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March 20, 2008

Remittances to Mexico Drop at a Record Pace

Another sign of significant weakness in the U.S. Hispanic market: in January, remittances to Mexico from the United States fell by the fastest rate, down 5.9%, since the Mexican central bank started tracking such figures in 1985. [Source: Reuters]

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February 13, 2008

Hispanic Chamber of Commerce Being Formed in Brunswick, Georgia

The Hispanic business community in Brunswick, Georgia appears to be mature enough to justify the creation and support of an Hispanic Chamber of Commerce. Read the complete story here.

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February 12, 2008

Arizona's Economy Feels the Effect of Anti-Immigrant Legislation

Like Oklahoma, Arizona is starting to feel the effects of anti-immigrant legislation passed last year. the New York Times reports:

While data for the last month or so are not available, there were already signs of migration out of Arizona at the end of last year. In the fourth quarter of 2007 the apartment-vacancy rate in metropolitan Phoenix rose to 11.2 percent from 9 percent in the same quarter of 2006, with much higher rates of 15 percent or more in heavily Latino neighborhoods.

"You have many people moving out, but they are not all illegal," said Terry Feinberg, president of the Arizona Multihousing Alliance, a trade group for the apartment and rental housing industry. "A lot of people moving are citizens, or legal, but because someone in their family or social network is not, and they are having a hard time keeping or finding a job, they all move."

In the wake of this fallout and continued inaction on immigration reform at the federal level, a group of Arizona legislators have introduced legislation which would create a state-run temporary worker program.

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Hispanic Media Growth Forecasts Positive

That's the view expressed in a new report from SNL Kagan on the Hispanic TV and radio industry:

The four major U.S. Hispanic broadcast networks — Telemundo, Univision, Telefutura, and Azteca America — had estimated combined revenues of $1.3 billion for 2007, with that figure expected to top $1.6 billion in 2011. Combined cash flow could generate greater growth, jumping to $627 million in 2011 from $460 million in 2006.

Hispanic TV stations can expect slower revenue growth at about 5.4% annually through 2011. SNL Kagan expects Hispanic radio revenue to increase 6% in 2008 to $1.21 billion, outpacing the overall industry's expected growth of 2% to 3%. Over the next four years, radio station revenues are expected to grow at a 4.9% CAGR.

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February 3, 2008

Charlotte Small Businesses Meet in the Cultural Middle

The Charlotte Observer reports on the need both Hispanic-owned and Anglo-owned small businesses respectively feel to move beyond their traditional markets:

Pascual Gonzalez and Donnetta Hopper run different businesses on North Tryon Street but face the same challenge. To grow, they must attract people from a culture different than their own.

So the Taqueria Guadalajara restaurant near Sugar Creek Road, which Gonzalez manages, will soon add meals that appeal to non-Hispanics, he said last week.

And the Liberty Tax Service near Eastway Drive, which Hopper manages, offers tax services to both Spanish- and English-speaking clients. Hopper practices her Spanish every chance she gets -- even with the waitresses at Taqueria Guadalajara when she eats lunch there.

"They speak English, so I ask them, `What is this? What did you say that stuff is?' " Hopper said. "I tell them to say it in Spanish and I learn from that."

After years of living side by side but apart, some Hispanic-owned and non-Hispanic-owned businesses near Sugar Creek Road and Eastway Drive are slowly expanding their markets by bridging the language and cultural barriers.

For traditional businesses, the move reflects the growing awareness that Hispanics are here in ever-increasing numbers and often are replacing former residents and customers.

For Hispanic businesses, the change may help soften the economic hit that's flowing through the construction trades. . . .

The rest of the article can be found here.

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January 24, 2008

Why the Miami Chamber of Commerce Owes Hugo Chavez One

The New York Times reports on the substantial relocation of many middle- and upper-income Venezuelans to Miami since Hugo Chavez came to power:

According to census data, the Venezuelan community in the United States has grown more than 94 percent this decade, from 91,507 in 2000, the year after Mr. Chávez took office, to 177,866 in 2006. Much of that rise has occurred in South Florida, making the Venezuelan community one of the fastest growing Latino subpopulations in the region this decade. In many ways, the Venezuelan influx is reminiscent of the Cuban migration spurred by Fidel Castro’s overthrow of Fulgencio Batista in 1959 and his imposition of a socialist state. . . .

Sinking their roots into the South Florida soil, Venezuelans have shifted their money into American banks, married and divorced, opened businesses, become active in local politics, and seen their children graduate from American schools. . . .

The growing Venezuelan population has been a windfall for Miami banks, as many Venezuelans bring their money here. Ken Thomas, a banking analyst in Miami, said the amount of that capital flight was unclear, although he said it was “clearly in the billions.”

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January 19, 2008

Who's Building the Border Fence?

The Wall Street Journal's Mary Anastasia O'Grady fills us in:

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January 18, 2008

Economic Consequences of Local Immigration Laws Continue to Spread

The New York Times takes a look at Waukegan, Illinois, as a microcosm of the effect federal immigration enforcement raids are having on not just undocumented Hispanic immigrants, but on legal citizens and local economies as well:

From Illinois to Georgia to Arizona, these families are hiding in plain sight, to avoid being detected by immigration agents and deported. They do their shopping in towns distant from home, avoid parties and do not take vacations. They stay away from ethnic stores, forgo doctor’s visits and meetings at their children’s schools, and postpone girls’ normally lavish quinceañeras, or 15th birthday parties.

They avoid the police, even hesitating to report crimes.

