The only way to get out of debt is to double down
I spoke with Yahoo Finance last week about conditions driving citizens of the Northern Triangle to flee for the safety of the United States. I started off by saying that every person or family fleeing the region does so based upon their unique experiences. More people are leaving the region this year compared to last year but it's not all that clear that there are many more people than year's prior would suggest.
In general, however, people are coming to the United States to escape violence committed by gangs, organized crime, drug trafficking organizations, the State, and domestic partners. They are fleeing dire economic situations made worse by natural disasters and climate change. They are fleeing to reunify with family members in the United States. They are leaving because they have given up hope that things will for the better in their home countries.
What the media has yet to dig into, however, is debt migration. Most of the people trying to get to the United States have to take out loans of $7,000 - $10,000. Banks do not hand out such loans. Therefore they need to take out loans from others in the community who will. Houses and property are often put up as collateral for the loans. They'll then contract with a coyote who will promise to bring them across the border or to some location in the United States. They might get a second or third chance included in the package deal just in case they fail to make it the first time.
If the migrant does not reach the U.S. and he or she gives up, the migrant probably won't be on the hook for the entire sum of money. However, it's not easy to pay off $3,000 - $5,000 while living in poverty in El Salvador, Honduras, or Guatemala.
If the migrant gets to the United States but is detained and deported before paying off the entirety of his or her smuggling debt, that person is still responsible for the outstanding amount. Again, depending upon what is still owed, it's difficult to pay off the thousands that remain.
Finally, let's say a migrant pays to go to the United States but is then picked up by Border Patrol and now is going to spend six-to-twelve months in detention, it's not clear that the clock on the loan will be suspended. The family remaining in Central America will have to find a way to make installments on the loan while the migrant family member is in detention. The best way to do that is to take out another loan and send another family member on the journey to the United States. Either that, or they could surrender their home or property. It's not great but the choices of paying back the money owed is limited. Give up your home or property. Double down and send another family member north. Or do the only other thing that pays - crime.
It's really rough if migration to the United States is cut off for Central Americans in all sorts of ways
Okay. Most of that didn't make it into the article but I thought that I'd get it out there.
Richard Johnson and Murphy Woodhouse have a really good take on this process in a recent article with "Securing the Return: How Enhanced US Border Enforcement Fuels Cycles of Debt Migration" for Antipode.
In general, however, people are coming to the United States to escape violence committed by gangs, organized crime, drug trafficking organizations, the State, and domestic partners. They are fleeing dire economic situations made worse by natural disasters and climate change. They are fleeing to reunify with family members in the United States. They are leaving because they have given up hope that things will for the better in their home countries.
What the media has yet to dig into, however, is debt migration. Most of the people trying to get to the United States have to take out loans of $7,000 - $10,000. Banks do not hand out such loans. Therefore they need to take out loans from others in the community who will. Houses and property are often put up as collateral for the loans. They'll then contract with a coyote who will promise to bring them across the border or to some location in the United States. They might get a second or third chance included in the package deal just in case they fail to make it the first time.
If the migrant does not reach the U.S. and he or she gives up, the migrant probably won't be on the hook for the entire sum of money. However, it's not easy to pay off $3,000 - $5,000 while living in poverty in El Salvador, Honduras, or Guatemala.
If the migrant gets to the United States but is detained and deported before paying off the entirety of his or her smuggling debt, that person is still responsible for the outstanding amount. Again, depending upon what is still owed, it's difficult to pay off the thousands that remain.
Finally, let's say a migrant pays to go to the United States but is then picked up by Border Patrol and now is going to spend six-to-twelve months in detention, it's not clear that the clock on the loan will be suspended. The family remaining in Central America will have to find a way to make installments on the loan while the migrant family member is in detention. The best way to do that is to take out another loan and send another family member on the journey to the United States. Either that, or they could surrender their home or property. It's not great but the choices of paying back the money owed is limited. Give up your home or property. Double down and send another family member north. Or do the only other thing that pays - crime.
It's really rough if migration to the United States is cut off for Central Americans in all sorts of ways
Okay. Most of that didn't make it into the article but I thought that I'd get it out there.
Richard Johnson and Murphy Woodhouse have a really good take on this process in a recent article with "Securing the Return: How Enhanced US Border Enforcement Fuels Cycles of Debt Migration" for Antipode.
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