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By Sal Osio, JD

From the Publisher's Corne

July 20, 2010

Mi Punto de Vist

From the Publisher’s Corner

The US-Mexico Immigration Exchange

By Sal Osio, JD

Depending on your source, there are as many as 10 million undocumented immigrants from Mexico living in the United States. Of these some 3.5 million are undocumented workers, almost exclusively employed in the agricultural and labor intensive service industries. Their wages are typically below the ‘living wage’ index. They subsidize our agricultural industry, allow us to enjoy affordable services, commodities and products and assist our fringe companies to remain competitive in the global economy. In short, they render a valuable service from which America benefits.

The problem is that these laborers are here illegally. The greater problem, one that is exacerbated, is the fact that they start a family or bring their family members here. This burdens our school system and our community service institutions which are subsidized by tax dollars. And the perception, which although erroneous nonetheless creates a great divide in our society, that illegal immigrants receive more than they contribute. During recessionary economic cycles with high unemployment, the scapegoat is the undocumented worker. So much so that regional communities that are the most impacted by illegal immigration, such as Arizona, out of frustration enact discriminatory laws that impact all Hispanics.

Would we be satisfied if the undocumented workers did not start a family in our country and did not bring family members to our country? Almost unanimously, people with whom I have discussed this issue, have come to the conclusion that actually the ‘cheap labor’ is essential and OK if only we did not have to pay for the schools, health care, etc. for the family members of the undocumented workers. And, if we didn’t have to grant American citizenship to the U.S. born children of illegal aliens. In short, the worker is welcome. His family is not. It is that simple!

The practical solution then is the return to the ‘revolving door’ practice that existed before our recent paranoia shut down the ability of the undocumented worker to return to his homeland to visit with his family and then return to his job. This can be accomplished by negotiating a guest worker program with Mexico.

However, there is another consideration that would ameliorate the negative perception of importing labor from Mexico. And that is if Mexico would open its doors to our senior citizens and give them visa status allowing them to purchase property, work part time, open dollar savings accounts and retire in Mexico with the same rights as Mexican citizens other than the right to vote or hold political office. Mexico has a visa (rentista) program that allows foreigners with a minimum income ($1,500/mo) to reside in Mexico. However, this law is a quagmire of red tape, most time consuming, costly  and is capriciously administered by the local Mexican Consuls who have the jurisdiction to grant these visas. For this reason the program is ineffective. A tiny fraction of the 2+/- million Americans living in Mexico are rentistas. Primarily they are visitors who must return to the U.S. every six months.

Mexico should offer retired Americans and Canadians over the age of 65, who receive a social security or other pension benefits, a ‘Retirement Visa’ that would allow them to live in Mexico as residents with the right to render part tie services in a non-competitive field with Mexican workers, such as teaching the English language to the local population. This would open the flood gates to the 35 million American seniors on social security who seek a higher standard of living at affordable prices such as Mexico offers. Concurrently, Mexicans would find greater employment opportunities in their own country since an average of two workers would be required to service a retirement household. Additionally, retirement communities, with all of the economic benefits from the investment, would be developed throughout Mexico to accommodate the retirees. Both societies would receive a reciprocal benefit.

However, our seniors do not have access to their Medicare insurance benefits in Mexico. Without Medicare our retired would be denied a benefit which is indispensable at their advanced age. Accordingly, the U.S. and Canada should extend their respective Medicare benefits to their retired seniors living in Mexico. Naturally, our health delivery institutions and our pharmaceutical industry that enjoy a significant economic benefit would be opposed. However, this may be the only cost effective way of delivering health care. It is only a question of time before our taxpayers demand this economy. Meanwhile, however, the good news is that Mexico provides excellent health care at a very affordable cost within the reach of the infirmed.

There are approximately 35 million Americans receiving Medicare benefits. Medical assistance, al all levels, including in particular prescription medicines, is a fraction of the cost in Mexico. The savings is at least 50%. Therefore, if an American retires in Mexico, where his cost of living is less than 50% of the U.S. norm and his health care, likewise, is at a minimum savings of 50%, the retired person would benefit from a higher standard of living, in greater comfort, and Medicare would save over 50% of the cost. It is another win-win scenario.

The greatest benefit to the immigration exchange – ‘our old for their young’ – may be realized if we tied the immigration from Mexico, a guest worker program, to a reciprocal exchange, say on a one to one basis, one retiree for one worker.  If the immigration exchange program would induce 3.5 million Americans (10% of the Medicare population) to retire in Mexico, it would offset an equivalent number of undocumented workers in our country. It would be an even exchange with obvious benefits to all!

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Sal Osio is the Publisher of HispanicVista,.com. He can be reached at SPOsio@aol.com