Buy Mexico?

Yesterday’s blog looked at the forecast problems of food and borders.  Specifically food inflation and how people will cross borders into different countries to obtain food security.

Tangentially, it also suggested that migrants from the USA could well be on the cards, given its rising food inflation and also low GDP and tragic unemployment figures.  Although not as bad as Greece and Spain – about which it is difficult to come to any conclusion how those societies will continue under such overhanging despair.

Then to this story, about illegal Mexican migrants returning from the USA to their home because the opportunities are greater in Mexico than the USA.  It reports that there were 12 million illegals, and over the five years to 2010 that number has fallen to 11 million.  One professor in the article refers to a net zero immigration for the first time since 1960.  Wow!!  And the 1 million is three times higher than the preceeding 5 year period.  There are some lovely stories in the article and worth a read.  Quite a bit about growing their own food as well, once they arrive home.  

However the article is interesting in other ways.  There is extensive research that shows that high immigration – or a high educated population growth – is a long term boost to an economy.  And that is what is happening as people return to Mexico, essentially.  And Mexico’s children per family ratio has also dropped, to just over 2:1 from 7:1.  This usually happens when you educate women research shows.  Per capita income is also higher as a result, as income and wealth rises.  And education is also rising.

All of which means that this is good for the economy.  And possibly good for long term investment.

And maybe I was wrong yesterday, when suggesting that Americans may be turning up in France!!  Maybe it is Mexico.