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- As migration from,
and remittances to, Mexico have decreased as a result of the current
recession, the Mexican economy ominously worsens
- Migration, remittances, and the national economy should be considered
as integral components in the debate over whether Mexico deserves to be
classified as a "failed state," and what should be United States policy
structures may be on the brink of collapse. While drug war violence has
dominated the recent news about the possible irreversible status as a
society beyond remediation, the topic of immigration has been either
marginalized or used to further promote fears that the conflict may
spread to the United States.
economic recession have replaced immigration reform on the United
States' policy agenda. However, the current financial crisis, and its
impact south of the border, is intricately linked to matters of
immigration, security, and Mexico's very cohesion.
Previous Mexican Economic Crises and their Impact on Migration
In the past, economic crises in Mexico have precipitated spikes in
immigration to the United States. In 1982, falling oil prices forced a
72 percent devaluation of the peso, resulting in a 30 percent increase
in Mexicans apprehended along the U.S. border, from 1 million to 1.3
million, in 1983 and 1984. In 1994, as the indigenous Zapatistas in the
southern Chiapas region welcomed the North American Free Trade
Agreement (NAFTA) with an uprising, the economic crisis resulting from
the peso's devaluation resulted in another 30 percent increase in
border apprehensions. Additional factors, both internal and external,
shaped Mexican migration to the United States in the 1990s. The Mexican
economy could not produce enough jobs to accommodate the country's
dramatic population growth (68 million in 1980 to 94 million in 1995).
Consequently, the preferred solution on both sides of the border was to
bolster the Mexican economy through NAFTA, which intended to limit the
population's incentive to immigrate illegally to the United States.
Increased border security and United States employment levels were
expected to further curb migration in the mid 1990s. However, the 1994
peso devaluation increased the relative value of dollars earned by
Mexicans in the United States, providing a major incentive for the
population to seek employment north of the border and send earnings
back home.
The Economic Recession's Impact on Mexico
The current global financial crisis appears to be having the opposite
effect on Mexican migration: poor economic conditions are motivating
Mexicans to remain at home. Mexico City's National Statistics,
Geography and Information Institute recently reported that, from August
2007 to August 2008, the illegal and legal outflow of migrants has
declined by over 50 percent, from 455,000 to 204,000. Additionally,
remittances - the funds sent from immigrants abroad to their families
at home - have decreased for the first time since 1995. The number of
Mexican households receiving money from relatives abroad, largely in
the United States, has fallen from 1.41 million in 2005 to 1.16 million
in 2008. Remittances themselves, second only to oil as Mexico's largest
source of foreign income, have decreased by 11.6 percent to $1.57
billion from January 2008 to January 2009, the state-run Banco de
Mexico revealed on March 3. The number of remittance transactions
declined by 20 percent in the same time period.
Although this decrease is less than that which the Banco de Mexico
forecasted, the financial crisis paints a bleak future for the Mexican
economy, whose expected negative growth of 0.8-1.8 percent would
represent the sharpest decline since that of 7 percent in 1995.
Independent economists are even less optimistic - United States
investment bank JPMorgan predicts that the Mexican economy will
contract by 4 percent in 2009. These decreases will have negative
consequences for a country whose development, as a result of economic
integration with the United States, has become dependent upon the legal
and illegal export of cheap labor and remittance seekers. In an article
published by Migration Information Source, Raul Delgado-Wise and Luis
Eduardo Guarnizo present Mexico's cheap labor / export-led model of
remittance-dependent development as having "imposed unsustainable
economic, social, and political costs upon Mexican society," including
the exodus of its domestic labor force and the ensuing relentless
impoverishment of rural areas.
Even a mass repopulation would not avoid straining the Mexican
economy. The Colegio de la Frontera Norte (COLEF) recently reported a
24.5 percent increase in Mexicans returning home from the United States
in 2007. Whether or not such a trend is true for 2008 and 2009 is as of
yet unknown. Nonetheless, if the economic recession and lack of
employment opportunities in the U.S.compels Mexicans to further
repatriate, the country would become increasingly vulnerable. According
to London's Latin News Daily, "Mexico would be unable to cope with a
mass return of migrant workers. For one, unemployment figures would
rise at a much faster pace and any further social unrest on the back of
this could destabilise the government."
