November 13–20, 2026: Expat Insider Seminar in Guatemala & El Salvador. See seminar details.
The Expat Files Podcast

#367 – The Expat Files: Immigration, Economy, and Expats in Latin America

Show #367 · June 20, 2014

Johnny Mueller discusses immigration issues, economic disparities, and expat safety in Latin America

Episode Summary

In this episode of The Expat Files, Johnny Mueller explores the multifaceted issues surrounding immigration, economic disparities, and expat life in Latin America. He begins by discussing a news report from San Antonio's news radio 1200 WOAI about the surge of illegal immigrant children entering Texas, which is costing US taxpayers billions. Johnny critiques the portrayal of Central American countries as having extreme levels of crime and corruption, suggesting that the US government and media often misrepresent these issues. He also comments on the economic conditions in Latin America, arguing that the poor are the ones who migrate illegally, while the more affluent have assets to lose and are less likely to attempt illegal migration.

Johnny then delves into the socioeconomic status of illegal immigrants in the United States, highlighting the classist perception of illegal immigrants, noting that many are uneducated and come from poor backgrounds. He addresses the misconception that illegal immigration is easy, explaining that the reality is more complex, involving networks and shared risks. He also touches on the role of remittances sent back to Latin America, particularly in Mexico, as a major source of foreign income.

The discussion moves to the economic disparity between the United States and Latin America, with Johnny noting that millions of illegal immigrants from Latin America continue to migrate to the U.S. despite high unemployment rates. He argues that these individuals often return to their home countries with a sense of superiority, believing they have experienced the American dream. He also touches on government programs like the Obama phone, which he clarifies was actually initiated under President Bush, and how such programs are often misused or overextended.

Johnny then discusses the financial and social implications of government subsidies for phone services in the United States, particularly highlighting how these programs benefit telecom companies and are exploited by undocumented immigrants. He mentions TrackPhone, led by Mexican billionaire Carlos Slim, which receives significant government support and distributes subsidized phones to low-income individuals, including undocumented immigrants. He further discusses the broader context of crime in Latin America and its impact on expats, emphasizing that while major cities like Guatemala City are often portrayed as dangerous, expats can live safely in smaller towns with a strong sense of community and self-policing.

In the final segment, Johnny provides an overview of the safety and crime situation in Guatemala City, emphasizing the importance of avoiding certain zones and the risks associated with public transportation. He also discusses the broader context of crime in Latin America, highlighting that while major cities have dangerous areas, there are also many safe, smaller towns with minimal crime. Johnny references a newspaper article that lists both the most dangerous and safest cities in Guatemala, offering specific examples of small towns with very low crime rates.

Topics

Immigration issues in the US and Latin America, Economic conditions in Latin America, Critique of US media and government portrayal of Latin America, The motivations and realities of illegal migration, illegal immigration, socioeconomic status of immigrants, remittances and their economic impact, cultural and linguistic terms related to immigration, Economic disparity between the U.S. and Latin America, Illegal immigration and its impact on the U.S. economy, Deportation and the perception of the American dream, Government programs and their misuse

Chapters

00:00:00 Opening
00:00:54 Flood of Illegal Immigrant Children into Texas Costing US Taxpayers Billions
00:04:45 Critique of US Media and Government Portrayal of Latin America
00:07:01 The Poor Are the Ones Who Migrate Illegally
00:07:26 The Socioeconomic Status of Illegal Immigrants in the U.S.
00:07:55 The Reality of Illegal Immigration and the American Dream
00:12:22 The Economic Impact of Remittances on Latin America
00:12:57 Illegal Immigration and Tax Evasion in Mexico
00:12:59 The Economic Disparity Between the U.S. and Mexico
00:13:26 Why Illegal Immigrants Continue to Enter the U.S.
00:13:32 The American Dream and Its Perception Among Deported Individuals
00:17:39 The Origins of the Obama Phone Program
00:18:14 Subsidies and Telecom Companies Benefit
00:19:14 Subsidy Payments Increase Dramatically
00:20:39 Exploitation of Government Programs by Illegal Aliens
00:21:35 Safety for Expats in Smaller Towns
00:23:20 Introduction to the Safety Overview of Guatemala City
00:24:06 Overview of the City's Zoning and Crime Distribution

