Things That Matter

As People Lose Their Jobs, They’re Not Sending Money To Their Families Back Home And It’s Having A Major Impact On Local Communities

As the coronavirus continues its march around the world, economies from Brazil and Mexico to the United States and Colombia have been hit hard. The measures taken by governments to save lives have stalled economies, and are in the process of delivering a global recession. Economic contagion is now spreading as fast as the disease itself.

You don’t have to look any further than the unemployment numbers recorded each week in the United States. They’re at staggering, record-breaking levels. This huge impact on the U.S. economy, and its workers, is having an outsized impact on economies across Latin America as migrants aren’t able to send remittances back home to their families.

As the economic repercussions of the pandemic continue to grow, global remittances from migrants are being hit hard.

The pandemic is hitting jobs and wages in a variety of sectors of the global economy – including economies (like the U.S.) that depend on migrants. A global economic turndown will mean a slowdown in the amount of money these workers send back home to their families and will be crucial in spreading the economic contagion from richer countries to poorer ones.

For 2020, the International Monetary Fund is now predicting that the global economy will shrink by 3% – that’s a difference of trillions of dollars – and it will have trickle down effects on the world’s most vulnerable people.

Undocumented communities are especially vulnerable during economic downturns.

Credit: EqualityNYC / Instagram

Many of those who send remittances often work in the service industry and have been let go or furloughed from their jobs in hotels, restaurants or cleaning companies, without pay. Meanwhile, those who are undocumented cannot apply for unemployment, even though they likely contributed to state unemployment funds and paid taxes.

Even the recent federal stimulus bill – a $2 trillion dollar bill meant to dampen the impact of the Coronavirus pandemic – specifically left out undocumented migrants. It prevents even tax-paying migrants from receiving any federal aid. However, California has partnered with non-profits to become the first state to offer $500 in assistance to undocumented residents.

Remittances are crucial to the economies of poorer countries and help support millions of families.

Credit: @BancomerMX / Twitter

Remittances shelter a large number of poor and vulnerable households, underpinning the survival strategies of over 1 billion people. In 2019, an estimated 200 million people in the global migrant workforce sent home US$715 billion. Of this, it’s estimated US$551 billion supported up to 800 million households living in low- and middle-income countries.

And these families aren’t spending this money on cars and new computers. They’re spending it on everyday subsistence needs including food, medicines, and education. The World Bank projects that within five years, remittances will outstrip overseas aid and foreign direct investment combined, reflecting the extent to which global financial flows have been reshaped by migration.

In fact, global remittances hit record highs in 2018.

Credit: Pixabay

According to the World Bank, global remittances reached a record high in 2018, the last year for which figures are available. The flow of money to Latin America and the Caribbean grew by 10 percent to $88 billion in 2018, mostly due to the strong U.S. economy, where most of the money originates.

In many countries, remittances account for a significant portion of their gross domestic product. In Nicaragua and Guatemala they account for around 12 percent, and in El Salvador and Honduras, around 20 percent.

Mexico’s president, Andrés Manuel López Obrador, asked Mexicans in the United States not to stop supporting their relatives back home. He said February set a record in remittances to Mexico.

“Tell your countrymen to not stop sending help to their families in Mexico, who are also going through a difficult situation,” he said at a recent news conference.

Many migrants to the U.S. feel a strong responsibility to send back as much as they can to help their families back home.

Credit: @FamiliesBelongTogether / Twitter

Many immigrants to the U.S. are worried about not being able to send money to their parents, children, or abuelos back home. Many relatives depend on those who have emigrated to the U.S. to pay for electricity, food, medicine, and doctor’s visits. But with many losing their own jobs – money is just too tight for many.

In an interview with NBC News, Lesbia Granados – from Honduras – said what many can relate to, “I am everything to my parents, and it’s my responsibility to take care of them, after they did so much for me.”

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These Were The Moments That Defined Latin America In 2020 That Weren’t About COVID-19

Things That Matter

These Were The Moments That Defined Latin America In 2020 That Weren’t About COVID-19

PEDRO PARDO/AFP via Getty Images

2020 will easily go down in manny of our memories as the year that just wouldn’t stop. As the year started, it all seemed to be sort of fine as the world came together to battle record-breaking Australian bushfires and worked to hopefully contain an outbreak of a strange new virus in China.