Stores catering to Hispanic immigrants in places like Atlanta and Cincinnati have closed because of the drop in customers. Michael L. Barrera, president of the United States Hispanic Chamber of Commerce, said anecdotal reports had indicated that small storefront businesses had been the hardest hit by a sharp decline in spending by immigrants.

“The [federal immigration] raids have really spooked them in a big way,” said Douglas S. Massey, a Princeton demographer who has studied Mexican immigrants for three decades.

There are economic consequences to be paid for the stance some communities and states have taken toward immigrants, and we're seeing it, vividly, across the country. In case you missed the story, Oklahoma has been particularly affected.

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January 10, 2008

"Dust Bowl" Immigration Legislation in Oklahoma

Oklahoma is already feeling the economic effects of immigration-related legislation passed last year, even though some provisions of the law have yet to take effect. USA Today reports:

. . . "I've already had customers who came in here and told me they've fired employees because they didn't know if they were here legally," says Tim Wagner, an owner of Cocina De Mino, a Mexican restaurant in Oklahoma City. He predicts industries such as agriculture will face worker shortages.

Widespread reports of vanishing employees and schoolchildren suggest thousands of illegal immigrants have left Oklahoma for neighboring states or their native countries. Cotton gins, hotels and home builders have lost workers. Restaurant and grocery store owners complain of fewer customers.

Some businesses and lawmakers are warning that the economic effects will hit consumers hard. Having a smaller pool of workers for certain jobs will cause delays and create competition among employers, leading them to raise wages and prices, Davis and others say.

Republican state Rep. Shane Jett, who opposed 1804, offers a more dire prediction. Without changes, the law "will be the single most destructive economic disaster since the Dust Bowl," he says. . . .

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January 6, 2008

A Swirling Hispanic Market Captured in a Few Headlines

In the downtime I've had over the last several weeks, we've seen a few headlines which, in sum, capture the turmoil in the U.S. Hispanic demographic, which has in turn translated into slower spending:

Results from a recent survey by the Pew Hispanic Center indicate that a significant proportion of Hispanics across the country, including those that are citizens, "feel a chill" from the intense debate over immigration:

Just over half of all Hispanic adults in the U.S. worry that they, a family member or a close friend could be deported, a new nationwide survey of Latinos by the Pew Hispanic Center has found. Nearly two-thirds say the failure of Congress to enact an immigration reform bill has made life more difficult for all Latinos. Smaller numbers (ranging from about one-in-eight to one-in-four) say the heightened attention to immigration issues has had a specific negative effect on them personally. These effects include more difficulty finding work or housing; less likelihood of using government services or traveling abroad; and more likelihood of being asked to produce documents to prove their immigration status.

Reuters reports on the decision many Mexicans are making to "self deport", either returning to Mexico or moving to other states perceived as less hostile.

The Dallas Morning News named the 'faceless, nameless' Illegal Immigrant the 2007 Texan of the Year:

This essay cannot put a name or a face to an illegal immigrant, because that would subject him to possible deportation. Because he lives underground, the illegal immigrant becomes, in our rancorous debate, less a complex human being and more a blank screen upon which both sides can project their hopes and fears. . . .

We end 2007 no closer to compromise on the issue than when the year began. People waging a culture war – and that's what the struggle over illegal immigration is – don't give up easily. What you think of the illegal immigrant says a lot about what you think of America, and what vision of her you are willing to defend. How we deal with the stranger among us says not only who we Americans are today but determines who we will become tomorrow.

In 1982, Time magazine awarded its "Man of the Year" designation to the personal computer with these words: "There are some occasions, though, when the most significant force in a year's news is not a single individual but a process, and a widespread recognition by a whole society that this process is changing the course of all other processes."

Ponder the irony of these two designations at your leisure.

At the same time, retailers disappointed with results of this year's holiday shopping season are turning to Latinos for help, in the form of El Día de los Reyes--the Christian feast of Epiphany--which for many Latinos represents a gift-giving holiday.

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December 2, 2007

Hispanics Remain a Coveted Demographic for Marketers

In spite of the U.S. Hispanic market slowdown, a survey of top marketers indicates that Hispanics rank just behind baby boomers as the most sought after demographic. Marketing y Medios covers the story here.

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December 1, 2007

Bureaucracy Fuels the Immigration Problem

Steve Conover at the Skeptical Optimist delves into one of the most overlooked aspects of the immigration debate, particularly by many nativists who otherwise claim to be lovers of small government:

Is it possible that our immigration law, and our ability to process would-be immigrants under that law, is way too ineffective and time-consuming, and therefore causes a portion of our "illegal immigration" problem? Is it possible that, under current law and staffing, we cannot process desirable immigrants efficiently enough (including teachers, scientists, engineers, managers, and entrepreneurs)? The US Citizenship and Immigration Service is all but admitting to that at their website. Is it possible that some "illegal immigrants" achieved their illegal status by deciding not to wait for the red light to change?

Most lovers of small, more efficient government argue, and rightly so, I think, that tax simplification will help improve compliance. They argue that we need to "get the government off the back of small business", so these enterprises can be more efficient, presumably more profitable, and therefore prosper and hire more workers.

Why is it, at the same time, they don't understand that a cumbersome bureaucratic process for processing immigrants to this country fosters the very problem they're worried about?

I'm asking a rhetorical question, of course; I know the answer: creating scapegoats is easier than coming up with solutions to complex problems.

