Poor workers scrimp, send money home

[one...two...tree 2,762]

Daniel González

The Arizona Republic

The immigrants who send money home to family in Latin America are a frugal lot.

Take Martin Armenta, for example. The Phoenix resident takes home $380 a week after taxes from his job as a cook. Yet he sends more than a third of his paycheck to his wife and two children in Sonora.

How does he do it? With some serious scrimping. Armenta, 31, shares a three-bedroom house with seven other immigrant men, watches TV for entertainment and never goes out to eat.

Latino immigrants such as Armenta will send $45 billion home this year, up from $30 billion in 2004. Yet they tend to be poor by American standards, with the majority earning less than $30,000 a year, according to a survey by the Inter-American Development Bank.

The survey sheds light on the explosive growth of remittances and the role they play in alleviating poverty, influencing migration and shaping economic policies in developing countries. It also underscores the tremendous potential remittances hold for fostering economic development in the U.S. and abroad.

Experts have known for years that immigrants send wads of cash to relatives back home. But the Inter-American Development Bank study found that the average amount sent per month has climbed to $300, up from $240 in 2004, even though the average sender earns only $900 a month.

"They are hard-working people trying hard to improve their families' lives, hardly the people anti-immigrants groups describe . . . as people who cross the border to take advantage of this country," said Rodolfo de la Garza, a political science professor at Columbia University who has studied remittance behavior.

Remittances as baseline

Remittances help alleviate poverty in poor countries like Mexico, which receives about halfof the $45 billion Latino immigrants send home. But the money also absolves governments in developing nations from investing in the poor, "and that's really criminal," de la Garza said.

Some experts believe remittances help slow illegal immigration to the U.S., by providing family members with enough money to pay for food, clothing and other necessities.

"It reduces some pressure for migration," said Louis DiSipio, political science professor at the University of California-Irvine.

Others, however, say remittances may actually accelerate illegal immigration by financing trips north. What's more, every dollar sent to Mexico or somewhere else in Latin America is one less dollar spent in U.S. communities, where the economic loss is felt most in places with fast-growing immigrant populations like Phoenix.

About one in 7 Mexican workers, or about 14 percent of Mexico's workforce, lives in the U.S., according to the Migration Policy Institute, a research center in Washington, D.C. The challenge ahead, experts say, is harnessing the untapped economic development potential of remittances in ways that could benefit both sides of the border.

The key to creating jobs and other forms of economic development in Mexico and Latin American countries will be using remittances to finance micro-loans and mortgages. Those types of banking tools are currently unavailable to most poor people in Latin America, said Sergio Bendixen,a Miami-based pollster who surveyed 2,511 Latino immigrants for a study of remittances commissioned by the Inter-American Development Bank.

Communities in the U.S. also stand to benefit from remittances by creating co-ops that encourage immigrants to invest money here instead of sending it home, de la Garza said.

Sending more home

The Inter-American Development Bank survey found that between 2004 and 2006, the percentage of immigrants sending money regularly increased from 61 to 73 percent.

Still, the majority of immigrants who send money home earn wages considered working-poor or lower-middle-class by U.S. standards. About three-fifths earn less than $30,000 a year. A third earn less than $20,000, according to the survey, which was released in October.

About half of Latino immigrants find a job within a month of arriving in the U.S., the survey said. The first jobs they find tend to pay low, about $900 a month. But on average that is six times the amount they were earning in their home country.

Frugal lifestyle

Armenta was luckier than most. He landed a job cooking barbacoa, carnitas and other Mexican food at a carnicería just a week after arriving in Phoenix in September.

The undocumented immigrant said he walked for two days through the desert after crossing the border illegally near Douglas. Before coming to Phoenix, he was earning about $170 a week in construction in Mexico but had recently lost his job.

In Mexico, incomes vary widely, but government information suggests that the vast majority of Mexican workers makes less than $21 a day.

Armenta said he sends money home to his wife and two children, ages 9and 3, every week to help them buy food, clothing and medicine. The family owns its home in Ciudad Obregón, the second-largest city in Sonora.

He pulled out several receipts wadded up in his pocket. One, dated Oct. 2, was for $160. Another, dated Oct. 9, was for $130. A third, dated Oct. 16, was for $160.