However, as the year comes to a close things have gone de mal a peor for the world in general, but for the Latino population in the United States and Latin America as a region in particular. Though it’s hard to realize just how much we all witnessed and experienced since so much of what happened seems like it was a lifetime ago.

Here’s a look back at some the defining moments from 2020 across Latin America.

Jennifer Lopez and Shakira kicked off the year hopeful with a history-making performance at the Super Bowl.

Yes, believe it or not, this happened in 2020. The pair put on what many have called the best half time show in Super Bowl history. They were also joined by J Balvin and Bad Bunny.

Bolivia’s Evo Morales was forced into exile, only to return to the country in November.

After being forced into exile at the end of 2019 for attempting to illegally run in upcoming presidential elections, Morales spent a year abroad – first in Mexico and then in Argentina.

Mexico’s President AMLO made his first trip abroad to visit Donald Trump at the White House.

Mexico’s President Andres Manuel Lopez Obrador is a staunch populist and has long said his primary focus is domestic policy within Mexico. Therefore, despite two years in office, AMLO hadn’t left Mexico once. So it came as a surprise when his first trip abroad was a visit to the U.S. leader who had long disparaged Mexico, the government, and Mexicans – not to mention his trip came in the middle of a global pandemic.

Migrant caravans continued to make their way towards the U.S. despite interference from Mexico and Covid-19.

Migrants attempting to make their way to the U.S. isn’t unique to 2020. For decades, migrants have long banded together for safety in numbers along the treacherous journey to the north. However, they became larger and better organized in 2020, perhaps owing to the new dangers of Mexican interference.

Mexico’s AMLO vowed to stop migrants from reaching the U.S.-Mexico border, adhering to Trump’s request. It was also noteworthy because the caravans continued despite the Covid-19 crisis, which has hit the region particularly hard.

Peru saw three presidents in the span of a few weeks after massive protests.

Peru is facing one of the greatest crises the nation has faced. Just as the country seemed to be emerging from the worst of its battle against the Covid-19 pandemic, the country has entered a severe political crisis.

The country’s elected president, Martin Vizcarra, was impeached and removed from office. His predecessor responded with a heavy hand to the protests that ensued resulting in his resignation less than 24 hours later. The government then had to find someone willing to take the job which proved to be a tough sell.

In fact, massive protests swept across Latin America.

From Mexico in the north to Cuba in the Caribbean and Chile in the south, protests were seen all across the region. Although each movement had it’s own stated goal and objectives, many were largely borne out of the same purpose: to fight back against corruption.

Brazil’s President Jaír Bolsonaro tested positive for Covid-19 but it did nothing to change his approach to the pandemic.

Jaír Bolsonaro has long been compared to Donald Trump, with many calling him the Donald Trump of South America. The two were also strongly aligned in their responses to the Coronavirus pandemic, with the pair largely downplaying the severity of the crisis.

Then, Bolsonaro became infected with the virus and many hoped it would change his view on the crisis. It didn’t.

A growing feminist movement developed in Mexico, demanding protection from a shocking rise in violence against women.

Mexico has long been battling endemic violence and the country has continued to see record-setting rates of homicides. But it was the growing rate of violence against women, particularly femicide, that gained national attention.

Women banded together and started large nationwide protests. Over the summer, women in the capital of Mexico City occupied government buildings and destroyed many of the city’s most popular monuments to hopefully get their message across. Although the movement has gained more recognition by Mexicans, the government has still failed to address their concerns. Let’s hope things are different in 2021.

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Just After Congress Approves $600 Stimulus Checks, Trump Threatens To Veto The Bill

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Just After Congress Approves $600 Stimulus Checks, Trump Threatens To Veto The Bill

Pixabay

Updated: December 23, 2020

Just days after the U.S. Congress approved legislation that would send millions of Americans much-needed stimulus checks – even though they were only $600 – Donald Trump has thrown the entire plan into chaos.

Donald Trump threatens to veto historic spending bill.

Trump is holding a veto threat over recently passed, bipartisan legislation that was aimed at stimulating a suffering economy. Trump says that he wants lawmakers to boost the $600 direct payments to checks for $2,000 but his own party is basically united against increasing the size of checks.

Many point out that Trump is simply holding up the legislation, not for the stimulus checks, but because he objects to other parts of the law. Within the spending package, lawmakers on both sides of the aisle approved spending for arts and cultural programs as well as aide to developing countries across the world.

Original Story Published: December 18, 2020

So it looks like millions of Americans may end up getting that long overdue second stimulus check after all. So long as Congress doesn’t screw things up again.

