Poor economy leaves immigrants with less to send home

from the San Bernardino Sun

by Stephen Wall,

Sergio Espinoza worries about his mom's future.

When the economy was strong, the 36-year-old Mexican immigrant used to send $300 or $400 a month to his mom and other relatives in his hometown.

With the United States teetering on the brink of financial collapse, the cash flow heading south of the border has dried up.

"I haven't sent any money home for three months. Not one penny," said Espinoza.

Espinoza said his widowed mom, Maria de la Cruz, survives on dollars he wires from the United States. She lives in Jacona, a city of 53,000 people in the western state of Michoacan.

Lately, Espinoza has been able to find work only two or three times a week. If he's lucky, he'll earn $60 or $70 a day.

"The situation is bad here," Espinoza said in Spanish, "and my mom is very poor back home."

Espinoza is among the millions of immigrants who help keep their home countries afloat with their money transfers known as remittances.

After years of record gains, remittances to Mexico plunged to historic lows this summer, according to the Bank of Mexico.

The bank said remittances in August fell 12 percent to $1.9 billion. That compares to $2.2 billion in August 2007.

Migrants living in this country have sent home $15.5 billion so far this year, 4 percent less than the same period the year before.

In 2007, Mexico received about $24 billion in remittances from the United States. Remittances are Mexico's second-largest source of foreign income, after oil exports.

The Bank of Mexico said remittances are likely to continue dropping in coming months because of the "difficult problems the U.S. economy faces."

Recent U.S. Census data shows higher unemployment rates among Latinos, who make up the majority of immigrant workers in the country.

"Because of the economic crisis, it's obviously becoming harder to find work," said Federico Bass, director of political affairs at the Mexican Consulate in San Bernardino. "If there is less work, there's not as much money to send to your family members."

But Bass said Mexicans aren't left to fend for themselves in times of great need.

"The federal government in Mexico has social programs to help people who are receiving less money from remittances to continue satisfying their essential needs and prevent them from falling into a situation of desperation," Bass said in Spanish.

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