Transcript

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border, down Mexico way That's where I fell in love when the stars above came out to play And now as I wander Hello there all you expat wannabes I'm Johnny Mueller and you're listening to The Expat Files, living in Latin America The show that tells you just what it's like to live, work, play and or retire down here in Latin America It's a mix of the good, the bad, the ugly and the great And it's all right here so let's get started Let's start out today by reading something very interesting Now this is an article that came out last week from San Antonio's news radio 1200 WOAI And Texas as you might know is ground zero for the flood of illegal immigrants coming in from Mexico and parts out

[00:52] The title of this news report is Flood of illegal immigrant children into Texas costing US taxpayers billions And after I read this I will connect the dots for you here and show how it pertains to us living down here in Latin America And here's something else you should know before we get into this According to Texas border patrol guards, there are over 2 million illegal Latin aliens in Texas alone Strangely enough, that's double the amount of legal first world gringos and gringas who've gone to Mexico to set up shop That is live, work, play or retire Anyway, pay attention to this one It starts out The surge of illegal immigrant minors rushing over the Rio Grande threatens to overwhelm the Texas border patrol

[01:41] And new figures show that this unexpected development will cost US taxpayers more than 2 billion this year According to San Antonio news radio 1200 WOAI news reports Border patrol sources report More than 1,000 unaccompanied immigrant children are arriving in the US each week according to figures released by the Department of Homeland Security And some 60,000 are expected to arrive in the US this year alone That is up 10 times or 1,000% just since 2011 US Representative Henry Kruler, Democrat from Laredo, Texas, who represents a large portion of the border where the waves of unaccompanied children are arriving says the situation is out of control

[02:30] The border patrol is telling me we need diapers, we need baby seats, so we can transfer them, he said Some of the unaccompanied children are as young as 3 years old More than 1,000 have been sent to Lackland Air Force Base in San Antonio And others are being sent to other locations far from the border because the flood has left border patrol housing facilities packed Representative Kruler says the flood of unaccompanied minors is costing the taxpayers $252 per day per child We are playing defense on the one yard line, Representative Kruler told 1200 WOAI News Radio's Michael Board Meanwhile, US Representative John Carter, Republican from Round Rock, Texas, said the Obama administration policies are to blame

[03:23] Saying federal talk about amnesty and a path to citizenship for young illegal immigrants has led to thousands of children being smuggled into the US The issue is threatening to torpedo any hope of immigration reform of any sort being approved in Congress this year Many of the young illegal immigrants are smuggled into the US from Central America The report goes on to say Honduras and Guatemala are among the worst governed countries in the world with skyrocketing inflation, a brutal crime rate and gangs running many cities The rate of violence in Honduras is the worst in the world, with streets of Honduras more dangerous than Afghanistan or even Syria Well, I can tell you they got some of those facts wrong And you know that always seems to happen when people up in the states report on things that are happening down here from their desks in Boston or on their sofas up in Cleveland

[04:17] When you get a report like that with no boots on the ground, they always screw up on some things However, the boots on the ground reporting in Texas is 100% believable Anyway, the fact is, in Central America there is no runaway inflation In fact, it's about exactly the same as those inflation numbers the US government is so good at lying about And that bit about Guatemala and Honduras having the worst governments in the world Oh sure, those governments and most of the rest of all the governments in Latin America really suck, but look who's calling the kettle black Don't forget that nearly every gringo and expat that I know in business down here is in the 5% or less tax bracket That's what we all pay for bad government down here

[05:04] How about you poor saps? You're paying 40 or 50% up there for your crappy corrupt government Don't ever forget that And that bit in the article about Latin American cities being run by gangs Well, I'll get into that in a few minutes But back to the article, it continues The brilliant statement from a brilliant politician, huh? That's me talking

