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"Chili, as we know it in the U.S., cannot be found in Mexico today except in a few spots which cater to tourists. If chili had come from Mexico, it would still be there. For Mexicans, especially those of Indian ancestry, do not change their culinary customs from one generation, or even from one century, to another."

There are many legends and stories about where chili originated and it is generally thought, by most historians, that the earliest versions of chili were made by the very poorest people. J. C. Clopper, the first American known to have remarked about San Antonio's chili carne, wrote in 1926:

"When they have to pay for their meat in the market, a very little is made to suffice for a family; this is generally into a kind of hash with nearly as many peppers as there are pieces of meat - this is all stewed together."

If there is any doubt about what the Mexicans think about chili, the Diccionario de Mejicanismos, published in 1959, defines chili con carne as (roughly translated):

“detestable food passing itself off as Mexican, sold in the U.S. from Texas to New York.”

 

 

From http://whatscookingamerica.net/