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November 24, 2007

Mexican Workers Most Engaged By Their Jobs

In a Towers Perrin survey of workers around the world, Mexicans come out on top in terms of feeling engaged with their jobs. Over half of Mexican workers surveyed felt "engaged" by their jobs, while just 16% felt either "disenchanted" or "disengaged".

Globally, 21% of workers felt occupationally "engaged", while 38% are "disenchanted" or "disengaged". In the United States, the results were 29% and 28%, respectively. You can read more at IndustryWeek.

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November 18, 2007

The Economic Value of Diversity

Philippe Legrain explains why diversity is not some fuzzy headed feel-good notion, but an important source of economic vitality:

The biggest economic benefit of diversity is that it stimulates new ideas, which are the source of most economic growth, which in turn pays for the good schools, hospitals and other public goods that we value.

The exceptional individuals who come up with brilliant new ideas often are immigrants. Instead of following the conventional wisdom, immigrants tend to have a different point of view and notice new details. As outsiders, they are more determined to succeed. Of Britain’s Nobel-prize winners, 21 arrived in the country as refugees.

Most innovations nowadays come not from individuals, but from groups of talented people sparking off each other – and foreigners with different ideas, perspectives and experiences add something extra to the mix. If there are 10 people sitting around a table trying to come up with a solution to a problem and they all think alike, then they are no better than one. But if they all think differently and bounce new ideas and reactions off one another, they can solve problems better and faster, as a growing volume of research shows. . . .

You can find Legrain's complete essay here.

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November 12, 2007

The Deep Roots of Mexican Migration

Álvaro Vargas Llosa visits with the grandson of Emiliano Zapata and sees the deep roots of Mexican migration in a revolution turned corrupt and in the history of a family:

. . . What has been the consequence of a century of collectivization of the land? In the 1990s, when trade policies became more liberal, Mexico's rural population found itself caught up in an extremely inefficient system that was undercapitalized, making it very difficult for Mexican peasants to compete with the outside world. When the government finally allowed the villagers to sell the ejidos, something they had been prevented from doing since 1917, many of them put their land on the market and left for Mexico's cities. When the urban areas did not offer improved conditions, they migrated to the United States. "If my grandfather came back," ponders Emiliano, "he would die of sadness." . . .

Mexico's official history has always maintained that Zapata fought for a socialist revolution. He did not. Zapata was many things -- a womanizer, a drinker, an occasional bandit. Some of his ideas were muddled, but he was no socialist. As the son of small-property owners -- they lived in an adobe house whose ruins I visited in Anenecuilco -- Zapata genuinely wanted his people to own their land. He mistrusted the state: He even refused to sit in the presidential chair when, in 1914, he and Pancho Villa entered Mexico City, seemingly on the verge of total victory in their revolution.

There is an ironic little coda to the story of the grandson, the landless Zapatista: A few years ago, some of his children tried to enter the United States in search of a better future -- a topic Emiliano was reluctant to discuss. . . .

Read the complete commentary here.

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November 4, 2007

Where Would Arkansas Be Without Immigrants?

The Economist speculates:

. . . Between 2000 and 2005 Arkansas had the country's fastest-growing Hispanic population, native and foreign-born. The Census Bureau projects an Arkansas population of nearly 3m in 2010, of which 6% will live in immigrant households. Realising a need, Mexico opened a diplomatic office in downtown Little Rock in the spring.

Of Arkansas's immigrants, 60% (the national average is 54%) are aged between 20 and 45. Their youth suggests that, even more than elsewhere, they may replace retiring baby-boomers in the workforce. Lack of higher education keeps them out of the better-paying jobs, but a report by the Winthrop Rockefeller Foundation estimates that without immigrant labour, annual revenue from Arkansas's manufacturing industry would probably be $1.4 billion lower. . . .

Arkansas's gross state product, for comparison, was an estimated $87 billion in 2005.

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October 29, 2007

An Immigrant Gardener Gives Back

From the San Francisco Chronicle [thanks to TP Wire Service for the pointer]:

Catalino Tapia came to the United States at age 20 with $6 in his pocket. He worked hard, as a baker and a machine operator, and eventually started his own gardening business. He and his wife bought a home in Redwood City and raised their two sons, putting the eldest through college.

Though he never studied beyond sixth grade, Tapia was so inspired to see his son, Noel, graduate from Boalt Hall School of Law at UC Berkeley that he decided to help other young Peninsula people make it to college. Now 63, the Mexican immigrant is giving back to the country he says has given him so much.

With legal help from his son, Tapia established a nonprofit corporation, the Bay Area Gardeners Foundation, and recruited a dozen other immigrant gardeners to join the board. This year, the foundation gave out nine scholarships of $1,500, almost double what it distributed in 2006, its first year.

With his callused hands and burly shoulders, the Michoacán native does not fit the typical image of a philanthropist. When Tapia approached the Silicon Valley Community Foundation for a grant to help strengthen the fledgling organization's capacity, he was told the agency had never seen a foundation started by gardeners before. "Well," he replied, "We'll be the first."

When most people think of a philanthropist, they are likely to think of a society matron or millionaire business mogul, said Manuel Santamaría, a program manager at the community foundation.

"In fact, taking tamales to the church potluck or reading in the classroom - all those little acts are philanthropic," said Santamaría. "Philanthropy means love of humankind. We've got to spin a much better view of what immigrants are contributing. ... And Catalino is taking it to a different level." . . .

Read the complete, inspiring story here.

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October 20, 2007

Tennessee Promotes Tourism . . . in Spanish

For the first time, Tennessee's department of tourism has begun advertising in Spanish-language newspapers. A Spanish version of its website will be unveiled by the end of October. [Source: USA Today] Incidentally, a German version of the site is already available.

