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Remittance Economics 101 for Populist Politicians

Around 1900, many claimed that Italian immigrants were harming the US by sending money abroad. All the way back to 1728, Jonathan Swift believed that outflows of money hurt Ireland. The idea keeps coming back because, if you think about it for a minute, it makes sense. Money buys stuff, and if it buys Mexican stuff, it’s not buying American stuff. But if you think about it for one more minute, it falls apart. Here is a basic course in the economics of remittances for populist politicians.