[05:55] And by the way, that bit about Mexico being that Latin powerhouse economy don't make me laugh But more on that too in a minute Anyway, it goes on to say The article goes on to say Okay, now it's me again I have heard numbers like that banded around anywhere from 4,000 to 10,000 bucks

[06:40] But I'm here to tell you there's something very wrong with those numbers Remember, these are people who have dirt floors and tin roofs They've got nothing and nothing to lose Fact is, in all my years down here, I've never met a middle class or lower middle class Latin Who could come up with even a hundred bucks at short notice for an emergency And believe me, that class of Latins are the only ones that ever go up to the states illegally The upper middle class and educated Latins would never consider doing that Sure, they'd all like to go up to the states and visit Disneyland and New York and all that And some of them do And they too believe 100% that there's some kind of American dream up there But you see, they do have some assets at home and therefore have something to lose

[07:26] Like, for example, a decent job and a career And they know if they got caught in the states as illegals They'd never be allowed a legal visa to get back into the country for any reason It's true, they have jobs and careers that do not pay much by our standards But they are proud of the fact that they're a cut above the average person here Believe me, it's the scruffiest, worst, most uneducated group of Latins that try to get to the states And as classist as that sounds, that's just the way it is The fact is, an illegal alien up in the states who's got a college degree from a Latin American university is unheard of And the fact is, less than 10% of illegal aliens up there have the equivalent of a high school education So that's the sad fact of what you've got to deal with up in the states

[08:12] I'm here to tell you, not even upper middle class people have $4,000 to $10,000 cash It seems like everyone down here, except gringles and expats, are on the payment plan for everything they own Even though it is a cash-based society, hardly anyone has any real cash That's why, down here, a $500 or $1,000 down payment will get you a brand new house or car That common denominator had to be reached or no one would ever own a new house or car Excepting narcos and corrupt politicians, of course Are there any other kind? Now the fact is, and I've heard it from diverse sources That the vast majority of these so-called mojados, that's the term for wetback And believe me, it's no insult, it's used down here all the time

[08:58] It translates directly to a person that's drenched in water Because that's what you get if you swim the Rio Grande River So even if wetback is not PC in the states Down here, that's what illegal immigrants are known as So what about that $4,000 to $10,000 they say you need to pay a coyote to slip into Texas? Yet we all know that poor folks don't have a chance in hell of scraping up a fraction of that Even so, millions still make it to Texas every year What's up with that? Well, I've heard from various sources that the vast majority of people trying it Start out with much less than $500 in their pocket So how do they do it? Well, they generally make a deal to tag along with a local person Maybe from their own neighborhood who's done the trip before

[09:46] A guy who's been deported once or maybe even 3 or 4 times, that's common And therefore knows his way around a bit and has developed a kind of a network of friends And safe houses or fields or forests crash in A kind of an underground wetback railroad As one old Latin guy told me who'd been deported many times himself He said like gatecrashers at a concert There's always a bunch of guys and gals who show up who don't have the money But somehow get in So next time you hear about that $4,000 to $10,000 crap for a coyote Just know that doesn't happen in the real world Anyway, according to this article Analysts say some illegals are actively gaming the system They're being given false hope by smugglers of some sort of blanket amnesty for children

[10:36] If they can make it to the U.S. Some children are told falsely that after that amnesty is granted They will be able to bring their families into the U.S. as well One young Honduran lady told Reuters that she didn't think that entering the U.S. was even illegal Everybody in my hometown in Honduras was doing it, she said Okay, and it's me again Now, think of it She says everyone in her hometown in Honduras is doing it Yet she doesn't think it's illegal So tell me now Does that give you the impression that it's ridiculously easy to slip into the United States And just plant yourself there and live the American dream? Obviously from what that Honduran girl says Most of them think it's a sure thing

