The Economy: Remittances Drop
by Angelina Vasquez
The economic crisis hits on both sides of the border.
Along with tougher illegal immigration laws,families who are dependent on remittances to pay for their living expenses like food and education have taken a toll.
Since late 2007, the country’s financial crisis has affected Mexican immigrants and their families back home. With living expenses in the United States increasing, along with foreclosers and the rising cost of gas, Mexican immigrants are sending less money and less frequent.
According to the New York Times, since 2007, the increasing rate of U.S. remittances began to stagnate and that it has only risen to 2%. Despite the failing economy, some Mexican immigrants still sent money back home, but at drastically lowered amounts and every three months instead of every month. Fatima Aguayo, 23, from North Hills CA said that her parents, immigrants from Michoacan, Mexico, used to send 200 dollars every three weeks to family members in Mexico, but now they send less, but they try to keep it consistent by still send money every three weeks.
Now that immigrants are sending less money, the pinch could be felt by family back in Mexico, because of the lack of their previous abundance, but the amount is even more depreciated because of the weakening U.S. dollar.
Tonia Sandoval, a 20 year-old student from Cal State University, Northridge, said her family used to send 500 dollars every two months to her aunt in Mexico, but had to cut back in the month in June 2008 and sent only 350 dollars. Sandoval said that she started to feel the impact of the U.S. economy when she got laid off from her job at a small business. “In May (2008) , a red flag popped up. My paycheck from work bounced. I went from 45 hours of working a week, to 8-10 hours.”
Sandoval recalls the impact of the reduced remittance that was made on her aunt living in Mexico, but said that her aunt was always grateful, but did not complain when the checks sent were dramatically less. Sandoval, whose aunt passed away about a month ago said that her family still continued to send remittances to her until her death even though the impact of sending the remittance was felt greatly in her immediate family.
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Fall 2008
Update 1