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Old 11-01-2008, 07:20 AM
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Felipe Calderón, who began his single sexenio (six-year term) as President of Mexico in December 2006, has made significant progress in the fight against narcotrafficking, but Mexicans are still waiting to see whether his government will successfully chal­lenge the private- and public-sector monopolies and duopolies that dominate huge portions of Mex­ico's economy.

These combines—in energy, telecommunica­tions, construction, food production, broadcasting, financial services, and transportation—have long been a drag on competitiveness and job creation. Notwithstanding Mexico's membership in the North American Free Trade Agreement (NAFTA), this "rop­ing off" of large sectors of the Mexican economy to benefit politically powerful rent-seekers has the same practical effect that traditional protectionist trade barriers have.

The health of Mexico's economy has a direct impact on U.S. immigration patterns. The failure of the Mexican economy to perform at peak efficiency and to realize its full potential over the past half-century has resulted in a flood of unemployed semi-skilled and unskilled Mexican job hunters seeking employment with their alluringly successful neigh­bor to the north. Illegal workers from Mexico are often willing to accept lower wages than legal U.S. workers will accept. U.S. employers in various labor-intensive fields operate much more efficiently than their Mexican counterparts do, and these low-wage workers magnify that productivity. The artifi­cially low cost of this labor (which also does not include all of the taxes necessary to offset the addi­tional costs to the government that are generated by these new residents) has created a strong demand for illegal workers from Mexico.

To remedy this situation, the Mexican govern­ment should open its oil, natural gas, and electricity generation and distribution sectors to private investment and participation. It should also break up private-sector monopolies and duopolies with more effective anti-trust legislation. The U.S. gov­ernment should offer technical assistance to help Mexico liberalize and open up its economy. The resulting flood of new private investment would create hundreds of thousands of new jobs that would encourage many would-be economic migrants to remain at home in Mexico.

"Supply Push" and "Demand Pull"
Immigration has become the most controversial, complex, and sensitive subject facing the United States today. It directly affects America's economy, culture, and future as a nation. Currently, anywhere from 12 million to 20 million illegal aliens reside in the United States—enough to populate America's three largest cities: New York, Los Angeles, and Chi­cago. An estimated half-million more people enter illegally every year.
If the Mexican government were to make the many changes needed to reduce the "supply push," and if the U.S. were simultaneously to make neces­sary changes in its immigration laws to weaken the "demand pull," there would be several positive developments.

In Mexico, the result would be the creation of new, sustainable private-sector jobs. More Mexicans would want to stay home to start businesses, and others would stay to work for them. Some Mexican migrants currently working in the United States would very likely return home, using their savings to start small businesses.

On the U.S. side of the border, prospective employers of legal immigrants would be forced to pay the full, true cost of that labor, including taxes to offset the additional costs to the government that are generated by these new residents, thereby weak­ening the demand magnet. The result would be a lessening of migration pressures at the U.S.–Mexico border, a reduction in the U.S. unemployment rate, and improved U.S. national security.

Tempted to Take the Easy Way Out
Historically, Mexican leaders have taken the easy way out—encouraging out-migration and receiving large inflows of hard-currency remittances in return—rather than confronting their economy's structural problems. In so doing, they took a page from the late Marshall Tito of Yugoslavia, who did the same thing when confronted with the failure of the Communist economic system in the 1970s. Tito simply exported his surplus workers to West­ern Europe.[15]

While this artful dodging by the politicians has benefited the elites who control the monopolies, state-owned firms, and powerful unions that repre­sent their workers, it has not responded to the needs and aspirations of the average Mexican citizen. Mex­icans might be able to get higher-paying jobs in the U.S. as illegal aliens, but they must live in constant fear of deportation. Many of these illegal workers are young single men, the demographic most likely to commit crimes and abuse drugs and alcohol

How Reforms in Mexico Could Make the U.S. More Secure
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Old 11-01-2008, 11:35 AM
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What we should have tried to do is encourage reform and stability and social justice in Mexico.

Massive emigration does not benefit a country because they very people who are fleeing are the ones they should be trying to keep. People need to work to improve their villages and regions.

By just packing up and leaving, very often leaving the family behind, exactly what is accomplished? Sure the individual illegal might feel he's hit the jackpot once he's landed in the USA, but nothing is done about the situation back home and especially not for the illegal's family that now risks financial abandonment.
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