Sensationalist media reports, which bring more heat than light, distract us from an important yet oft-ignored truth: Latin America has profound, self-created problems.
When Latin-American migrants travel from Central America to the United States, they cross not only thousands of kilometers, but civilizations and generations of cultural and economic development. You name an issue, and the region suffers from it: crime, corruption, authoritarianism, pollution, murder, and poverty.
The most obvious is economic deprivation, thanks to centuries of state intervention in free markets and the curse of a low-trust society. If one focuses on the migrants arriving via land at the U.S. border—from Nicaragua and the Northern Triangle of El Salvador, Guatemala, and Honduras—about half of their economic activity is informal, and you'll be counting your blessings if you make more than $500 per month. Over $1,000 per month puts you comfortably with the professional elites.
In other words, those coming to the United States can easily quadruple their earnings. (The ratio is even worse for Cuba and Venezuela.) No wonder about 10 percent of the Northern Triangle’s earnings are simply remittances back from the United States—16 percent in both El Salvador and Honduras.
Voting With Their Feet
Deep down, Latinos know the truth. Why else would rich and poor alike be so eager to flee, continuing through or overlooking Mexico, often at great expense and risk to their lives? Voting with one’s feet and leaving is the strongest rejection one can make of a nation and her ruling class.Even Latin America’s most noted liberator and hero, Simón Bolívar, was preparing for an exit to France at the time of his death in 1830. He foresaw “a mob gone wild ,,, under the domination of obscure, small tyrants.”
However, the wave of émigrés—attracted to the clarion call of economic optimism in the United States—should compel self-reflection throughout the region, particularly in Central America. Excuses and scapegoating, such as that directed at U.S. President Donald Trump, will do nothing to reverse the long-term abandonment. Attacks against him and capitalism, which fly in the face of where the émigrés actually prefer to live, also incline Central Americans to bring their problems with them to the United States.
The same goes for foreign-aid dependence. As the great Nobel Laureate economist Gary Becker observed, no nation has gotten rich on account of foreign aid. Only a healthy private sector can bring long-term capital accumulation and wealth, and Latin-American nations must reject and wean themselves off foreign aid.
The hanging question, however, is whether Latinos of Central America and Mexico are willing to embrace modernity with markets and social liberalization. “Here there is no respect for life, liberty, property, nor equality before the law,” writes Figueroa. Until that changes, Latinos will continue to prefer a better life in the United States.
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