Free Trade and Immigration

Immigration is a big topic these days. On the conservative side of the political spectrum, the tone is often fierce and vile against immigrants. The cries of 'they are stealing our jobs' and 'go home' are heard over and over again. To me this is a bit ironic since most of the politicians that these same people support have contributed to the current state of immigration today. How, you say? Easy- economic liberalization and free trade.

In the days before NAFTA, Mexico was primarily a corporatist state under the leadership of the PRI (Partido Revolucionario Institucional) which ruled from 1929-2000. State owned monopolies controlled energy, utilities and basic infrastructure and Mexico had stringent controls in regards to foreign capitol. This changed beginning in 1984 when the IMF required certain conditions be met when granting Mexico a loan. Such things as financial liberalization, the reduction of trade barriers and budgetary restraints were mandated. During these years, the value of real workers' wags fell dramatically.

In time, US capitol was the driving force of Mexico’s primarily export-driven economy. Exports by multinationals increased to approximately 64% by 1998 and foreign investors, not Mexicans, were profiting from Mexican labor.

NAFTA only added to the woes of Mexicans once it was passed. On the wage front, real wages are lower in Mexico now than they were when NAFTA first took effect. Also, the flooding of the market with US subsidized food products has helped to jeopardize the livelihoods millions of Mexicans who depend on farming as a means to survive. Add to this the fact that the cost of basic goods have risen and this does not present a very rosy picture for most Mexicans. The super rich have benefited with the top 10 percent of households having increased its share of the national income while the other 90 percent have lost or seen no change at all. It is no wonder that the levels of immigration have risen to their current level.

Neoliberalization and free trade have been anything but helpful for millions around the world. Mexico is but one example of how countries are impacted by these policies. Politicians, often in the pocket of big business, and institutions such as the World Bank and IMF have advanced these policies for years always promosing the benefits are ‘just around the corner’ but, in reality, they never come. That is, unless you are lucky enough to be in the top 10%.