Border Lines

Illegal aliens and illegal immigration issues are currently in the news, as protestors march, demonstrate and boycott in the United States. Sixty percent of the illegal aliens in our nation come from Mexico. But why are they coming here in the first place? Well, we know that the President of Mexico Vincent Fox is telling them to come here of course, but why? Well you might be surprised at one of the many reasons.

You see, Mexico is losing lots of jobs to China, for instance shirts, which sell to our shirt making and insignia company can be bought now for $1.00 US which hurts Mexico’s ability to produce at $1.00 and sell at $2.00. In China their cost is $.20 to $.50; so those jobs in textiles are moving to China where before they were in GA and the South.

Before furniture was being made in the US now is being made in Mexico and China. All the jobs we lost in the US with NAFTA went to Mexico, such as Cars, Furniture, trailer welding, chemical making, etc. This is a big issue for China for jobs to help with middle class building and to Mexico with jobs.

Also understand the dynamics of problems with population growth in both countries, weather and droughts, etc. Here is an interesting population clock to check out the expansion of both areas.

http://www.panaga.com/clocks/clocks.htm

Shoes are another big issue for the interior of Mexico where previously many shoes were made in Mexico. Now the price difference is too vast to contemplate a reasonable competitive market between the two countries; China and Mexico. Target customer base is of course in the US with our strong Middle Class that is where the highest price point is, look at the price of Nike here.

Even at Wal-Mart you can buy a leather pair of no brand sneakers that are pretty nice for $13.00. I know I am wearing a pair and I had to laugh at my great luck finding these nice shoes for such a bargain. Of course Mexico is not alone as jobs here shift there and China, UK and Africa, etc. Consider these issues when discussing illegal immigration and the economics of labor supply.