Here in Georgia, the state's tourism website is English-only, and presumably proud of it.

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October 15, 2007

A Little Catch-Up on News in the Hispanic Market

I haven't been able to post the last few days--other than the Quote of the Day, of course--so I've got several items to catch-up with:

---Because farm workers are in critically short supply, officials at the U.S. Departments of Homeland Security, State, and Labor are quietly rewriting restrictions on foreign laborers. The L.A. Times reports:

. . . On all sides of the farm industry, the administration's behind-the-scenes initiative to revamp H-2A farmworker visas is fraught with anxiety. Advocates for immigrants fear the changes will come at the expense of worker protections because the administration has received and is reportedly acting on extensive input from farm lobbyists. And farmers in areas such as the San Joaquin Valley, which is experiencing a 20% labor shortfall, worry the administration's changes will not happen soon enough for the 2008 growing season.

"It's like a ticking time bomb that's going to go off," said Luawanna Hallstrom, chief operating officer of Harry Singh & Sons, a third-generation family farm in Oceanside that grows tomatoes. "I'm looking at my fellow farmers and saying, 'Oh my God, what's going on?' " . . .

---Douglas J. Besharov, writing in the New York Times, comments on the significant economic progress being made by U.S. Hispanics as a whole:

Between 1994, the high point for Hispanic poverty, and 2006, the last year with comprehensive data, median Hispanic household income rose 20 percent, from about $31,500 a year in 2006 dollars to about $37,800 a year. The median income of Hispanic individuals rose 32 percent, to about $20,500 from about $15,500.

These incomes do not make Hispanics wealthy, of course, but they did allow about 70 percent of them to send remittances home last year. According to the best estimate, the total sent was $45 billion — $4 billion more than the entire amount distributed to Americans by the Earned Income Tax Credit.

One explanation for this economic progress is increased education. From 1994 to 2005, the percentage of 18- to 24-year-old Hispanics who graduated from high school or obtained a general equivalency diploma rose to about 66 percent from about 56 percent. About 25 percent are now enrolled in college, up from about 19 percent in 1994. Hispanics are moving rapidly into many management, professional and other white-collar occupations. . . .

---The San Diego Union-Tribune reports on the rapidly growing number of businesses from Tijuana and Baja California generally expanding northward into San Diego.

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October 4, 2007

Hispanic Ad Dollars Fall So Far in 2007

While falling less than revenue for English-media outlets, ad dollars devoted to Spanish language media fell in the first half of 2007, with some advertisers cutting budgets by double digit rates.

Of the top 25 Hispanic marketers, 18 cut their spending in the first half of 2007 compared to the comparable period in 2006. Half of those companies made cuts of at least double digits, while AT&T, Verizon Communications, Hyundai, Home Depot and SABMiller all cut their Hispanic ad spending more than 20%.

[Source: Ad Age]

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October 2, 2007

Negative Economic Fallout Forces Backtracking on Laws Targeting Immigrants

Some local governments which passed laws explicitly targeting undocumented Hispanic immigrants are reconsidering their stance as the economic fallout becomes severe:

A little more than a year ago, the Township Committee in this faded factory town [Riverside, NJ] became the first municipality in New Jersey to enact legislation penalizing anyone who employed or rented to an illegal immigrant.

Within months, hundreds, if not thousands, of recent immigrants from Brazil and other Latin American countries had fled. The noise, crowding and traffic that had accompanied their arrival over the past decade abated.

The law had worked. Perhaps, some said, too well.

With the departure of so many people, the local economy suffered. Hair salons, restaurants and corner shops that catered to the immigrants saw business plummet; several closed. Once-boarded-up storefronts downtown were boarded up again.

Meanwhile, the town was hit with two lawsuits challenging the law. Legal bills began to pile up, straining the town’s already tight budget. Suddenly, many people — including some who originally favored the law — started having second thoughts.

So last week, the town rescinded the ordinance, joining a small but growing list of municipalities nationwide that have begun rethinking such laws as their legal and economic consequences have become clearer.

“I don’t think people knew there would be such an economic burden,” said Mayor George Conard, who voted for the original ordinance. “A lot of people did not look three years out.” . . .

[Source: New York Times]

Three years out is past the next election.

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September 28, 2007

A Disgrace

In the U.S., more blacks and Hispanics live in prison cells than in college dorms. [Source: ABC News]

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September 25, 2007

Even in South Florida, Hispanic Children Not Retaining Spanish Language

Even in a region of the country teeming with Spanish-speakers, South Florida, Hispanic parents are frustrated that their children are losing their ability to speak Spanish. The Ft. Lauderdale Sun-Sentinel reports:

. . . While Florida boasts a large concentration of Spanish speakers — roughly 20 percent of Floridians over age 5 speak Spanish or a variation at home — experts say a strong command of the language wanes with the second and third generations. . . .

Parents trying to raise bilingual children worry that a strong sense of cultural identity and job prospects are at stake for Hispanic youth who speak little or no Spanish.

Javier Almazan, of South Bay, the son of Mexican immigrants, bemoans the fact that his two youngest children, both middle schoolers, can barely roll their r's.

"I try to emphasize to my kids that they're hurting themselves. They're closing doors as far as careers go," said Almazan, 39, adding that he's lost hope that his youngest children will speak Spanish. . . .

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September 24, 2007

Legrain on Mexican Immigrants in the U.S.

