MEXICO CITY, MEXICO / ACCESSWIRE / March 19, 2019 / The latest proposed extension to the border wall between Mexico and the United States has proved a divisive issue, recently resulting in a record 35 days of government shutdown that ended on January 25, 2019. While the subject was initially treated predominantly from a political perspective, a growing number of media and research reports are starting to focus on the economic implications of the structure, with the consensus opinion pointing to a lack of any tangible benefits that justify the cost. These include a negligible effect on migration, as established in studies evaluating the impact of the barriers that already stretch across roughly 700 miles. Economists, think-tanks, and academic establishments have run the numbers on the potential extension, independently reaching the conclusion that it is not an investment with acceptable returns, comments forex expert Pablo Soria de Lachica.
Precise estimates are hard to make, not least because the cost of the proposed wall expansion is uncertain, with projections varying wildly and going as high as nearly $60 billion. In efforts to model the impact of the extension, researchers have started with examining the effect of the existing barriers. One influential report was published in November 2018 and presented an analysis spearheaded by economists from Dartmouth College and Stanford University. The team evaluated the consequences of the extension built between 2007 and 2010 following the Secure Fence Act of 2006. As the paper notes, "Despite construction costs of the wall of $2.3 billion or approximately $7 per person in the U.S., the study found that the border wall expansion harmed college-educated U.S. workers by $4.35 per person in annual income and only benefited less educated U.S. workers by an average of 36 cents." Moreover, the barrier reduced the number of Mexican migrants by a mere 0.6%.
Using sophisticated modeling and confidential data on migration provided by the Mexican government, the Dartmouth-Stanford team also assessed the impact of the border wall extension proposed by the current U.S. government. As Pablo Soria de Lachica points out, the resulting numbers show an adverse overall effect on the U.S. economy, as was the case with past structures. According to the analysis, every 19 cents spent so far on border walls or fences has curtailed economic growth, and low-income U.S. workers - the only group to derive some benefit - have added just one cent to their income. Assuming a $5 billion investment in the new extension, the project would cost each U.S. citizen about $15, and low-skilled workers would see their income increase by merely 58 cents a year while higher-skilled employees would lose $7.60. Every Mexican migrant prevented from entering the United States because of the wall would represent almost $30,000 in lost economic output, which would amount to an annual contraction of over $4 billion for the U.S. economy, the researchers estimate.
Pablo Soria de Lachica, who obtained an MBA from the Universidad Tecnologico de Mexico (UNITEC), specialized in international trading after graduation and succeeded in becoming one of the most prominent forex experts working today. Drawing on his extensive experience, he helps clients maximize profits, providing them with both professional guidance and educational opportunities. Currently, he is collaborating with Kartoshka - a company focused on delivering the latest technologies in sales, telemarketing, and customer support.
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SOURCE: Pablo Soria de Lachica
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