El Norte, a.k.a The United States, has been the promised land for citizens of Mexico. Families regularly pool their resources and support their children's attempts to succeed in the U.S. In return, the children have sent part of their income back to Mexico in order to supplement their parents' income. These transfer payments have been a lucrative business for Western Union (WU), as I have mentioned in a prior post on First Data (FDC).
Monday's NYT has a fascinating article discussing signs of a reversal in payments. As the U.S. economic crisis increases unemployment, the U.S.-based children not only can't send funds back to Mexico, but the families are now sending funds to support children living in the U.S. This reversal is astonishing given the disparaties in economies and cost structures. Having taken the steps towards a U.S.-based future, these families are now increasing their commitment to the U.S.