British economist Philippe Legrain, author of Immigrants: Your Country Needs Them, recent spoke with TCS editor Nick Schultz about the arguments for open immigration he makes in his book. The complete interview can be found here; an excerpt follows:

Schulz: Advocates of firmer restrictions on immigration in the United States say that past historical experience with large waves of migration is not a useful guide. When Europeans came to the US, for example, they had an ocean separating them from their homeland. This helped foster assimilation. But with Mexican immigration, things are different since the homeland is only a river away. What do you make of this distinction?

Legrain: It is certainly conceivable that geographical proximity could be significant, but in practice I don't think it's decisive. The fact that Mexico is next door does not necessarily make it easier for Mexican immigrants to stay in touch with their country of origin: those who are in the US illegally, for instance, cannot readily travel back and forth to Mexico. And thanks to ethnic TV and radio, the internet, cheap telephone calls and low-cost travel, it is just as easy for Vietnamese or Russian immigrants to keep up links to their country of origin if they want to. Conversely, the Amish have been in the US for centuries with little contact with their Swiss-German origins and yet have remained isolated from mainstream society. So I think it's more a question of whether people want to fit in, and whether others are willing to accept them.

I devote a whole chapter of the book to considering Samuel Huntington's argument that Latino immigrants are splitting America in two and find little evidence to substantiate his thesis. To quote just a few facts, census figures show that only 4.2 million of those born in the US--a mere 1.8%--speak Spanish at home and English less than very well, while only 1.2 million of the 232 million people born in the US--one in 200--speaks Spanish at home and has poor or no English.

Huntington inveighs against Latinos trying to maintain their cultural heritage, but what's wrong with that? Being American does not require giving up your roots--and if there is no problem with Irish Americans celebrating St Patrick's Day, indeed with American presidents of non-Irish origin officially celebrating it too, what is wrong with Mexican Americans celebrating Mexico's national holiday on the 5th of May?

Huntington also warns of "the creation of a large, distinct, Spanish-speaking community with economic and political resources sufficient to sustain its Hispanic identity apart from the national identity of other Americans and also able to influence US politics, government, and society." But even in areas where Latinos predominate, America's defining institutions remain intact. The US Constitution remains in place. Democracy and other aspects of the American political system remain intact. Capitalism is thriving. People are still free, the media uncensored, private property protected, the courts uncorrupted. Nothing like Mexico, in fact.

Huntington also claims that "Many Mexican immigrants and their offspring simply do not appear to identify primarily with the United States." But while only one in three foreign-born Latinos describe themselves as American, this rises to 85 percent among their US-born children--and 97 percent among the US-born kids of US-born Latino parents.

Of course, Latino immigrants will change America, as well as being changed by it. But this is neither exceptional, nor need it fracture America's forever changing national identity.

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September 23, 2007

An Hispanic "Parallel Universe" in Memphis

The Commercial Appeal reports on the "parallel universe" in Memphis: the area's sizable Hispanic population and the economy and culture it has spawned, largely unrecognized by mainstream residents. The full story is here.

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September 22, 2007

Rising Numbers of U.S. Hispanic Evangelicals

I ordered and have started reading Mark Penn's book Microtrends, which I mentioned previously. One of the microtrends he identifies--one which we've highlighted as well for you as well--is the rapidly growing numbers of Hispanics in the U.S. who identify themselves as Pentecostal, evangelical, or born again:

. . . a remarkably important subgroup of Latinos in America are Protestant. According to the 2005 book Latino Religions and Civic Activism in the United States, nearly one-quarter of U.S. Latinos identify themselves as Protestant or other Christian, including Jehovah's Witnesses and Mormons. That's about 10 million people in America--more than the number of Jews, or Muslims, or Episcopalians, or Presbyterians in the U.S. And of those 10 million Protestant Latinos, nearly 90 percent describe themselves not a "mainline" or liberal Protestants, but as Pentecostal, evangelical, or "born again".

To some degree, this is all part of the worldwide explosion of Pentecostals, who grew from fewer than 50 million to over 400 million worldwide int he last several decades. Clearly, some of the Latino immigrants' Protestant identity took hold in their home countries. But a lot of it is happening here. According to a 2003 study on Hispanic Churches in American Public Life (pdf), Catholic affiliation drops almost 15 percentage points between first-generation Latino Americans and their grandchildren. Sure, shedding our immigrant ethnic traditions is an old melting pot story--except that now, it's the opposite. New generations aren't so much "blending in" to America as choosing a different niche identity. . . .

To further confound misconceptions about the Hispanic population, Penn goes on to point out that more than half of Hispanic Protestants are predominate English speakers. To many religious Latinos, Penn observes, becoming truly "American" seems to consist both of learning English and turning away from Roman Catholicism in favor of Pentecostalism.

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September 14, 2007

Tough Times for Atlanta's Hispanic Business Community

. . .thanks to a lackluster residential construction market and new state immigration laws, which have even immigrants with legal status alarmed. The Atlanta Journal-Constitution reports:

. . . the fallout has spread far beyond car dealers, which immediately felt the impact from a law that went into effect on July 1 requiring a Georgia driver's license or ID card to get a car tag. It's affecting bakeries, insurance peddlers, banks, food manufacturers, supermarkets, restaurants and other businesses.

Why the slowdown in spending?

Tougher state and local laws that affect illegal immigrants and the lack of resolution over their status after the proposed immigration reform collapsed in Washington earlier this year have left many saving money, spending less and wondering what will happen next.

