtering economy on minority communities that sometimes work and live on the fringes of the mainstream economy.

In her small Mexican store on Carolina Beach Road in Wilmington, Esmeralda Mondrago sits behind her silent cash register. She's been in business about a year and a half, and she's getting ready to put a for sale sign up in the window.

"The economy is very low, I don't have sales, and to be honest, I'm not making enough to pay the rent, and the bills are higher every day," says Mondrago.

She says business has slowed to a trickle in the last three months. Esmeralda's husband David Mondrago says their customers are mostly Hispanic, and they're now buying cheaper food Wal-Mart and Food Lion.

"People prefer to buy stuff at big stores like Wal-Mart and Foodlion, and with stores like this, people just stop in to buy some little thing," says Mondrago.

Both Hispanic and non-Hispanic businesses are hurting. But because most Hispanics work in industries hit hardest by the economy, they're shopping less at businesses that cater to them.

Construction break down

David Mondrago is a roofer. He says he used to work construction six days a week. Now he's lucky if he works four days a week.

Rakesh Kochhar, a research analyst with the Pew Hispanic Center, says the unemployment rate for Hispanics stands two percentage points higher than for non-Hispanics.

"The Hispanic unemployment rate has increased steadily, caused by the construction slowdown," says Kochhar.

Kochhar says the unemployment gap between Hispanics and non-Hispanics grew 75 percent in the last two years as developers reigned in construction.

"As the industry hit a slump, the workers that were let go were newly arrived, foreign born Hispanics," says Kochhar.

And the Hispanic construction workers who are still employed face obstacles that non-Hispanic workers may not.

Vulnerable workers

Danny moved to Wilmington from Honduras and found work building fences. When the time came to collect his second pay check, Danny says his employer refused to pay up. Danny asked we not use his last name for fear of retribution from his former employer.

"He said he was going to call immigration on me," says Danny.

Danny says his former employer insisted he had not worked those hours, and threatened to call immigration. "I went to get help from Amigos Internationals," says Danny.

Amigos Internationals is a Hispanic outreach organization in the Cape Fear region. After a year of legal battles, his employer was forced to pay Danny for his work.

Jeremy McKinney is an immigration lawyer in Greensboro, and he's dealt with labor disputes similar to Danny's.

"The cases usually unfold with the employer getting away with it because fundamentally the worker is undocumented and the employer knows it and is taking full advantage of it," says McKinney.

Immigration politics at play

Stepped up immigration enforcement across the state may make it harder for Hispanics to bounce back from economic hits.

While Cape Fear Community College enrollment spikes with people looking to improve their job prospects, undocumented Hispanics are not allowed to take classes.

And a state law passed two years ago says undocumented immigrants can't get drivers licenses.

Carlos Siercke is the director of the North Carolina Hispanic Chamber of Commerce.

"The employers are desperate because the hard working people are staying home, because in part some of them could not renew their drivers license," says Siercke.

Silver lining

But Siercke also says the economic downturn and loss of construction jobs may have a silver lining for the Hispanic community.

Siercke says entrepreneurs are seizing the economic climate as a business opportunity.

"So these people that are transitioning from construction into other types of jobs to start their own business," says Siercke.

And existing business owners are branching out and looking for new clients, possibly reversing the economic chain reaction with in the Hispanic business community.

"I've seen people venture into the non-Hispanic market, taking to people selling ink cartridges, tapping into other markets, venturing out to rest of general population, in long run, its good," says Siercke.

So like people across the country, Hispanics are feeling the pinch of a tight economy.

And while it didn't turn out well for Wilmington grocery store owner Esmeralda Mondrago, the current economic downturn may be an opportunity for Hispanics across the state to achieve the American dream on their own terms.

Do you have insight or expertise on this topic? Please email us, we'd like to hear from you. news@whqr.org.
http://tinyurl.com/6p2wmn

To all those jobless who prefer their last names not be used, I say, "welcome to what was once the American dream" which all of you illegals should take responsibility for ruining. Now go home--I am sure WalMart would love your business in your home country.
And to all the Chinese illegals, WalMart's deli counter does not have live ducks, chickens or geese for you to take home and slaughter for dinner.
(Per CNBC investigative report by David Faber) http://www.truveo.com/The-Age-of-Wal...t/id/994791740

AMERICANS KNOW JUST HOW BAD IT FEELS TO BE DONE DIRTY

GO HOME AND FIX YOUR OWN GOVERNMENTS; AMERICANS HAVE A MAJOR MESS TO FIX BECAUSE OF ILLEGALS, ELECTED OFFICIALS AND NO ENFORCEMENT OF THE LAWS UNTIL RECENTLY

"The cases usually unfold with the employer getting away with it because fundamentally the worker is undocumented and the employer knows it and is taking full advantage of it," says McKinney.

Sure would be nice if the illegal alien could turn in the businessman. IRS could do audit and fine him big time... The employer would also be charged with KNOWINGLY hiring an illegal. In reality this would get rid of both of them.

Both Hispanic and non-Hispanic businesses are hurting. But because most Hispanics work in industries hit hardest by the economy, they're shopping less at businesses that cater to them.

These businesses will soon go out of business as they should! Cater to one segment of the population at your peril. Economics 101. No sympathy.

While Cape Fear Community College enrollment spikes with people looking to improve their job prospects, undocumented Hispanics are not allowed to take classes.

And a state law passed two years ago says undocumented immigrants can't get drivers licenses.

Here's a clue - they are NOT welcome, they never were.

"I've seen people venture into the non-Hispanic market, taking to people selling ink cartridges, tapping into other markets, venturing out to rest of general population, in long run, its good," says Siercke.

Too little, too late. They insisted on not assimilating for so long, I doubt anyone will deal with these illegal aliens.[/quote]

Cape Fear is a fabulous name, and I suggest the remake of the movie to be more realistic--change the deranged madman terrorizing this family to an unemployed illegal alien with a touch of schizophrenic paranoia.
Forgive the snurlishness, but when will people realize enough is enough?