It was revealed in an interview with many illegal immigrants lounging on a Chicago playground that Venezuelans confess to sending the majority of their money back to Venezuela to support their relatives rather than using it in the United States.
A “remittance” is the act of sending U.S. funds to the nation of origin of an immigrant. The yearly outbound U.S. exports amount to billions of dollars. According to Heritage.org’s estimations, illegal and legitimate immigrants alike contributed $52 billion abroad in 2011. And things have only escalated.
According to a report, our lenient immigration rules and remittance regulations are directly responsible for the yearly outflow of billions of dollars from our economy. Immigrants, whether they be legal permanent residents, naturalized citizens, or illegal aliens, are the primary payers of remittances.
An important but under-discussed aspect of this border problem is the urge to send money home. The United States has a serious issue with remittances since these funds are being transferred from the country’s economy to foreign ones. A recent estimate put the annual economic loss to the United States at $150 billion in 2019 due to people sending money abroad to their home nations. President Joe Biden’s decision to open the borders has only served to increase that figure.
It is a transfer of wealth from the American economy to another country’s economy when people send money they’ve made in the US to family, friends, or business partners elsewhere.
After taking office, Donald Trump sought to further restrict the ability of foreign nationals to send money home, a policy that George W. Bush had liberalized.
Heritage reported that Bush established the “Directo a Mexico” scheme in 2006 to facilitate the transfer of U.S. funds to foreign countries such as Mexico by illegal immigrants. After Trump limited several of these remittance methods, Joe Biden took office and undid some of Trump’s limitations, allowing illegal immigrants to transfer funds out of the country once again.