The Mexican President Enrique Peña Nieto just cut off diplomatic relations with the United States. He will never be taken seriously after killing US-Mexican relations. Refusing to even talk eliminates the possibility of a mutually beneficial solution . . . which Trump was of course "negotiating". Nieto is so worried about public opinion he would rather let his countries currency and economy collapse rather than let mexican companies help build Trumps wall!
That being said . . .
A wall will not end the crisis. What are the issues? First, the purpose of the wall is to stop the drug trade. It will put a dent into it, but it will not eradicate it. Second, is the immigration portion of the discussion. There are many people along the border who want to stop the illegal immigration because they bring in kids who then go to school and cause taxes to rise yet these people do not pay income taxes.
If it is really just about illegal immigration, then you can deal with that financially as the solution is very simple:
This entire situation revolves around a punitive United States tax code. It soars during Democrat control and declines during Republican control. Companies cannot construct a business plan because the tax swings are insane. Would you rent an apartment with a lease that said the landlord can raise your rent anytime he want on a whim? You cannot build a plant and then draft a business plan for 20 years when taxes can change at any time.
The ONLY way to create economic stability is to
Until that is accomplished, we will always look for band-aids to keep the game going between elections.
Here is an example of how the market-based visa system and the consumption based tax system could work and their benefits.
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Livio S. Nespoli has been a broker, registered investment advisor, and financial publisher since 1985.