As part of the latest round of negotiation between Democrats and Republicans, it looks a like a proposal for $600 direct payments is back on the table. However, $600 is literally half of the amount that was sent out to millions of Americans back in April and May.

A new stimulus package could include direct payments to millions of Americans.

Congressional leaders are considering a new deal to help stimulate the economy which has been battered by the Coronavirus pandemic. And although it appeared, as recently as last week, that a second stimulus check was off the table, that seems to have changed.

The new deal under consideration included new stimulus checks and enhanced federal unemployment benefits, according to reports by Politico. Even President Trump said in a TV interview over the weekend that he wants stimulus checks in the deal, saying he wants to “see checks—for more money than they’re talking about—going to people.”

Millions of workers aren’t getting any help from the largest emergency aid deal in US history.

The bill, known as the CARES Act, delivers direct payments to most taxpayers, vastly expands unemployment benefits, and makes testing for the virus free, among other provisions.

But although unauthorized immigrants are no more immune from the effects of the current crisis, the stimulus bill conspicuously leaves them out in the cold — potentially putting them at greater economic and health risk, and impeding public health efforts to stop the spread of coronavirus.

There are an estimated 10.7 million undocumented immigrants in the USA who are ineligible for emergency federal benefits or state unemployment insurance because they don’t have valid work authorization. 

That’s left an extra layer of anxiety for immigrants without legal status who have lost their jobs or seen work hours reduced amid the statewide shutdown of “nonessential” businesses. Many turned to local organizations for help to put food on the table and pay other expenses. 

Undocumented residents are already at greater risk of being affected by Covid-19 because of inadequate resources and access to health care.

The unauthorized worker population is particularly vulnerable to the virus due to inadequate access to health care. Noncitizens are significantly more likely to be uninsured compared to US citizens, which may dissuade them from seeking medical care if they contract the virus.

Compounding matters are the Trump administration’s hardline immigration policies — including wide-scale immigration raids and a rule that can penalize green card applicants for using Medicaid — which have made noncitizens afraid to access care. These factors pose a problem for America’s efforts to slow the spread of the virus, which has killed more than 12,000 in the US as of April 7.

Where the government is failing, advocates and organizations are stepping up to help.

Some immigrant advocates lobby for the undocumented to be included by allowing payments to those who file taxes using individual tax identification numbers, which are often used by workers without legal immigration status. 

“They should include at least the individual taxpayers,” said Diana Mejia, founder of the Wind of the Spirit, an organization that helps immigrants in New Jersey’s Morris County.  “They are paying taxes,” she added in an interview with CNN.

Filers who use ITINs contribute about $11.74 billion in state and local taxes each year, according to the Institute on Taxation and Economic Policy, a Washington think tank.

Aside from millions of undocumented migrants, millions of others are also being left out of the stimulus:

Credit: Department of Treasury

College Students and 17-Year-Olds: If someone else claims you as a dependent on their taxes, you won’t get your own check. Parents will get an extra $500 payment per child, but that’s only for kids under 17.

Most 17-year-olds, some young adults and many of the country’s roughly 20 million college students are claimed by their parents as dependents. They won’t get checks, and their parents won’t get an extra $500.

Disabled People: People who get disability benefits from the Social Security Administration or Veterans Affairs are eligible for the payments — but not disabled adults who are claimed as dependents by their parents or other relatives on their taxes

Seniors Who Live With Family: Senior citizens who are on Social Security or make less than the income cap are eligible. But the “dependent” rule applies to them, too. Some seniors who live with their adult children or other relatives are claimed by them as dependents on their taxes. Those seniors won’t get checks.

Immigrants are eligible for some free testing.

Credit: Pixabay

Here’s one thing the bill does offer to unauthorized immigrants: free coronavirus testing at government-funded community health centers through a $1 billion federal program. But some community health centers have already reported shortages of tests.

There is also a larger, state-level testing program funded through Medicaid, but that’s only available to Medicaid-eligible immigrants — green card holders who have lived in the US for at least five years, immigrants who come to the US on humanitarian grounds such as asylum, members of the military and their families, and, in certain states, children and pregnant women with lawful immigration status. Those groups, however, make up only a small proportion of immigrants living in the US. 

US Citizenship and Immigration Services has announced that it won’t consider use of free testing services when evaluating whether immigrants will likely end up relying on public benefits under the “public charge” rule, which went into effect in February

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