The Maquiladoras: A Split Market

1. Do you think the expansion of maquiladoras has been more of a benefit or a harm to Mexico? Why?

This process has restricted markets for home industries, driven out local producers, and forced people to immigrate. The U.S. borders can never be sealed, because millions of people are seeking ways to support their families, so will come to where jobs are available. Furthermore, American businesses want and need these workers. While the multinational corporations and their rich investors benefit from corporate welfare deals and seek out havens to avoid supporting society with their taxes, ordinary Americans have to pick up their tab.

Employing Mexicans for such minimal wages implies a peculiar kind of a 20th century imperialism: GM is able to extract enormous profits and to become the world’s largest corporation by super-exploiting labor in a country less well developed and economically influenced by the USA.

As the population of Latin America and the Caribbean raised in 1995 with a 190 percent increase (Gonzalez 199), the job markets in Mexico are becoming scarce and competitive. The living conditions of residents in provincial towns like in Cheran, “whose timber-based economy is in tatters” (Martinez 9) are greatly affected. Mexican immigrant workers are forced to cross the border and find a greener pasture in the United States, because “in 1994, Mexico was crippled by a profound-and-prolonged-economic crisis” (Martinez 8). With the huge influx of Mexican immigrant workers coming to the States in search for better jobs, the US citizens are concerned about the economic impact: jobs, government and public services. However, the Americans’ concern that the immigrants are draining the nation’s resources, is a sweeping statement, it is based on a myth. There are many recent studies that the immigrant’s population living in the United States helps the economy. Similarly, the Mexican government and immigrant families are grateful for their immigrant workers for lifting the ailing economy and the status of immigrant families. Immigrant workers, legal or illegal, are positively reshaping the economy of sending and receiving countries through these major myths.

The former includes garments and textiles, footwear, electronics and various other sectors that require a large labour force to produce its goods or services, whereas the latter, includes—but not limited to— the production of chemicals, petroleum and automobiles. Among the many industries mentioned above, garment and textile and the automotive industries predominate in the maquiladoras. In fact, Wilson (1995) states that the automobile industry in its search for cheaper labor in the wake of increasing competition from the Asia market led U.S. companies like Ford, Chrysler and General Motors to significantly increase their investments in the maquiladoras in the 1980s (Wilson, 1995, p. 142). In regards to the garments and textiles, Billes (2003) argues that the movement from the border regions the interior parts was most apparent for firms that produced garments and textiles. Moreover, the search for cheaper labor as wages in the urban and northern border regions were rising led firm to migrate to poorer states like Yucatan (Billes, 2003, p.

To elaborate, the farmworkers have been laboring day and night, even when their bodies are in pain. As stated by a young girl, named Carmen, “‘She (mom) doesn’t want to see me work there (in the fields), … she says because it’s a lot of work, … She doesn’t want me to go through what she goes through (in the fields). She says it’s really painful, hard work. Every night I massage her back so that she can feel better in the morning.’” As migrant worker, children who work and go to school, never have the chance to have a full education or experiences with friends. We know this because NBC’s Child Labor: Young Hands Picking Our Food states, “Critics of current U.S. labor law say these childhood dreams are jeopardized by a relentless cycle where young workers drop out of school to follow their families and the crops for work and then remain stuck in the fields because the children never finish their high school education.” Also, the Braceros during WWII worked hard, however, their paychecks seem to always show signs of deduction. We know this from the article, The Realities of Life and Labor, in which a man stated, “‘Sometimes the check stubs indicate the deduction and sometimes they

Contrary to what most Americans believe, illegal immigrants are not causing our economy to weaken, in fact, they are causing just the opposite. Immigration enforcement has increased greatly in the past few years and undocumented immigrant workers are being deported much more frequently. America refuses to recognize the positive impact these illegal workers have on our economy. Without the surplus of illegal immigrant workers in the U.S. our country’s economy would suffer greatly. Illegal immigrant workers help our economy flourish and they positively influence the American workforce.

