ABSTRACT
This chapter seeks to understand the impact of remittances on nation-states. Remittances are flows of money that migrants send to their country of origin from their country of residence. As some economists have argued, remittances have benefits for the US Justin Sandefur argues that the loss of money to Mexico is not a real loss, rather that this exchange of labor for money brings far more benefits. As he points out, Figuratively, Americans trade pieces of paper with green ink for real stuff. If families in Mexico use those dollars to buy things made in Mexico or elsewhere, then America has essentially gotten immigrants' services without paying anything tangible in return. CATO's Alex Nowrasteh points out that a remittance tax would not work in the case of Mexico. A remittances tax would have to be very high to raise enough revenue to pay for a wall, even assuming there is no fall off in revenue at higher rates.