Add to this a slowdown in the housing market, which affects the job stability of a portion of the Hispanic work force in Georgia.

"This is like a double whammy," says UGA demographer Douglas Bachtel, who studies the Hispanic population. "Whenever there's anything new, there's fear and uncertainty, especially with the immigration status."

Nearly half of the Hispanic population in Georgia is undocumented, Bachtel explains. The census estimates there are 700,000 Hispanics in Georgia, but Bachtel says Hispanics are way undercounted.

"It's affecting all businesses," says Neil Moreno, who sells car insurance in a storefront next to Espinosa.

His business, which dropped by about 30 percent in July and August, now consists mostly of renewing auto insurance policies, not selling new ones. He can't afford to replace his assistant. On a recent morning, close to noon, he sat at his desk waiting for clients.

"This is dead," says Moreno, who is from Puerto Rico. "It's terrible. The phone's not ringing." . . .

Spending by Hispanics will grow at a slower rate in the next five years, says Jeffrey Humphreys, a University of Georgia economist. In 2006, Georgia Hispanics spent $12.4 billion, 10th in the nation, according to his research.

A study released last month by the Washington-based Inter-American Development Bank found that the percentage of Mexicans in "new destination" states who send remittances regularly to their homeland declined from an average of 80 percent in 2006 to 56 percent this year. "New destination states" are those where immigration from Latin America is most recent, such as Georgia, North Carolina and Pennsylvania.

States that have long had Hispanic communities, such as New York, Florida and California, showed a tinier fall, from 68 percent last year to 66 percent this year.

In the "new destination" states, about half a million migrants have stopped sending money home, according to the IDB study.

Miami-based public opinion researcher Sergio Bendixen, who carried out the survey, says that the Mexicans in states such as Georgia don't feel welcome and face an uncertain future.

"They feel alienated. They feel unprotected," Bendixen says.

His sample of 900 subjects included 100 from Georgia. Interview subjects said they felt abused, exploited and discriminated against. "People in states like Georgia don't want them there," Bendixen says.

"They'd never tried to close the doors so much, [as] in the case of the car tag, as they have now," said Zayda Zavala, 26, as she worked at La Suprema Bakery in Marietta. "People don't want to drive." . . .

You can read the complete AJC article here.

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September 6, 2007

If the Labor Can't Come to Me, I'll Just Go to the Labor

From the New York Times:

Farming since he was a teenager, Mr. Scaroni, 50, built a $50-million business growing lettuce and broccoli in California’s Imperial Valley, relying on the hands of immigrant workers, most of them Mexicans and many probably in the United States illegally.

But early last year he began shifting part of his operation to rented fields here. Now some 500 Mexicans tend his crops in Mexico, where they run no risk of deportation.

“I’m as American red-blood as it gets,” Mr. Scaroni said, “but I’m tired of fighting the fight on the immigration issue.” . . .

Western Growers, an association representing farmers in California and Arizona, conducted an informal telephone survey of its members in the spring. Twelve large agribusinesses that acknowledged having operations in Mexico reported a total of 11,000 workers here.

“It seems there is a bigger rush to Mexico and elsewhere,” said Tom Nassif, the Western Growers president, who said Americans were also farming in countries in Central America.

Precise statistics are not readily available on American farming in Mexico, because growers seek to maintain a low profile for their operations abroad. But Senator Dianne Feinstein, the California Democrat, displayed a map on the Senate floor in July locating more than 46,000 acres that American growers are cultivating in just two Mexican states, Guanajuato and Baja California. . . .

Thanks for Latino Pundit for the pointer.

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September 3, 2007

Slowdown in Construction, Slowdown in Hispanic Market Growth

The Wall Street Journal reports on the impact a softening housing market is having on the Hispanic market, and on retailers like Wal-Mart which serve this demographic:

. . . economic jitters -- in particular, the softening U.S. housing market -- have led to spending cutbacks among many in that group. Estimating the impact on a group as large and varied as Hispanics is difficult. But economists at Deutsche Bank estimate about 500,000 illegal Hispanic workers in construction have lost their jobs last year without showing up in government figures. The industry is heavily Hispanic, legal or illegal: The group makes up 25%, or 2.9 million, of the 11.8 million workers in the U.S. construction industry, according to the Pew Hispanic Center, with about three-quarters of them foreign-born.

"There's less work," says Jesús Manuel Vázquez, a sheetrock installer in Dallas who sends money to his mother-in-law in the state of Chihuahua in northern Mexico every 15 days but recently has cut back.

Economists cite the housing market, among other factors, for a drop in those money transfers. The Mexican central bank estimates that money transfers into the country have risen 0.6% so far this year, compared with a robust 15% increase last year and 21% the year prior. Money transfers from the U.S. are estimated by economic-analysis firm Global Insight Inc. to account for 5% of Mexico's consumer spending. . . .

We noted the slowdown in remittances several weeks ago. In the month of May, remittances to Mexico were down year to year for the first time since 1999. The Central Bank of Mexico estimates that remittances from the United States were about $11.4 billion in the first six months of this year, roughly equal to that of the same period in 2006. (See this Washington Post article.) After a decade of 10% or so growth in remittances, and by implication, the incomes which fund them, such a slowdown is dramatic.

The aforementioned Wall Street Journal article addresses the effect this slowdown in incomes is having on Hispanic spending:

[In addition to Wal-Mart], other retailers catering to Hispanic shoppers report lulls. Adir International LLC's La Curacao, a closely held chain of eight Hispanic department stores in the Los Angeles area, reports that its sales gains have fallen two to three percentage points from their year-earlier levels. Similarly, the chain's sales of money transfers have slowed. "We're still posting good numbers vis-a-vis last year, but we are starting to see the beginning of a slowdown in consumer confidence," said Mauricio Fux, senior vice president of business development.