In the United States illegal immigration benefits the economy and growth, but also creates more problems such as inviting more immigrants. According to the article Undocumented Immigrants Should Receive Social Services by Melissa Marietta confirms “Immigrants to this country are not fighting for a student loan or access to a free clinic; they are fighting for the opportunities that they are denied in their native country” (Marietta). Most people look for a better future and head towards the opportunities illegal immigrants recognize United States as a land of opportunities. There are many working opportunities such as mining, railroad, lumbering, and construction in the United States. For example, a common job for illegal immigrants is the construction field. The

The wages and conditions of the work environment are good in relation to other opportunities the citizens of these countries have. Not only do these people now have a job that feeds their families, they are learning skills that may benefit them in the future. The companies may also argue that they are not violating any laws that the country has enacted. Without the use of cheap labor in foreign markets not only would the company and it’s stockholders lose profits, but the products being produced would be more expensive when entering the United States’ market. This in turn would adversely affect the American consumer.

Currently eighty-nine percent of Mexico lives in poverty. The average Mexican worker slaves all day for a pathetic forty pesos. (Mexico Child Link. http://www.mexico-child-link.org/mexico-factfile-statistics.htm). That is two dollars a day in America.

12). A 2007 study on immigrants in Arkansas found that the total economic impact of Arkansas’ one hundred thousand, fifty one percent undocumented, on the state economy is nearly three billion dollars (Willis par. 5). Texas comptroller study found that the one million four hundred thousand undocumented immigrants living in Texas in 2005 contributed 17.7 billion dollars to the state economy (Willis par. 5). Illegal immigrants also take low paying jobs. Most Americans do not like to wash dishes, bust tables, and mop floors, but those are jobs that need to be done. Employers always have trouble finding regular employees to do that kind of work, which is also usually low paying. Americans are not willing to work them whereas the illegal immigrants are. When businesses have trouble filling positions of low skill jobs they only have two choices, raise the wage rate high enough to fill jobs or eliminate positions (Gheen par. 14). Businesses must then raise the prices of their items to make up the difference. Higher prices that the customers of those businesses will end up paying for. Illegal immigration also improves the overall image of America. No other country in the world has the diversity of races,

The article, “Displaced People: NAFTA’s Most Important Product”, written by David Bacon for North American Congress on Latin America, discusses how economic crises have caused Mexicans to be displaced. The North American Free Trade Agreement (NAFTA) has caused the price of crops in Mexico to lower so much that there are no economic benefits from planting them. There are around 500,000 indigenous Mexicans from the state of Oaxaca now living in the United States as farmworkers. The article states that between 2000 and 2005, the countryside in Mexico has lost a million and a half jobs. This causes indigenous Mexicans who relied on planting crops to make money to migrate to the United States. Families that cannot migrate to the United States and are now jobless will go hungry as they search for buyers to buy the crops they grow. While the crops they grow continue to lose money value, the price of the food that they need to survive keeps increasing. After Mexico adopted NAFTA, the price of tortillas has more than doubled and companies continue to monopolize tortilla production. Poor Mexicans are left with no ability to make money and

As a major contributor to the global economy, Mexico’s sweatshops have contributed to the United States’ wealth and economic growth. It is the unfortunate truth that many individual workers have suffered as a result of this prosperity. The sweatshops, known as maquiladoras, are in debate because of the ethical and lawful reasoning behind their existence and conditions. How can we, as a First-world nation, allow such industries to exist where people are denied basic and fundamental human rights? What, if any, laws and regulations are put into place for the maquiladoras? Are these laws and regulations hindering, harmful, or helpful? Are they enforced emphatically? If not, how does this affect development? After

are not equal to the value of their labors. Their wages are kept down to the subsistent level in order to maintain profits for the capitalists.

This expansion of low cost labor pool assisted in increase money circulation. As mentioned in the article, “Should Labor Unions support an Immigration Amnesty?” The Comprehensive Immigration Reform Act of 2007, this legislation states that for the first time in 40 years, deviate from the long-held Americans have earned a middle class life style and Congress should be working to protect it not take it away. From an economic viewpoint many of these low paying jobs have also had to deal with being exploited and forced to work under harmful conditions. Although illegal immigrants are exploited in many ways, American citizens feel that illegal immigrants are the primary cause for the high rise in unemployment in the United States. However, many of our hard paying labor workers do not have to live in our country to compete with our citizens. Today many our jobs are being performed internationally in many countries. Also with many of our citizens struggling with their small business low paying, illegal immigrants are very beneficial to the economy. Illegal immigrants are well known for their low pay and hard work that they offer. Many of these illegal immigrants are willing to take jobs that many of our citizens would not consider working for. On the other hand not allowing for illegal immigrants to work, would not resolve the economic struggle of unemployment.