Monday, February 11, 2008

Economic Stimulus?

A ton of U.S. cash is wired to Mexico every day. The electronic transfers are expected to increase, according to Western Union. According to President and Chief Executive Officer Christina Gold (seriously, that's her last name):
I am confident in our 2008 financial plan, which anticipates the international consumer-to-consumer business to remain strong, the Mexico business to have modest growth, and the U.S. domestic and U.S. outbound businesses to be challenged in light of the current economic circumstances in the United States.

This cash, transfered by Western Union and many others, is moving out of our economy and right into Mexico's economy. In large part, it is untaxed, illegal earnings being sent to the poor lower class in Mexico. So what we have, essentially, is a whole nation of "underprivelidged" people being subsidized with "stealth" welfare.

Make cash wire transfers to Mexico illeagal, or at least highly taxed. Those dollars would have to be spent in the U.S., to the benefit of our economy. And they could be taxed dollars, if the Fair Tax were enacted.

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