Business

When the Mexican Rich Get Richer, The Poor Come North

When the Mexican Rich Get Richer, The Poor Come North

LatinaLista — So what if we build a 30-foot, double-steel, reinforced fence at the border with Mexico and do random worksite raids gathering hundreds of undocumented immigrants and filling planes and buses to deport them en masse back across the border?
Will that stop the desperate attempts to reach "El Norte?"
Well, according to an article in Canada's Globe and Mail, not likely until one major thing happens — the rich in Mexico decide to share.


Economists evaluating the Mexican economy note that economic growth has only risen in the past 20 years "slightly above 2%."

At this rate, the gross domestic product (GDP) per capita will reach US$14,764 by the year 2028. In contrast, China's GDP per capita, which right now is less than $6,500 , will be at US$39,000.
Miguel Messmacher, Mexico's Finance Ministry's chief of economic planning, blames the neglible growth on the fact that over the last 25 years "productivity growth has been zero in Mexico."
Why?
Because of a worst case scenario between the Have's and the Have-nots.
Wealth in Mexico is concentrated in the hands of the few — the elite of the country who have basically created monopoly empires that squeeze out not just the competition, but any chance for technological innovation and increases in productivity.
Among these wealthy individuals who have such a stranglehold on the economic future of Mexico are Carlos Slim, who took over Bill Gates' position as the world's richest man and holds a monopoly on the telephone system and Maria Aramburuzabala, Mexico's richest woman whose Grupo Modelo is Mexico's largest brewer and responsible for 60% of the country's beer sales.
These days, if Maria Aramburuzabala gets tired of spelling her long last name, she can just use her American husband's last name - it's shorter — Garza, as in Tony Garza, as in the U.S. Ambassador to Mexico.

U.S. Ambassador to Mexico Tony Garza with wife Maria Aramburuzabala
The economists say that if Slim and Aramburuzabala Garza don't start sharing the wealth and more competition is allowed into the marketplace, prices will just remain high for Mexican consumers and there will be little chance for productivity growth which means the jobs that would generate that productivity won't be created.

And when there are no jobs, well the north doesn't look that cold after all.

Business

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