"How much I send depends on what my expenses are that week," said Armenta, sliding a pot of water over a gas burner.

His biggest expense is a $150-a-week car payment for the 1990 Ford pickup truck he bought shortly after arriving in Phoenix. The remainder of his $380 weekly paycheck goes to pay for auto insurance, gasoline, rent and food. Armenta's monthly share of the rent, split eight ways, is about $230, including utilities. The only furniture in the house he rents is a sofa and a few chairs. For entertainment, Armenta watches TV. He doesn't have cable. He also doesn't have a bed. He said he sleeps on the floor.

Armenta said he never goes out to eat.

"It's cheaper to cook at home," he said.

[mawilson 2,133]

Make it impossible to send money home (without ID and such) and they'll have to spend it here.

[Hilarious Clinton 452]

Make it impossible to send money home (without ID and such) and they'll have to spend it here.

You don't need ID for western union (so I've read). Just a question/answer the receiver can answer.

[pedroh 21]

Make it impossible to send money home (without ID and such) and they'll have to spend it here.

You don't need ID for western union (so I've read). Just a question/answer the receiver can answer.

yea it's a ######!n pain in the #######.. i don't use cash, so its pain to go to the atm and send cash for like my brother's B-day.. so i do it online, where they process ur app, and then u have to call and they ask all your info, where's that tattoo u have, why are u sending the money (oh, probably to support illegal causes, LAWL), and le fin...

if u go to the grocery store they dont ask jack..

patriot act ftl

[Jasman0717 9]

My wife is doing her duty in sending money to her family, she sent a very large amount for Christmas. It is my understanding that the number one export in the Philippines is labor and a lot of the overseas earnings are send back home to family members. I have talked to several Filipinos living in Japan, China and Korea. They don't make all that much money and, as much as possible, they will send home. The ones I talked to are working 10 or 12 hour days and living in company quarters.

I am very thankful for what I have, especially at this time of year.

[one...two...tree 2,762]

My wife is doing her duty in sending money to her family, she sent a very large amount for Christmas. It is my understanding that the number one export in the Philippines is labor and a lot of the overseas earnings are send back home to family members. I have talked to several Filipinos living in Japan, China and Korea. They don't make all that much money and, as much as possible, they will send home. The ones I talked to are working 10 or 12 hour days and living in company quarters.

I am very thankful for what I have, especially at this time of year.

Amen, brother.

[Killer_Clown_2009 0]

It's something to be proud of and a wonderful quality.

[Hilarious Clinton 452]

I wonder how much of that money is from tax evasion?

[pedroh 21]

I wonder how much of that money is from tax evasion?

well if it's from the illegal population, where most of it is 'under the table' or with fake papers, they still get taxed.. well, at least the ones with fake id's get taxed when paid and when sending the money (plus the damn fees, zomg they are expensive).. the under the table i suppose just get the sale tax for the transaction...

despite of the way they get the money, legally or illegaly, i really admire that people that sacrifice their lifestyle to send money to their families...

[Hilarious Clinton 452]

I wonder how much of that money is from tax evasion?

well if it's from the illegal population, where most of it is 'under the table' or with fake papers, they still get taxed.. well, at least the ones with fake id's get taxed when paid and when sending the money (plus the damn fees, zomg they are expensive).. the under the table i suppose just get the sale tax for the transaction...

despite of the way they get the money, legally or illegaly, i really admire that people that sacrifice their lifestyle to send money to their families...

they claim 'married, withholding 9' so it's still tax evasion. Don't kid yourself.

You admire criminals? I'd keep that to yourself.

[MichelleandCraig 1]

I don't admire tax evasion, but I do admire anyone willing to go without themselves to provide for people who have even less. We all know the whole 'illegal immigrant' situation is a bad thing, but I feel so sorry for those people and feel really lucky that I just happened to be born here. (or, like others, in some other financially-secure country...well, that's debatable, but you know what I'm getting at!) M.

