Thread: WHY DON'T WE JUST IMPROVE THE ECONOMY OF MEXICO?

WHY DON'T WE JUST IMPROVE THE ECONOMY OF MEXICO?


By David J. Stoddard

October 9, 2006

NewsWithViews.com

How often have you flipped the channels or tuned your radio and found some talking head with the brilliant idea about how to solve the illegal alien invasion by improving the economy of Mexico? Usually this expert has the stellar qualifications to comment on these solutions because he spent his Spring vacation in Cancun some ten years ago. Or, perhaps he is an expert because he likes to eat at Taco Bell? Nonetheless, he is presented as an expert by the media.

Anyone who believes this is a simple solution displays an abysmal lack of understanding of Mexico and all things Mexican.

First of all, this year, there will be at least 23 billion dollars sent to Mexico by Mexicans in the United States, most of whom are living and working in an illegal status. The amount sent to Mexico has been increasing by around 10% to 15% per year for the last decade.

If billions of dollars withdrawn from the American economy and sent to Mexico every year hasn't improved the economy of Mexico, what will? I assume that these talking heads are thinking of opening businesses in Mexico and subsequently employing Mexicans thereby improving the economy of Mexico. This is a noble gesture, and if it were not for the Mexicans themselves, it might just work.

The border is strewn with relics of failed enterprises attempting to do exactly what these talking heads recommend.

But there are a number of reasons why Mexico has not become an economic power through foreign investment.

One of those reasons is that Mexico's law is under the Napoleonic system. If one is accused to committing an illegal act, he must prove himself innocent under Mexican law. Stated another way; If one is accused of an illegal act, the burden of proof is upon the accused to prove himself innocent.

Another reason is that under Mexican law, a business enterprise is required to be at least 51% owned by a Mexican. The logical answer to that is to take in a Mexican partner and set up shop, which is what many have done.

Under Mexican law, property located within 100 km of any international boundary cannot be owned by a foreign national. So this means, after taking in a Mexican partner, any real estate must be put into the partner's name. The solution is to find a trustworthy partner and have him listed as the legal owner of the property.

What if you buy commercial property beyond the 100 km zone? You can but it must still be in the partner's name because you are not legally immigrated into Mexico and it is virtually impossible to do so because Mexico's immigration laws are so exclusive.

But let's assume that a potential businessman with money to invest finds a Mexican partner and suitable real estate. The next thing to be done is to get the required permits and licenses. Mexico operates under the mordida system. This means that every step of the way you must bribe public officials, often paying thousands of dollars just to get the business licenses and permits. Then you must pay more mordida to get utility hookups and other services needed just to open the doors of the business.

Finally, the day arrives and you have official permission to conduct business and the necessary services are acquired. You will next need employees. You will need to pay the government of Mexico a year's salary for each employee. This money is allegedly set aside as severance pay in the event the job is eliminated. Then, there must be a fund for the employee's social security and income taxes, all to be paid by the businessman up front, just in case. Then there will be property taxes, sales taxes and a myriad of other fees and stipends.

So now you and your Mexican partner are in business. You will have bought the necessary office furniture and equipment to manufacture widgets. Or, in the event you have a moneyed Mexican partner you have paid for half of all that.

Now you are open for business and making pesos. After the business becomes established and doing well, you will likely, every so often, have an employee strike for more pay and benefits. Strikes are a way of life in Mexico, and Mexican law is slanted to benefit the worker. Expect and plan for periodic strikes.

Then, as a fact of conducting business in Mexico, you will have employee thefts. It is expected and accepted. The thefts may be from the cash register, in merchandise or services. There will be employee thefts, guaranteed. It is a cultural thing; "It is alright to steal from the patron as long as you don't steal too much." Employers of illegal aliens in the United States are all too familiar with this cultural idiosyncrasy.

(There are employee thefts in the United States as well, but it is considered a crime and when discovered, dealt with severely. In Mexico it is considered a cost of doing business and, more often than not, gets a wink and a smile from officialdom).

So, now a business has been established. Equipment, real estate, machinery and merchandise have been bought. The permits, licenses, fees and mordida has been paid. The business has been doing fine and everybody is making money.

The next pitfall is where thousands of well meaning and sincere U.S. businessmen have been destroyed in Mexico.

Your Mexican partner decides that he doesn't want to be a partner anymore. He wants the whole business for himself. Does he feel the need to buy you out? You better hope so. But usually what happens is he accuses you of defrauding him and files suit in a Mexican court under Mexican law.

Remember you are a foreigner? Remember that your partner owns 51% of the business and the property is in his name? Remember also that you are under the Napoleonic system of law? Can you prove that you did NOT defraud your "partner"?