[11:23] Okay, so that's the gist of it Anyway, my question to all you expat and expat wannabes out there is Just who are all these illegal immigrants flooding into the States Where are they coming from and why are they in such a rush to get the hell out? Why, it's because the poor folks down here anyway The ones that live in those terrible, dangerous, getaway sections of Latin cities Most who live with polluted water, dirt floors, and tin roofs Still believe in that persistent myth of the American dream Well, for one thing, they're an extremely undereducated and unknowing bunch They don't read, but they watch a lot of TV and have at least one relative or two or maybe six Who are living up there illegally now and sending back money called remisses And like one of these deported guys once told me

[12:11] Just the fact that many people are sending back those cash remisses every month Shows that they've achieved the American dream since the average Latin has no money at all left over at the end of the month for anything Oh, and about that so-called massive Mexican economic engine Did you know that the number one source of foreign income for Mexico is not tequila or Corona beer Or petroleum or natural gas And by the way, it's one of the world's biggest natural gas producers And since it's wholly government-owned, it's a massively chaotic, corrupt disaster But you knew that, didn't you? Anyway, in Mexico, the number one source of foreign income is those remisses Those monthly wire transfers coming mostly from illegal aliens up in the States

[12:57] Via Western Union and such And by the way, it's been estimated that 95% of those dollars transferred to Mexico every month Have never been taxed because these people are getting cash off the books Now, we all know that the unemployment figures up in the States for regular US citizens, of course, are pathetic Ask any US citizen up there, especially any recent US college grad And you'll hear wailing and gnashing of teeth Yet with employment conditions so dire in the States Why do millions upon millions of illegal Latins keep rushing the border? Why? Because of that so-called American dream So you ask why the persistent myth when so many able-bodied Americans are out of work Well, that's easy because illegal aliens can go up to the States and survive

[13:45] Whether they actually work or not The fact is, when down here in Latin America, like I am If you hang around middle-class folks That is, people making three to five hundred bucks a month You'll run into deported Latin Americans all the time Go into a hardware store, go into a bank, go shopping at a Walmart And the friendly guy stocking shelves who tries to speak a little English with you Nine out of ten times, that guy was an illegal in the States and now deported In fact, most of those guys have a slight advantage on their resumes After being deported and coming back to their home countries Because businesses down here are always looking for someone who's bilingual In any field, those jobs always pay a little bit more And you know, over the years I've met a lot of these deported aliens At parties and get-togethers and quinceaños gigs and stuff

[14:33] They always manage to chum up to the lone gringo like me Who's sitting on a couch looking thoroughly bored Flicking the remote looking for Turner movie classics or HBO in English Unfortunately, I'm always the one they try to practice their ghetto English on And you know, I don't think I've ever met a deported Latin And like I said, I've met hundreds of them Who wasn't dying to get back to the States somehow Why? Well, even though they're illegals And have learned nothing but bad habits and bad English in the barrios up in the States For them, not only is it a huge ego boost To say they lived up in the States and had money and the American dream Even if they only had it a couple of months before they got caught and deported The fact is, it's easy for us gringos who speak Spanish to notice

[15:22] They really believe they're a cut above their friends and relatives who've never been there They consider themselves somewhat first world and are proud of it And often rub it in to their families and friends who haven't made the trip Even to the point of irritating people, and I've seen that But the fact is, I've never met one of these deported guys who wasn't gaming the system up in the States somehow Of course, when they first sneak in, they haven't got a clue But they learn fast The fact is, I've been told the first thing that happens when you arrive in, let's say, Los Angeles as an illegal Once you find and hook up with your illegal friends and family The first thing that happens is they hook you up with the neighborhood fixer That is, a local Latin person who knows all the angles With all the freebies and the government programs and how to get in on them

[16:09] Not to mention the ins and outs of fake IDs and social security numbers, etc. Now, in that vein, the other day I was talking to one of my seminar attendees Who ended up coming down here to live And this time I learned another depressing fact about the US that I wish I hadn't known Now, this guy is from Cleveland and he has some experience with the so-called Obama phone Which I knew very little about until he mentioned it And when he explained to me that he personally knew some people up in Cleveland Who, due to their low income status, not only receive a free phone or virtually free phone But get 250 minutes a month for free, too Well, a few days later, I was at an all Latin party A mixed crowd with mostly middle class and upper middle class folks And when we got to talking about, or well, I should say when I got to talking about

