Why do most Hispanics stay poor?
At our LinkedIn group discussion a member expressed his disagreement with my ealier post Latinos Are Too Focused on Material Success stating that “the numbers do not show it.” That is true. Interestingly, I just came across an article I wrote for Quirks Magazine, which was published in April, 1998. Eleven years later some of what I wrote there still applies. Here is a segment of the article pertaining to why Hispanics stay poor. For the whole article please go here.
The U.S. is the land of opportunity. Over the years, immigrants from all over the world have come to this country and managed to work hard to improve their economic situation. What is different about the Hispanic immigrants? To answer that question, you have to take into account the fact that the times have changed. Today ’s immigrants do not arrive here by breaking all ties with their homelands. While just a century ago people would take a long boat trip across the Atlantic to get to this country, today’s immigrants can move here overnight and go back to visit the following week. They never have to lose touch. From the airlines to the telephone to the television and even the Internet, new immigrants can keep in touch with their homeland.
Even in this country, the Hispanic community keeps in touch by creating its own home away from home. Hispanics have Spanish television, can read most product labels in Spanish, can easily purchase their favorite ethnic food at the local supermarket or bodega, and can socialize with others who speak their language and share their culture. This is indeed very different from the old melting pot culture where immigrants forced their children to forget their mother tongue and become part of the new culture. Hispanics place a high value on being able to maintain their customs, language, and culture. The U.S. freedom allows it, and it is indeed attractive. Yet, I argue that not “melting into the pot” creates a difficult situation that leads to lower income.
By insisting on being “different,” Latinos are promoting discrimination. When Puerto Ricans wear their flag on everything from their cars to their T-shirts, they are making a statement that says, “I am proud of my heritage,” but it is often read as “I am not part of this country.” That leads to a common reaction: “Well, get the heck out!” which is also known as discrimination. Discrimination often leads to a lower income. This is especially true of Hispanic communities that consist of individuals with minimal education and labor skills. These communities depend on the jobs provided by members of an outside community. The number of Hispanic businesses that provide job opportunities to their own community is extremely low, compared to other ethnic groups like Asian Americans. There are exceptions. One, of course, is the Cuban community in Miami, whose Hispanic-owned businesses hire four times as many people than Hispanic- owned businesses in New York City.
Besides discrimination, there are other factors that affect income. To keep their culture, Hispanics often move near other Hispanics in typical Latino neighborhoods. Some of these neighborhoods have deteriorated — victims of crime and drug problems. To complicate matters, public education systems in many Latino neighborhoods are overcrowded and underfinanced. As a result, Hispanic young people are not receiving an equal education. Since English is not the language of choice in most Hispanic neighborhoods, and the schools are not adequate, many Latinos are not proficient enough in English to obtain decent employment. What is worse, because Spanish is not taught in school, many Hispanic Americans grow up not knowing how to read and write in Spanish.
Despite my contention that Latinos would be better off financially if they tried to blend into the American culture, I don ’ t agree with that approach. Looking at the situation from an economic standpoint you must give value to the desire of Hispanics to keep their customs, language and culture. I argue that this value is so high that it justifies whatever negative effects may occur — discrimination, lower income, or even bad neighborhoods. Since the Hispanic population continues to grow at a higher rate than any other minority group, these problems will eventually disappear. Even today, Spanish culture is quickly becoming ingrained into the American culture. Tacos are now as popular as hot dogs and hamburgers in the typical American diet, and Spanish words are becoming part of the American language — ¿Comprende?

Over the past 25 years I have spoken to thousands of Latinos. As a professional interviewer specializing in the U.S. Hispanic market, my job is to ask questions and to listen carefully. I have heard Latinos speak of their dreams and aspirations. Some have related stories of how they grew up in this country; often struggling to fit in. Others have spoken of what motivated their migration from Latin America; and of the difficulties, frustrations, and obstacles encountered in their quest to achieve that elusive “American Dream.” The majority does not feel accomplished. Why? The sad reality is that most Latinos, and especially new Latino immigrants, are bound to have a hard time achieving their dreams because they are often too focused on achieving financial success.