Economic ignorance or a real concern?

[olegvolk]

Originally published at VolkStudio Blog. You can comment here or there.

I see people bellyaching about Mexicans working in the US and sending cash home. When a person performs work or sells a product, they get money for it. The money is a claim on future services or goods. If that money/claim is saved, then the value of the remaining money in the US

Comments

walking money

[anonymous]

One problem is that our money is based on debt created from nothing because of fractional reserve banking. What keeps the economy going is the velocity of money in circulation. When money walks away, the circulation falls and debts cannot be repaid (or at least it becomes much harder), and the producers slowly go bankrupt, i.e., the banks own everything.... then rent the means of production out to debt slaves who work or die.

Another problem is that it means that American's are not doing the jobs, in part because the lower-cost labor is pushing wages down for domestic workers, meaning men can't find jobs and form families. It's literally destroying our nation (people).

[seadevil001]

Only problem with that is not sending money per se, but dumping on the workforce market. Because 80% of Mexican worker family can use much cheaper cost of life in Mexico, it means he/she can charge half or even less for comparable services then US worker. And, if you take in equation that most of Mexicans does not pay taxes, but use US community services you will get rather jarring picture.