Harsh economic conditions on both sides of the border also promise
to leave the 11.8 million Mexicans, or 10 percent of the Mexican
population, living in the United States and their southern dependents
in desperate situations. In general, Hispanic unemployment in the
United States rose from 5.1 percent in 2007 to 8.0 percent in 2008.
Hispanic immigrants are heavily concentrated in the industries left
most vulnerable by current conditions, such as construction,
manufacturing, leisure and hospitality, and support and personal
services. Americans' increased concern with job availability during the
crisis further limits the economic livelihoods of migrants and their
families. The remittance flows of other Central American states with
large migrant populations in the United States, such as El Salvador,
Guatemala, and Honduras, are not expected to be as severely effected as
those of Mexico. Many of these immigrants are granted temporary
protected status under special arrangements with the United States,
making their countries less vulnerable than Mexico to northern
political, legal, and economic fluctuations. The fact that the United
States and Mexico constitute, according to the World Bank, the "largest
immigration corridor in the world" further illustrates the profound
effect the decrease in migration and remittances may have on both sides
of the border.
Implications for Mexico and the United States
Evidently, through migration, remittances, and NAFTA-induced trade
integration, the Mexican economy has become increasingly dependent upon
that of the United States, making the former extremely vulnerable to
the effects of the current financial crisis. The decrease in migration
flows and remittances is thus implicit in the current debate about
Mexico's descent into being a "failed state." A Mexican economic
collapse, spurred by a decrease in the migrants and remittances upon
which the country' s economy is reliant, would weaken the state's
capacity to finance counter-narcotics activity, increase pay-rolls to
prevent political and military officials from corruption related to
drug trafficking, recuperate the depressed economy, and keep their best
and brightest at home. These series of developments would have a
negative consequence for the United States economy and the Obama
administration, as well. Mexico is the United States' third largest
export market, and the cheap labor that Mexican immigrants provide,
although not nearly as coveted given the current recession, is an
important part of the national economy. Additionally, Mexico's
potential economic and military collapse deserves to be viewed as a
national security threat to the U.S., given the spread of drug-related
violence to border states such as Arizona, where authorities blame a
rise in home invasions and kidnappings on organized crime from south of
the border.
Proposals
According to the London-based Latin American Weekly Report,
Mexico's crises of drug trafficking, migration, and economic
integration with the United States are interrelated and require an
accordingly nuanced approach from the Obama administration. Former U.S.
Ambassador to Mexico Jeffrey Davidow argues that, for the past three
decades, Washington has limited its policy towards Mexico to
one-dimensional approaches: drugs and economic stability in the 1980s
and 1990s, followed by immigration under the Bush Administration. Most
recently, U.S. policy is at risk of becoming narrowly focused on the
$1.6 billion, three-year Merida Initiative aimed against Mexican
narcotics trafficking, which Congress approved in 2008. Such
perspectives present the themes of Mexican policy as mutually exclusive
and lead to disproportionate focus on one aspect, such as aid for
military counter-narcotics activities. Davidow asserts that the current
U.S.-Mexican policy should avoid focusing solely on security, which may
be difficult considering the fear of Mexico's debilitating conflict,
which is moving north into the United States, between drug cartels and
the military.
The ambassador proposes that both countries establish commissions to
evaluate NAFTA's achievements and shortcomings. Mexico, recently
replaced by China as the United States' second largest source of
foreign trade (the largest is Canada) has not benefited fully from
NAFTA. Cheap goods from the north have forced domestic products from
the market, inexpensive Mexican labor has been exploited by United
States employers, and large U.S. agroindustries have used economic
pressure to force Mexican farmers from their land. Moreover, a recent
study conducted by Arnulfo R. Gomez of the Universidad Iberoamericana
found that the majority of Mexican exports are now destined for more
sources than the United States and that the maquila program of cheap
labor plants along the U.S.-Mexican border has proven ineffective in
transferring technology or developing Mexican supply chains. Mexico's
share of the United States import market has fallen from 11.59 percent
in 2002 to 10.7 percent in 2008, further indicating the erosion of
economic links between the two countries and the Calderon
administration's need to reevaluate trade with its northern neighbor.