You will go to court with a civil/criminal complaint filed against you by your partner. The judge will be a Mexican. There will be no jury. (There are no jury trials in Mexico.)

Even if you get an honest and sincere judge, Mexican law, being what it is, weighs heavily in favor of your partner. This exact scenario has played out time and again in Mexico. The end result is that the gringo is booted out of the country and the business becomes the sole property of the Mexican.

So, to all those talking heads who say so glibly, "Let's just improve the economy of Mexico", I invite you to go to Mexico, open businesses so you can employ Mexicans and improve their economy.



Dave Stoddard has lived and worked on the border all his live. He has traveled in Mexico and has friends and family there. Dave lives near the Mexican Border in Cochise County, Arizona. He speaks, reads and writes Spanish fluently.

Mr. Stoddard spent 27 years in the Border Patrol and served in Calexico, California, Vermont, Yuma, Tucson Sector Headquarters and Naco, Arizona. He also worked in Texas, Florida, Puerto Rico and other locations.

Stoddard provided testimony about immigration reform to Rep. F. James Sensenbrenner's (R-WI) House Subcommittee on Immigration and Claims in 1999 and a Congressional subcommittee on Criminal Justice, Drug Policy and Human Resources in 2002. He has also been a guest on multiple nationally broadcast Radio and television programs, including Bill O'Reilly's "The Factor."

http://www.newswithviews.com/Stoddard/david1.htm

Improving Mexico's economy is Mexico's problem not America's. I get tired of hearing when it comes to many countries in the world, why doesn't America do something. It's time these third world lazy countries got off their rears and took some sort of pride in their own land.
And yes with all the money being sent back to Mexico where is the improvement? How many U.S companies have moved down there already?

Viva the Revolution

If I saw Mexicans go back to mexico with the Idea of taking over there government, I would make made in mexico #2 to made in america for purchase. Probably they are smart to export labor because the brighter ones with initiative like many here would kick the Mexican governments butt

Why don't they just change Mexico's economy = Mexican corruption (the cause of illegal immigration) is not America's problem to fix.

I've been thinking about moving there...must be getting pretty underpopulated.

You certainly are right about that jonhaloi
But our Government has made it the problem
of the American people and we can't deny it is changing
the face of our entire country.

The OBL justifies that illegal alien workers are good and crucial to the US economy, then why is Mexico bleeding economic improvement by allowing them to leave?

Dixie

As corrupt as Mexico is if we sent aid down there most of it would end up in the pockets of corrupt officials anyway. The poor would never see a dime.

Originally Posted by olivermyboy

I've been thinking about moving there...must be getting pretty underpopulated.

You are so right! I was in a Mexico a few years ago and it did seem like we have more Mexicans here. Mexico has plenty of money, it is just in the wrong hands. You know what is ironic? If all of these illegals were treated as "regular citizens", they would not think that the US was so amazing, because we don't get all of the freebies and we pay for everything, and then some.

Originally Posted by jonhaloi

Why don't they just change Mexico's economy = Mexican corruption (the cause of illegal immigration) is not America's problem to fix.

We've got to reframe the illegal immigration debate to emphasize the abdication of responsibility on the part of Mexico. The open borders crowd has gotten away with ignoring the elephant in the room that is Mexico long enough. I'm fed up with those who've tried to normalize the overwhelming presence of another nation's people in our country, as if they dropped here from thin air. The enablers give them loans, benefits and every other incentive to never return from whence they came. Our so-called elites talk about a temporary guestworker program that will be anything but. And a nation continues to transplant itself here. Meanwhile, Mexico gets a free pass which allows it to maintain status quo. There's something terribly disturbing, even criminal, about this picture.

I've emailed and faxed my Congressional representatives repeatedly about this, and I can only surmise from their response that they simply don't care. I've come to the conclusion that the only way to get through to Congress as a whole is to be in their faces REPEATEDLY. They've misrepresented the will of the American people, and refused to allow a broader debate about the issue of immigration. We're to blindly accept the idea of a guestworker program and "earned ciitizenship" on the vaguest of terms. If you question the wisdom of this, you're a "racist", or as Mr. Chamber of Commerce so tactfully put it, "dumb as a box of rocks". These are acts of hostility, plain and simple.

It's time to fight fire with fire, and the best way to do this is to systematically dismantle every lie and absurd argument these people spew. Maybe it's time to launch a relentless campaign of ridicule lampooing the absurd rhetoric and sacred cows of these fools. Noone likes to be made fun of, particularly those with huge egos.

Sorry, got off on a rant and kind of veered from the topic of the thread.