Minyard Food Stores Inc., a closely held operator of 26 Carnival Hispanic grocery stores in the Dallas-Fort Worth area, registered a slight pullback in sales gains earlier this year. Chief Executive Officer Mike Byers attributes the slackening to an unusually wet spring in Texas that cut into construction hours and limited the pay received by many Carnival shoppers.

Osiris Rubio, a 21-year-old construction worker in Dallas, has reduced to $1,000 from $1,500 the amount he and his brother send to family in Paracho in central Mexico every 15 days. The market for construction work in the area "is very slow," Mr. Rubio said, standing next to his nearly empty shopping cart in a Dallas Wal-Mart. "I still work five days a week, but there's no overtime. So I get less money."

Mr. Rubio's relatives in Mexico have pared their spending and dipped into their savings to make ends meet. His mother uses the money he sends home to buy groceries and pay school tuition for his two brothers still in Mexico. "We don't spend on any luxuries," he said.

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U.S. Hispanic Market to Become the Hemisphere's Third Largest Economy

The rising purchasing power of the U.S. Hispanic consumer will make this demographic the third largest economy in the Western Hemisphere by 2010, says Michael L. Barrera. Barrera is President of the U.S. Hispanic Chamber of Commerce.

Further, Barrera expects that the number of U.S. Hispanic-owned businesses, now about 2 million, will rise by over 50% by 2010, to 3.2 million.

Read more in this Hispanic Business article.

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September 2, 2007

Grateful for Latinos in New Orleans

It takes a disaster and recovery from it, says Mario Villarreal and Danile Rothschild in a Wall Street Journal editorial, to appreciate the contribution of Latino immigrants to this country:

. . . To be sure, most of the Latinos who arrived after Katrina are probably undocumented. But what of it? There is widespread bipartisan agreement in Washington and Baton Rouge that the recovery efforts are too slow. Does it really matter who does the work, as long as it gets done -- and quickly?

There is little evidence that these immigrants are the scroungers or welfare cheats their detractors claim. They came here for one reason: jobs. As one said to us, "I do not need help. I need a job, that's all I need." And they plan to stay, as many people told us, "as long as there is work to do."

Nor is there evidence that they are taking jobs from native New Orleanians. As of April, the last month for which data are available, unemployment in Orleans Parish was 4.0%, compared with 4.5% nationwide. By comparison, in July 2005, the Orleans Parish unemployment rate was 7%, two percentage points above the national figure.

Moreover, the Latino immigrants in New Orleans are not merely doing construction. They're also opening stores and restaurants, breathing economic vitality into a city still badly in need of a boost.

St. Claude Avenue, one of the two main drags through the Lower Ninth Ward, remains close to deserted, with only perhaps a half-dozen businesses open. But with its spray-painted sign and impressive selection of Latino groceries, soft drinks, phone cards and compact discs, Tienda Latina (essentially, "Latin Store") is bringing commerce back into the most devastated neighborhood in New Orleans. Its customers, as might be expected, are mostly Latino, although a handful of Anglos come through as well. It was the first store between the Industrial Canal and St. Bernard Parish to reopen.

Loncheras, or "taco trucks," are everywhere, although Jefferson Parish officials have banned them from their suburban community on (dubious) health grounds. Orleans Parish officials have been considering doing the same, although the chief proponent of the ban, Councilman Oliver Thomas, resigned earlier this month after pleading guilty to accepting a bribe. . . .

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August 21, 2007

El Paso: From Sleepy Border Town to Manufacturing Dynamo

Issues like border security, fences, immigration, and trade are a little more complicated in El Paso, which together with its neighbor across the border, Juarez, now has 270,000 manufacturing jobs. That's triple the number in Detroit, and places the El Paso-Juarez "borderplex" fourth in the North American continent, behind only Los Angeles, Chicago, and Dallas-Fort Worth, in manufacturing jobs. Read the Washington Post story here.

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August 9, 2007

Rising Suburban Minorities

From the New York Times:

In a further sign of the United States’ growing diversity, nonwhites now make up a majority in almost one-third of the most-populous counties in the country and in nearly one in 10 of all 3,100 counties, according to an analysis of census results to be released today.

The shift reflects the growing dispersal of immigrants and the suburbanization of blacks and Hispanics pursuing jobs generated by whites moving to the fringes of metropolitan areas.

From July 1, 2005, to July 1, 2006, metropolitan Chicago edged out Honolulu in Asian population, and Washington inched ahead of El Paso in the number of Hispanic residents. In black population, Houston overtook Los Angeles.

“The new wave of immigration, along with its continued dispersal to the suburbs and Sun Belt, is transforming the places which are now being classified as multiethnic and majority minority,” said William H. Frey, a demographer with the Brookings Institution.

“The new melting pots are not large international gateways,” Professor Frey said, adding, “Rather, many are fast-growing suburbs themselves.”

In 36 counties with more than 500,000 residents each, non-Hispanic whites are now a minority, up from 29 counties of that size in 2000. . . .

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August 5, 2007

Country Music Industry Ready to Serenade Hispanic Demographic

"I Need You" is one of country singer Leann Rimes most well-known hits, and the country music industry is poised to serenade the Hispanic demographic with a similar tune.