Whether or not NAFTA will be revisited and reassessed, as President
Obama promised in his campaign, economic development through migration
and remittances should be viewed as one means of bolstering the Mexican
state and civil society in the face of crisis. United States policy and
aid should not be limited to counter-narcotics activity but should also
focus on facilitating domestic development and foreign remittances as
progressive steps towards fostering security and economic recovery. The
Obama administration's indicated shift from the persecution of illegal
immigrants to the vigilant monitoring of their employers would enable
Mexican migrant laborers to continue sending remittances home while
simultaneously limiting their employment opportunities to legal
channels, thus making illegal immigration less viable. At the same
time, means to facilitate legal immigration and employment should be
encouraged. A progressive and multifaceted United States policy towards
Mexico would view immigrants at this stage not as criminals but rather
as agents of change in Mexico's pacification and development process.
This analysis was prepared by COHA Research Associate Edward W. Littlefield
Founded in 1975, the Council on Hemispheric Affairs (COHA), a nonprofit, tax-exempt independent research and information organization, was established to promote the common interests of the hemisphere, raise the visibility of regional affairs and increase the importance of the inter-American relationship, as well as encourage the formulation of rational and constructive U.S. policies towards Latin America.
The president of the AFL-CIO warned of a large-scale revolt if corporate leaders use artificial intelligence to "put people out on the street with no path forward."
The leader of the AFL-CIO, the largest union federation in the United States, told elites and others gathered at the World Economic Forum in Davos, Switzerland on Wednesday that rapid advances in artificial intelligence risk turbocharging the worst inequities of the existing economic order, displacing workers en masse while enriching those at the very top.
Liz Shuler, the AFL-CIO's president, said during a panel discussion that if the billionaires and corporate titans currently directing AI developments are "looking to just deskill, dehumanize, replace workers" and "put people out on the street with no path forward—then absolutely you’re gonna have a revolution."
The economy in the US and around the world "isn't working for working people now," Shuler noted, citing unprecedented levels of inequality, workers being forced to take on multiple jobs to make ends meet, and widespread economic instability.
“Now, put AI on top of that," she continued. "The insecurity that we’re all experiencing—the fact that people are waking up and some new technology is landing on them in their jobs, without training, without them having a say. Of course they’re going to be anxious, of course they're going to be feeling insecure about what the future holds."
“I think we really need to stop, and say: ‘Who are we doing this for, what are the results we want, and how we get there?’" said Shuler. "We get there by including workers in the process."
The International Monetary Fund has estimated that roughly 40% of global employment is "exposed to AI." In advanced economies, according to the analysis, around 60% of jobs could be impacted by AI, either positively or negatively—with some jobs expected to disappear entirely.
Multinational corporate behemoths such as Amazon are actively planning to replace many of their workers with robots, efforts that have sparked the kinds of dire warnings that Shuler expressed at Davos, where AI is a centerpiece of this year's gathering.
In a letter to Amazon's billionaire founder, Jeff Bezos, late last year, US Sen. Bernie Sanders (I-Vt.) asked, "Are you going to simply dump these workers out on the street, or will you treat them with the dignity they deserve?"
"If Amazon succeeds on its massive automation plan," Sanders warned, "it will have a profound impact on blue-collar workers throughout America and will likely be used as a model by large corporations throughout America, including Walmart and UPS, to displace tens of millions of jobs.”
"Democrats have no obligation to support a bill that not only funds the dystopian scenes we are seeing in Minneapolis but will allow DHS to replicate that playbook of brutality in cities all over this country."
As congressional negotiators on Tuesday released a proposed spending bill for the US Department of Homeland Security, with the January 30 funding deadline rapidly approaching, critics of President Donald Trump's deadly immigration operations renewed calls for Democrats to oppose any new money for Immigration and Customs Enforcement.
"You can't count on Dem leadership to do much, but you can for sure trust these warriors for democracy to hustle like hell to pass a bipartisan deal to fully fund the Gestapo currently attacking our cities, rather than using this one moment of leverage to try to stop them. Bravo!" quipped progressive organizer Aaron Regunberg on social media.