[16:58] That so-called myth of the American dream Well, when some folks at that party started speaking to me in broken English In hearing the slang they used, obviously they'd been deported at some time or another Well, when they started rattling off the benefits of being up in the States Their take on the American dream and such That's when I next heard mention of that Obama phone again And get this, and this really made me laugh Sitting around were maybe 20 people in a living room and 3 young ladies on the couch When they heard that free phones and minutes were being given away by the government up in the States You should have seen their eyes light up And just as an aside on this Obama phone thing I looked it up and actually found out it was started under Bush in 2005

[17:44] That's when the FCC started allowing some prepaid wireless providers to participate in this program And as usual, since every government program becomes like a cancer There was tremendous growth This really has to blow your mind It's like out of the Twilight Zone It says here on this political news site www.politico.com The phone program's focus is on low income customers But it also benefits telecom companies And here's the Twilight Zone part Providers receive $9.25 a month per customer and subsidies Trackphone led by Mexican billionaire Carlos Sim Has focused its business model on low income subscribers

[18:30] In 2009 alone, Sim's company received $190 million in US support payments According to a US government accountability office report Okay now, did you get that? Free phones or subsidized phones to poor people in the States Including hundreds of thousands of illegal aliens that game the system by the way And where did the subsidies go? Back to Mexico to billionaire Carlos Slim Man, I'm telling you, you can't make this stuff up But that's not all It says here, Carlos Sim's trackphone company remains the top carrier Followed by Virgin Mobile, AT&T, Nexus and Verizon And subsidy payments to these companies increased 1,000 fold since 2009 to $2.2 billion

[19:25] Now don't you feel good about that? And how do you qualify? Well it says here Subscribers qualify for the program based on income with only one service permitted for family But for years, people didn't need to prove eligibility at all Which led to systemic misuse and phone duplications Representative Tim Griffin, Republican Arkansas said He said one day, free phones just started showing up at the homes of his poor constituents It's me again, so what does that mean? They're delivered to the homes too? And finally it says here Americans pay for this lifeline service and several other phone programs Through a monthly charge on their phone bills that averages $2.50 So why am I talking about all this? Well that's the kind of thing that draws illegal aliens coming up from Mexico and parts south

[20:14] Who live in crime ridden districts in big cities throughout Latin America That's where the majority of illegal aliens come from So all you gotta do is sneak past the border Hook up with your illegal buddies or family members in Houston or East LA Join the drywall or the landscaping crew That's if you can Though it's becoming less and less likely with those chronic unemployment problems up in the states Either way, get to a fixer and get yourself some fake documents And little by little start feeding at the government trough So again, back to the incompletely educated unwashed masses that find their way up to the states They're living for a lot of reasons They're uneducated, unskilled, dirt poor And a hail from terrible crime infested areas

[21:00] So they've got plenty of good reasons to leave Besides being part of the American safety net slash welfare system and getting an Obama phone So then how bad is the crime in Latin America? Or more importantly, how does the crime situation in Latin America affect us gringos in long term expats living down here? Do we live in fear, shedding ourselves behind guarded walls and barred windows? Now all you long time listeners to this show know that I always recommend Living in the smaller towns in Latin America Generally towns under 50,000 people Where there is a small town atmosphere everybody knows everyone Where the public is basically self policing Since it's well known that throughout Latin America Cops sit on their dead asses in their patrol cars

[21:47] Or their little guard checks and do pretty much nothing Oh and by the way when you hear stories about heavily armed military and police forces on every corner Remember what I said in so many past shows Those cops at the car roadblocks Are just there to see if you got your license and registration in order So they can give you a ticket if you don't They're not there to shake you down and screw around with you They may look mean all dressed up in their fatigues and khakis and stuff But in 20 something years down here I've never been screwed with by those guys Now that's not to say around Christmas time I haven't been hit up for a 10 or 20 dollar bribe And I know it's a bribe But you can usually play stupid gringo and talk your way out of that one too If you live down here you'll know what I mean

