Latinx populations help the US economy to thrive

Story and photo by ZANE LAW

In recent years, with the presidency change and promises of a wall between bordering lands, southern immigrants have been the hot point of numerous conversations. While some argue that immigrants hurt the United States economy by stealing jobs and not paying taxes, other credible folks think just the opposite of the situation.

In regard to stealing jobs from American-born individuals, Alex Guzman says the community members create their own jobs and support each other as a collective Latinx whole. Being the CEO of the Utah Hispanic Chamber of Commerce, Guzman knows the working-class population and estimates that as many as 35,000 Hispanic individuals own businesses in Utah.

Whether documented or not, Guzman says they open businesses “not to be entrepreneurs, but to survive.” Those who cannot find jobs due to the lack of a social security number, discrimination, little education, and other reasons are able to open businesses and provide for their expanding families. These business owners are then able to pay it back to fellow immigrants by offering new jobs and opportunities to thousands of other people in similar situations.

While the community creates jobs for themselves and others by having a high number of business owners, another overlooked aspect of immigrant workers is the fact that they are willing to do whatever it takes to provide.

According to a talk at the Center for Latin American Studies at UC Berkeley, immigrants are more willing to move for work than native folk. Giovanni Peri explains that “immigrants’ willingness to move helps slow wage decline in stagnant regions and contributes to economic growth in booming ones.” They move away from regions that do not have enough jobs, allowing the locals to take the few available spots. Immigrants then move to bustling areas, with high demands for work, and are able to fill the positions that owners want to be filled, Peri says.

Alejandro Gutierrez, a Mexican-born man of 45, did just that. He originally moved to a town in California, but as the job market began to fill up, he found his way to Salt Lake City. Gutierrez now works as a dishwasher at the University of Utah’s Peterson Heritage Center, pays his taxes, and adds money to the economy.

While Guzman, Gutierrez, and others within the Latinx community create jobs and work hard for their money, Guzman says that the community also contributes plenty of money to the churning economic machine.

“We live la vida loca and we put our money in the market right away,” explains the enthusiastic business owner, marketing professional, and former Guatemalan senator. “La vida loca” translates to “the crazy life” and Guzman says this is the case for many Latinx individuals. They buy the foods they want, upgrade their cars, party and vacation frequently, and live carefree lives.

Guzman says the community finds it difficult to save, but he sees this as a learning experience for youth. He further backs up his lifestyle choices by saying the “spending helps to inspire a sense of generating income.” The philosophy is that when their kids see what money can bring and how much it costs to live well, they are more driven to earn for themselves.

These spending habits stretch further than the immigrants who Guzman has come to know in Utah, however. Anna Chavarria, a student in Colombia, explains that she and her family have difficulties with saving as well. The family of six lives in a three-bedroom home in Medellin, Colombia, but they enjoy things like motorcycles, fine dining, and huge block parties.

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Anna Chavarria enjoys “la vida loca” in the sand dunes of Huacachina, Peru.

Chavarria says in a phone interview they would not cut the extravagance out for a more spacious house, explaining that they “live a fast-paced and fun life, and a squished home simply adds to the closeness of our family.” Both her mom and brother work seven days a week to provide such a life and she says she and her family would work just as hard if they lived in America. Chavarria has been in the Visa application process for approximately two years and says she has much to offer to the U.S.

Because Latinx community members often spend as fast as they earn, Guzman says the Latinx community is a major target for marketing as well. With his 25 years of experience in the field, he has found that the return on investment for this group is large.

Spanish-speaking outlets like Telemundo are greatly cheaper to advertise on than English-speaking sources. Then once the advertisements have done their job, Guzman also says Latinx people are very loyal to the brands they buy from. Companies are able to advertise their brands for less money, keep their customers for longer periods of time, and have peace of mind knowing the community will spend for as long as a paycheck is coming in.

The state of Utah and the country as a whole are filled with people similar to the likes of Alex Guzman, Alejandro Gutierrez, and the Chavarria family. According to a June 2018 article in the Salt Lake Tribune, the Latinx population even makes up at least 14 percent of the state’s residents. They are not an anomaly and are a community that will, no matter what, contribute to and affect the economy.