The Informal and Underground Economy of the South Texas Border: The Informal and Underground Economy of the South Texas Border

1. Culture, Structure, and the South Texas–Northern Mexico Border Economy

I am a very social person. I do business with different kinds of people. I used to sell clothes at my house in Mexico. I used to buy cars and resell them without any titles because they were stolen. I had a bar where I could sell beer to anyone who could afford it. I opened up a bar in Texas, but could only sell beer or alcohol to people over 21. I couldn’t sell clothes at my house anymore. They fined me for not having a permit . All the businesses there have to be legal, and there is no way you can make money your own way in the United States. That is why I moved back to Mexico. Now I can do business any way I want, so I only go back there once in a while. The United States is OK for people who like being controlled, but not for me. —Antonio Aguilar,1 a Mexican citizen who lived for several years in the United States, explains why he returned to Mexico Introduction Antonio is a man who has engaged in unregulated and illegal economic activities on both sides of the border. He skirts regulations not only to make money, but also to be free from governmental controls. He is not alone. Many people in the South Texas–Northern Mexico region take part in the informal and/or underground economy. For many, the reasons are economic—the struggle to survive. Others, like Antonio, want freedom from government controls. The South Texas border offers informal and underground economic opportunities that are quite different from those available in other parts of either the United States or Mexico. What is the nature of this econCHAPTER 1 Culture, Structure, and the South Texas– Northern Mexico Border Economy Richardson-final.indb 18 Richardson-final.indb 18 8/7/12 10:30:11 PM 8/7/12 10:30:11 PM Culture, Structure, and the Border Economy 19 omy, and what factors help explain why informality is so pervasive in the South Texas borderlands? What are the effects of a very robust informal economy in this region of the United States? The Informal and Underground Economy of the South Texas Border The informal economy,2 according to economic and sociological conceptualizations , consists of work that is in itself legal but that avoids government regulation, oversight, and/or taxation. While Antonio lived in Texas, his informal work included selling clothes from his home without a permit and selling liquor without a license. Other informal jobs common to South Texas include street vendors, day workers, flea market concessionaires, undocumented workers, people doing extra work “on the side,” and even contractors doing unreported “cash only” work. This is further illustrated in the case of Rosita Alonso, who has personally experienced many of the nuances of the informal and underground economy of the South Texas border. My husband never worked; I was the one working. I have three children. Their father does not send them any money because he’s in jail for drug trafficking. Now I clean motel rooms during the week, and on weekends I sell plants at the flea market. Sometimes I don’t make any money, so I have to go to Reynosa and borrow money. This lady there lends me money, but I have to pay her monthly interest. I get food stamps to feed the children. My comadre [female friend] next door is separated also, so we help each other in any way we can.—Rosita Alonso The complexities of the informal border environment illustrated by Rosita’s story include engaging in informal economic activities to survive , having a husband in jail for underground (criminal) drug activity, and needing to use varied, informal support systems (e.g., cross-border informal financing and an informal neighborhood assistance network). Rosita’s informal work includes her unreported sales at the flea market and her work in cleaning motel rooms (for cash) during the week. Informal work activity is not said to be criminal since the work itself is legal , but it is generally undertaken outside the scrutiny and legal bounds of government-mandated regulation and legislation.3 Thus, a street vendor selling cascarones (eggshells filled with confetti, popular around EasRichardson -final.indb 19 Richardson-final.indb 19 8/7/12 10:30:11 PM 8/7/12 10:30:11 PM 20 Culture, Structure, and the Border Economy ter) might be...