The Country Music Association has formed a task force to study opportunities in the Hispanic market, which will likely lead to a formal market campaign in 2008, reports the Nashville Business Journal. This would mark the first time that the industry has targeted a specific consumer group, and is driven by events such as Los Angeles losing its last country music station last year, playing Keith Urban's "Tonight I'm Going to Cry" as its swam song.

If anything, the country music industry is late to the party. Here's what their study will find: Hispanics are loyal radio listeners and outpace the general population in consumption of Internet radio and music downloads.

If I were the CMA, I'd get on with the marketing campaign.

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July 31, 2007

Immigrants Driving Housing

Roughly half a million housing units in the U.S. are newly occupied each year by immigrants. To compare, new housing starts for the country are currently running at about 1.4 million annually.

In some regions of the U.S., immigrants account for more than 90 percent of all growth in housing demand. [Source: AP]

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Thanks to Hispanic Viewers, Soccer Kicks Hockey

According to ESPNsoccernet, nearly twice as many U.S. viewers tuned in for the June 24 Spanish language broadcast of the Gold Cup finals between the U.S. and Mexico as those who watched this year's deciding Stanley Cup match. [Thanks to Hispanic Tips for the pointer.]

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July 26, 2007

U.S. Remittances to Mexico Fall for the First Time in Eight Years

Cash sent to their home country by Mexicans living in the U.S. fell in May for the first time since 1999, and are up less than 2% year to date. Remittances from the United States to Mexico in 2006 rose 15%, so the slowdown is of dramatic proportions.

Analysts attribute this trend to the slowdown in new housing starts in the U.S. and tighter border measures, and an increase in deportations.

Reuters has the full story.

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July 24, 2007

For Hispanics, Education is the Top Issue

The National Council of La Raza has issued survey results which indicates that the top issue for Latinos in evaluating Presidential candidates is not immigration or health care, but education. Half of those surveyed regard public schools as either "mediocre" or "poor".

While there are obviously political implications in these results, there are business implications as well. Like families of other ethnic groups concerned about the quality of their children's education, look for Hispanic spending on personal computers, educational software, aids, and supplies to experience significant rates of growth in coming years.

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July 10, 2007

"Boomer Sooner" Goes Spanish

KTUZ-FM 106.7 ("La Zeta”) in Oklahoma City will broadcast the Oklahoma-Miami game in Spanish, a first, when the two teams meet on September 8th. This broadcast, if successful, could lead to a long term agreement. NewsOK.com has the full story.

As with the University of Arkanasas, this move is about business, as it always is with college football in the South. Oklahoma's Athletic Department sees dollar signs in the state's growing Hispanic population:

"We see this as an avenue to expand a very large fan base . . . ." OU athletic director Joe Castiglione said.

"We want Spanish-speaking citizens to know that we embrace them for our events and we will seek other ways to encourage their interaction with our programs."

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July 6, 2007

Hispanics Filling Online Shopping Carts

From InformationWeek:

Jupiter Research's report "Hispanic Shoppers Online, 2007," predicts that Hispanic online shoppers will spend $12.8 billion on retail products in 2007, or 11% of all online retail spending. Hispanic spending online is expected to grow to $21.6 billion by 2011, and Hispanics will represent about 13% of all online spending, according to Jupiter.

Hispanics are more likely than others to research products online, with 27% reporting that they use the Internet all or most of the time to research purchases made in brick-and-mortar stores, according to the research. That compares to 23% for non-Hispanics. . .

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July 1, 2007

Implications of a Plunging Fertility Rate in Mexico

In the fifteen years between 1990 and 2005, fertility rates in Mexico dropped from 3.3 children per female to 2.1, according to the World Bank. This rate of fertility is significant in that it represents the breakeven point for stable population in the developed world. Robert M. Dunn, Jr., writing at The American, observes that this trend means that Mexico will have an aging population trend all its own in coming years, as the proportion of young to old falls:

. . . As labor markets in Mexico tighten and wage rates rise, far fewer Mexican youngsters will be interested in coming to the United States. Since our baby boomers will be retiring at the same time, we could face a severe labor shortage.

Mexican immigration to the U.S. is already slowing, thanks in part to a cooling in housing starts and a concomitant slackening in demand for construction labor.

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June 23, 2007

Hispanic Radio Continues to Prosper

Arbitron has just released its 2007 version of "Hispanic Radio Today" (pdf), and it reveals continued growth in Spanish-language radio against the backdrop of a lackluster industry environment overall.

The number of stations with Hispanic programming increased 4% in 2006, rising to 730, a new record. This figure is 37% greater than 1998's tally of 533 stations.

Time spent listening has generally risen among both men and women, and away from home listening is increasing as well. Specific details can be found in the report.

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June 19, 2007

Immigration Reform and Hispanic Media

Julio Rumbaut on how immigration reform will help Hispanic media:

. . . while a sizable number of Hispanic individuals may be in legal limbo for some time, they will certainly be protected under the law and will logically and naturally aspire and achieve better and more economically rewarding employment, as well as enter into entrepreneurial undertakings. In particular, the legalization of many young people who have been precluded from attending colleges and universities because of residency requirements will significantly enhance the human capital of the Hispanic population, their access to better-paying jobs, their future earnings, and the tax base of their communities.

Media serving the Hispanic market's rapidly expanding population will be extremely well positioned to capitalize on an expansion of this consumer base, which will yield higher disposable income and more permanent aspiration factors due to more open and more rapid legitimization of legal status- and the trust and acceptance that comes with it.

This is especially the case when one of the major challenges faced by