[Alex+R 0]

I wonder how much of that money is from tax evasion?

well if it's from the illegal population, where most of it is 'under the table' or with fake papers, they still get taxed.. well, at least the ones with fake id's get taxed when paid and when sending the money (plus the damn fees, zomg they are expensive).. the under the table i suppose just get the sale tax for the transaction...

despite of the way they get the money, legally or illegaly, i really admire that people that sacrifice their lifestyle to send money to their families...

they claim 'married, withholding 9' so it's still tax evasion. Don't kid yourself.

You admire criminals? I'd keep that to yourself.

I find it very interesting that people (like yourself) so quickly decide someone is a "criminal" because they broke a law, and that therefore all their actions are wrong/they are bad people. (At least, this is the best I can make of that bizarre type of logic.)

Kohlberg's Theory of Moral Development:

Levels of Moral Development:

Level 1: preconventional morality

Stage 1: Individual obeys rules in order to avoid punishment.

Stage 2: Individual conforms to society's rules in order to receive rewards.

Level 2: conventional morality

Stage 3: Individual behaves morally in order to gain approval from other people.

Stage 4: Conformity to authority to avoid censure and guilt.

Level 3: postconventional morality

Stage 5: Individual is concerned with individual rights and democratically decided laws.

Stage 6: Individual is entirely guided by his or her own conscience.

[pedroh 21]

I wonder how much of that money is from tax evasion?

well if it's from the illegal population, where most of it is 'under the table' or with fake papers, they still get taxed.. well, at least the ones with fake id's get taxed when paid and when sending the money (plus the damn fees, zomg they are expensive).. the under the table i suppose just get the sale tax for the transaction...

despite of the way they get the money, legally or illegaly, i really admire that people that sacrifice their lifestyle to send money to their families...

they claim 'married, withholding 9' so it's still tax evasion. Don't kid yourself.

You admire criminals? I'd keep that to yourself.

I find it very interesting that people (like yourself) so quickly decide someone is a "criminal" because they broke a law, and that therefore all their actions are wrong/they are bad people. (At least, this is the best I can make of that bizarre type of logic.)

Kohlberg's Theory of Moral Development:

Levels of Moral Development:

Level 1: preconventional morality

Stage 1: Individual obeys rules in order to avoid punishment.

Stage 2: Individual conforms to society's rules in order to receive rewards.

Level 2: conventional morality

Stage 3: Individual behaves morally in order to gain approval from other people.

Stage 4: Conformity to authority to avoid censure and guilt.

Level 3: postconventional morality

Stage 5: Individual is concerned with individual rights and democratically decided laws.

Stage 6: Individual is entirely guided by his or her own conscience.

true.. i think it's still something to think about, how they live like that, crammed in a house, and not going out to eat, all that stuff, to send money home.. the tax evasion issue is something different..

but yea, i guess just because they are illegal they will only do bad stuff, and they deserve to be shot, or robbed, or not get police help

[Alex+R 0]

From my moral standpoint, I evaluate someone who comes to a country to live far from their family, work a completely crappy job (or 3) and not spend any of the profits on him/herself as a hero.

The legality of the whole thing is very separate. They've done what's best for their families at a high risk to their personal wellbeing (especially in cases where they cross the desert or reach America through other dangerous paths). It's real responsibility and love in action. Since so many people who hate illegal immigrants are the same people who say that everyone should take more responsibility, I wonder how they can fail to see these immigrants as basically their ideal American.

I'm not saying that the whole situation is not a problem. I'm saying that writing these people off as "criminals" is frankly ridiculous.

[pedroh 21]

From my moral standpoint, I evaluate someone who comes to a country to live far from their family, work a completely crappy job (or 3) and not spend any of the profits on him/herself as a hero.

The legality of the whole thing is very separate. They've done what's best for their families at a high risk to their personal wellbeing (especially in cases where they cross the desert or reach America through other dangerous paths). It's real responsibility and love in action. Since so many people who hate illegal immigrants are the same people who say that everyone should take more responsibility, I wonder how they can fail to see these immigrants as basically their ideal American.

I'm not saying that the whole situation is not a problem. I'm saying that writing these people off as "criminals" is frankly ridiculous.

but they are criminals! of course they don't work 3 underpaid jobs and live in poor conditions for love of their families! they just want to buy old cars and pimp them out, and live like kings, because thats the illegal life! the bling bling! yeaaaa

lawl