Immigration has been a hot topic for both the Republican and Democratic candidates. Donald Trump has brought much attention to the issue due to his belief that the Mexican government should pay for a wall on the United States-Mexican border. I was reading an interesting USA Today article that said “more Mexican immigrants are returning to their home country than coming to the United States.” The report was from the Pew Research Center and said that one of the primary reasons for the net loss was because of the economy.
As I have mentioned previously, real median income in the United States has declined since 2000, while the CPI has increased by over 30%. This is anecdotal, it just seems that the opportunities in America are on the decline, and the opportunities are not what they once were. I have currently been looking for a job and have been having a lot of difficulty. I have worked for big companies like Visa and Verizon Wireless in the past. I have applied for well over a 100 positions and have only received one job offer. The only company that offered me a job was Macy’s working for $9.00 an hour. I was qualified to work all of the positions as well.
The per capita income in Mexico is less than in the United States. It seems as though this report may indicate that many Mexicans believe there is more economic opportunity in Mexico. I was recently in Guadalajara, which is the second largest city in Mexico. It was a great city to visit, and I highly recommend that people visit there if they get a chance. Almost every day I ate really good street tacos which cost 30 pesos for 4 tacos. You can barely purchase a dr pepper from a convenience store for that in the United States. I stayed at a nice hotel and it cost me $45 dollars a night. Los Angeles is the second largest city in the United States, good luck finding a nice hotel in Los Angeles for $45 dollars. I have heard that you can rent a two bedroom home in Guadalajara for $250.
When I was down there I was thinking of ways to implement geo arbitrage, which is what I believe Tim Ferris calls it. Find a way to run some kind of online business, or work from Skype somehow, while taking advantage of the low cost of living in Guadalajara. Guadalajara is just an example, there are so many other places where geo arbitrage could be implemented. Due to what I perceive as the declining economic opportunity in America, it is likely more Americans will try implementing the geo arbitrage strategy.