Economic Contributions of Mexican Americans in Minnesota

Bruce P. Corrie, PhD corrie@csp.edu The economic contribution of Mexican Americans to the Minnesotan economy can be documented in four main areas:

• As consumers of goods and services
• As workers
• As business owners and employers, and
• As tax payers

Further, the Minnesotan economy is increasingly being tied with the Mexican economy through trade. Below are some data on the economic contributions of Mexican Americans to the economy of Minnesota. Thanks to Readus Fletcher of the City of Saint Paul’s Minority Business Development and Retention department for assistance on this project.

• Mexican Americans have an estimated buying power of $1.1 billion.
• According to the Economic Census 1997, there were over a 1000 Mexican American firms in Minnesota with 213 million dollars in sales, employing between 2500 to 4900 people.
• According to Census 2000 there were 38, 555 Mexican American workers in Minnesota.
• 92 percent of Mexican American households in Minnesota did not receive any social security income – they were net contributors to the social security fund (Census 2000).
• 92 percent of Mexican Americans households in Minnesota reported no public assistance income according to Census 2000.
• Mexican Americans in Minnesota paid 8.2 million dollars in real estate taxes according to Census 2000.
• Mexican Americans in Minnesota paid 7.2 million dollars in rent according to Census 2000.
• Latino immigrant labor contributes about $480 million in annual value added to the economy of South Central Minnesota, including an additional $45 million in state and local tax revenue (Kielkopf, 2000)
• In the following 15 counties Mexican American buying power ranged from 10 to 46 million dollars: St. Louis, Mcleod, Clay, Stearns, Carver, Wantonwan, Kandiyohi, Mower, Freeborn, Scott, Nobles, Olmsted, Rice, Anoka and Washington.
• Mexican American buying power was an estimated 99 million dollars in Dakota County, 237 million dollars in Ramsey County and 364 million dollars in Hennepin County.
• In the following 19 cities in Minnesota Mexican American buying power ranged between 10 and 23 million dollars: Woodbury, Northfield, Maplewood, St. Louis Park, Plymouth, Burnsville, Faribault, Inver Grove Heights, Eagan, South Saint Paul, Bloomington, Willmar, Albert Lea, Austin, Rochester, Brooklyn Park, West Saint Paul, Worthington and Richfield.
• In Minneapolis Mexican American buying power is an estimated 215 million dollars and in Saint Paul an estimated 189 million dollars.
• In 2004, total value of Minnesota Mexico trade (exports and Imports) was almost $1.5 billion dollars. (Source: Bureau of Transportation Statistics)
• In 2004, Mexico was among the top 10 export markets for Minnesota. Exports to Mexico grew by 42 percent – much higher than the national average. (Source: DEED)