[22:32] I've spoken enough about that stuff in past shows So if you want the details just go into the archives and check it out So let's talk about crime in Latin America Now I have to know like any big city even in the states There are very good and very bad areas And areas that are kind of in between For example let's take that very dangerous city Guatemala City Or so says the First World Press and the US State Department Now you know I've done a couple of seminars in Guatemala City I have a lot of very good contacts there Many long term expat friends who've made good And thus I have a pretty good idea Just what is and what isn't dangerous in Guatemala City Now Guatemala City and the vicinity around it Contains about 3 to 4 million people It's the biggest city in Central America

[23:20] And like I say right up front at the seminar as soon as we get started The city is divided into 25 zones or neighborhoods And at about 10 of these zones are to be avoided day and night Because they're just stacked balls to the wall With poor low class folks and the jerks that prey on them These are places I never go and I don't recommend You or any other gringo or expat take a nice stroll through Then the city has another 6 or 7 First World type zones Or neighborhoods that are quite safe both day and night In fact if the signs and billboards weren't in Spanish You'd think you were in a nice upscale district in a mid-sized city up in the States In fact I can't tell you how many of my seminar attendees Have said those exact same words

[24:06] So like I said Guatemala City has 25 distinct zones And in that mix there are about 5 or 6 business and commercial zones That are totally safe by day but I wouldn't recommend taking a stroll through at night So the fact is 95% or more of all the crimes, homicides, extortions and all that Occur in those 10 or so bad zones I was telling you about The ones I never recommend you take a stroll through unless you're in a car And about the public transportation Since those chicken buses are packed elbow to butthole with all of the poor sweaty masses Who could never hope to own a car That's where a hell of a lot of crime also exists And I always advise you never take a chicken bus

[24:53] And of course you know I'm always about the low profile and blending in So any gringo or anyone with a nice new SUV is just asking for trouble Now I have to repeat I recommend living in a small town in Latin America A town of 50,000 or under I've always lived in smaller towns or out in the burbs Because I know it's a hassle to live in any big city anywhere Especially in Latin America When you've got a city of a million or more There's always terrible pollution and bad traffic bottlenecks Though I've been around the world a few times And I know the bad traffic is a problem in every big city First world and third world In fact I know of no city in the world with a million or so people That doesn't have a one or two hour rush hour traffic jam

[25:38] From one end of the city to the other And speaking of my take on crime in Latin America For you doubters What I have in front of me is a quite extensive newspaper article Which addresses statistical crime and violence In specifically the country of Guatemala Get ready for a few surprises First they list the five most dangerous cities And they're the usual suspects All of them over a hundred thousand people But as is always the case Even in those big cities there are some nice, safe, first world like areas Some very safe neighborhoods and shopping areas both day and night Now also in this extensive article They list the 20 safest cities in Guatemala Let me translate some of this because it is in Spanish

[26:25] Here's what it says There are many other municipalities That have reported almost no criminality In the last six months Let me list some of these places and their populations Number one Aguas Calientes and Zacatepeques has 11,000 people Santa Apollonia 17,000 people Santa Maria Visitacion 5,000 people Concepcion 7,000 people Santa Ana Sembajal 14,000 people Santa Carina Palapo 6,000 people Santa Carina La Laguna 8,000 people Sibenal 20,000 people And Rio Blanco 10,000 people So what about actual crime statistics in these little towns?

[27:12] First let's talk about a small town That on an annual basis has virtually no crime Hard to believe with a country so tainted with bad press like Guatemala But this town's not the only one, not by a long shot So first let's talk about this little town called Aguas Calientes Meaning hot water in English To be continued, next show You've been listening to The Expat Files Living in Latin America Coming to you twice a week from somewhere south of the border Email me Theexpatfiles at gmail.com And don't forget to check out expatwisdom.com To sign up for your free reports on Latin America See you next time, nos vemos

Reserve Your Seminar Seat
0:000:00
🔊