Mexicans have been racialized as an inferior race by Anglo Americans. By associating Mexicans as an inferior race, Anglo Americans are comfortable in treating them with low wages, hard labor and non-progressive jobs. There has been much tension between Mexicans and Americans and after the war, two major groups of immigrants began coming into Southern Texas. One group stemming from the U.S. and Europe and the other from down South Mexico. The aftermath of the war brought a lot of changes for Texas especially the creation of a new ethnic division of labor. In their article, "Lost Dreams and Found Fortunes," professors De Leon and Stewart chronicle the creation of an ethnic division of labor in the years following the Mexican War of 1849. Mexicans took the non-progressive jobs while Americans placed themselves in key positions that would later become more powerful and dominant. The ethnic divisions of labor had a historical impact on everyone due to the transition from an agricultural to an industrialized state. .
The division of labor started after the Mexican War and it was created out of racism, discrimination, and changes of land ownership. After the U.S/Mexican War, much animosity existed between the two races. The war left a permanent and lasting impression on Texas which favored the Americans over Texas. An American military presence established in Texas gave somewhat of a political structure thus giving Anglos power while leaving Mexicans with very minimal authority. "Though Mexicans were able to adjust to the new political system and participate in it, they could do so only to the extent that participation did not threaten the white political base." This political power that the Anglos held gave them the upper hand over land ownership. Anglos began taking over the lands in Texas that were originally owned by whites. This created more tension between the Anglos and Mexicans because Mexicans couldn't fight to retrieve their land.