Since an immigration agent fatally shot Renee Good in Minneapolis earlier this month, congressional Democrats have faced mounting pressure to significantly rein in DHS and its agencies, including ICE and Customs and Border Protection (CBP). While some progressive lawmakers have embraced such calls, neither Senate Minority Leader Chuck Schumer (D-NY) nor House Minority Leader Hakeem Jeffries (D-NY) has shown serious interest in using the appropriations process to that end.
Both Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.) and House Appropriations Committee Ranking Member Rosa DeLauro (D-Conn.) tried to frame the DHS bill released on Tuesday as taking "several steps in the right direction," in the words of DeLauro, who also acknowledged that "it does not include broader reforms Democrats proposed."
"I understand that many of my Democratic colleagues may be dissatisfied with any bill that funds ICE. I share their frustration with the out-of-control agency," DeLauro said, while also stressing that the bill "is more than just ICE." She specifically pointed to funding for the Federal Emergency Management Agency, Transportation Security Administration, and the US Coast Guard.
As a bill summary from Murray's office states, the legislation funds those and "other critical programs Americans count on" while cutting "funding for CBP by $1.3 billion relative to fiscal year 2025, providing $18.3 billion in total."
It also "flat-funds ICE at $10 billion, preventing any growth to ICE's annual budget, and it cuts ICE's enforcement and removal budget," the document details. "The bill provides $949 million (-15%) less in funding for ICE enforcement and removal operations than House Republicans' and $708 million (-11%) less than Senate Republicans’ proposed bills—and $114 million less than the fiscal year 2025 level."
After the murder of Renee Nicole Good, some influential Democrats seem to finally be willing to throw down. They're saying they'll vote NO on the upcoming DHS funding bill.Email and call your Senators right now. Tell them to block funding for ICE!!!www.fightforthefuture.org/actions/no-f...
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— Evan Greer (@evangreer.bsky.social) January 20, 2026 at 11:20 AM
Taking aim at the DHS secretary, Murray said in a statement that "what we have seen from Kristi Noem's Department of Homeland Security is frankly sick and un-American. ICE is out-of-control, terrorizing people, including American citizens, and actively making our communities less safe."
Sometimes, when members of Congress can't strike a deal before a funding deadline, they'll pass a continuing resolution that provides short-term funding to prevent a federal government shutdown and keep up negotiations. However, Murray suggested in a Tuesday statement that a CR is not a viable option because of the $75 billion for ICE included in the One Big Beautiful Bill Act that Trump signed last July.
"ICE must be reined in, and unfortunately, neither a CR nor a shutdown would do anything to restrain it, because, thanks to Republicans, ICE is now sitting on a massive slush fund it can tap whether or not we pass a funding bill," Murray said. "The suggestion that a shutdown in this moment might curb the lawlessness of this administration is not rooted in reality: Under a CR and in a shutdown, this administration can do everything they are already doing—but without any of the critical guardrails and constraints imposed by a full-year funding bill."
Murray also nodded to Republican control of Congress that the November midterms, arguing that "the hard truth is that Democrats must win political power to enact the kind of accountability we need... "If you believe that we should be putting more of our taxpayer dollars towards healthcare and that our immigration enforcement should be focused on actual criminals instead of tear-gassing American children, then we need to speak up again and again—and we must take our fight to the ballot box."
Other Democrats in Congress swiftly rejected the proposal. Sen. Chris Murphy (D-Conn.) said that it "puts no meaningful constraints on the growing lawlessness of ICE, and increases funding for detention over the last appropriations bill passed in 2024."
"I understand Democrats in these negotiations had a hard job—no new budget for DHS is going to cure all the rampant illegality happening within the department. But this bill doesn't put CBP agents back at the border where they belong and doesn't put checks on ICE’s out-of-control arrest and enforcement operations," he explained. "Democrats have no obligation to support a bill that not only funds the dystopian scenes we are seeing in Minneapolis but will allow DHS to replicate that playbook of brutality in cities all over this country."
