Acton Institute Powerblog

The Long Arm of Corruption

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As the immigration debate continues, commentators dig deeper in the search for the “sources of the problem.” Many have rightly pointed out that a healthier Mexican economy would alleviate the need that spurs many Mexicans to seek financial recourse across the border. Whatever one’s views on the current debate, we ought to be able to agree that a more prosperous Mexico would be beneficial for everyone. But then others have correctly noted that talk about the Mexican economy is really a diversion from the US immigration reform issue: We need to figure out what to do about the large number of illegal immigrants currently here regardless of what happens in the Mexican economy.

Nonetheless, for anyone concerned about Mexicans, Americans, and Mexican-Americans, the issue of the Mexican economy is an important one. And on that issue, William P. Kucewicz offers a helpful analysis at NRO. I wanted to focus on one extraordinary line at the end of the piece:

Another analysis found Mexico’s level of government corruption has the same negative effect on inward foreign direct investment as raising the marginal tax rate by 42 percentage points.

Sam Gregg and Osvaldo Schenone wrote a while back about the pernicious effects of corruption in their contribution to Acton’s Christian Social Thought Series. Kucewicz’s citation above dramatically illustrates the impact that moral turpitude can have on economic wellbeing. No single magic bullet can bring prosperity to Mexico or anywhere else, of course. But any progress down that road will have to involve coming to terms with corruption, the long arm of which erodes the common good in diverse and significant ways—among them compelling migrants to leave their homelands.

Kevin Schmiesing Kevin Schmiesing, Ph.D., is a research fellow for the research department at the Acton Institute. He is a frequent writer on Catholic social thought and economics, is the author of American Catholic Intellectuals, 1895-1955 (Edwin Mellen Press, 2002) and is most recently the author of Within the Market Strife: American Catholic Economic Thought from Rerum Novarum to Vatican II (Lexington Books, 2004). Dr. Schmiesing holds a Ph.D. in American history from the University of Pennsylvania, and a B.A. in history from Franciscan University ofSteubenville. Author of Within the Market Strife and American Catholic Intellectuals, 1895—1955 (2002), he serves as Book Review Editor for the Journal of Markets & Morality. He is also executive director of CatholicHistory.net.

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