The leadership of the nearly 100-member Congressional Progressive Caucus last week vowed to "oppose all funding" for US immigration enforcement in any upcoming appropriations bills without substantial reforms. CPC Chair Emerita Pramila Jayapal (D-Wash.) made her personal opposition to Tuesday's proposal clear, declaring that "it simply does not meet the moment we face in this country with the lawlessness" of ICE and CBP agents.
"We have seen ICE and DHS descending on cities across this country, racially profiling, and rounding up immigrants and US citizens alike—many of whom have committed no crimes," said Jayapal, an immigrant herself. "We have watched in horror as they have dragged people out into the snow and as they have shot and killed US citizens. As they foment this terror and chaos on our streets, 37 people have died in ICE custody since Trump came back to office."
"Meanwhile, across the country, over 70,000 people are being incarcerated in immigration jails run by private, for-profit prison contractors and being denied due process and bond hearings in Trump's mass detention effort that dozens of judges have said is not lawful," she stressed. "All of this is dangerous—not just for immigrants but for every single American worried about the erosion of Constitutional rights."
Rep. Ro Khanna (D-Calif.), one of several Democrats expected to run for president in 2028, also spoke out against the bill, telling NBC News that "it is a surrender to Trump's lawlessness. I will be a strong no and help lead the opposition to it."
The progressive group Indivisible has urged voters across the country "to light a fire under Democrats to demand they use their leverage on the DHS appropriations bill to rein in ICE and deny the Trump regime one penny more for its mass deportation machine."
"While most Republicans continue to rubber-stamp Trump's atrocities, some are becoming bolder in criticizing ICE's lawlessness and pattern of shredding constitutional protections," notes the group's webpage on reining in ICE. "The louder we are and the more we organize our communities to take action, the harder it will be for Republicans to continue backing Trump's terror campaign."
"Democrats need to stop whining about the limits of minority power and start fighting as hard as their constituents are to stop this regime’s mounting atrocities," the Indivisible page adds. "We're not accepting excuses, and we will hold every member of Congress accountable who chooses complicity and cowardice over courage."
Some critics of recent immigration actions have suggested that any Democrat who still supports funding ICE should be primaried. Philadelphia Inquirer columnist Will Bunch made that case Tuesday, writing that "the lack of appetite for utterly dismantling the DHS regime—despite its culture of violence and disrespect for law-abiding refugees—reminds too many voters of the cowardice that branded the Dems as losers in the first place."
"Dismantling the ICE regime needs to be the floor, not the ceiling" he added, "and any Democrat in Congress who doesn't get with the program can—and should—be replaced in the primaries to avoided another debacle with alienated or apathetic voters in November."
The MV Sagitta is at least the second Chinese-owned tanker seized during Trump's nearly monthlong "quarantine."
US forces on Tuesday seized a seventh oil tanker in the Caribbean Sea linked to Venezuela as President Donald Trump's military campaign to control the source of the world's largest petroleum reserves continued.
According to US Southern Command (SOUTHCOM), troops boarded and seized the MV Sagitta Tuesday morning "without incident."
"The apprehension of another tanker operating in defiance of President Trump’s established quarantine of sanctioned vessels in the Caribbean demonstrates our resolve to ensure that the only oil leaving Venezuela will be oil that is coordinated properly and lawfully," SOUTHCOM said.
The Sagitta is a Liberian-flagged vessel owned and managed by a company in China. It is at least the second Chinese-owned tanker taken by US forces since Trump's announcement last month of a "quarantine" on Venezuelan oil exports. Regional and world leaders have condemned the seizures as acts of "piracy."
International law experts contend that the blockade, sanctions, and strikes on boats allegedly transporting drugs—which have killed more than 120 people—are all illegal, as are the US bombing and invasion of Venezuela and kidnapping of Venezuelan President Nicolás Maduro and his wife, Cilia Flores.
The US Department of Justice indicted Maduro for alleged conspiracy to commit narco-terrorism, conspiracy to import cocaine into the United States, conspiracy to possess machine guns and destructive devices, and possession of such weapons. Maduro has pleaded not guilty to all charges, and has called himself a “prisoner of war.”