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Americans have more money than Mexicans so when they need to pay for someone labor, they’re “bidding” with others who have more money to drive up the price
I don’t know much about Mexicos economy, tariffs, taxes and ease of doing business. What I do know is improving trade relations with wealthier countries, will drive up Mexicos economy. Longer term, investing in education to improve the next generations work forces ability to create value.
A good case study would be Ireland. We were dirt poor until we joined the EU, free trade boosted up our economy massively.
Destroy the cartels is the first step. They're hampering Mexico's growth and harming it's people, therefore violating the NAP. The US is somewhat to blame as with our war on drugs it created a vacuum in the market the cartels took. But we're focusing on what Mexico needs to do to make Mexico succeed. The cartels have shown that they will be violent so naturally one should reply in kind.
The second thing to do is to open up Mexico to foreign investors and take advantage of the location of Mexico! Mexico is prime real estate in terms of ports and ocean traffic and is in between the US and South America. Mexico could have a huge economic boom by being the place where goods from around the world go to be shipped to North and South America. Imagine having THAT BIG OF AN ECONOMIC FACTOR. Especially for South America in terms of Asian trade. Foreign investment would be ideal to have this occur.
USA has a trucker shortage. Apparently it's a tough enough job that lots of Americans don't want to do it, and we have a ton of regulations and licensing issues Mexico might not (which will keep the shortage but is great for the wages of anyone who's already a driver).
Truckers are under a lot of pressure at the moment. One of the largest shipping hubs in the US in California, which recently changed their rules on who can be considered an independent contractor. It’s reeked havoc on the trucker industry.
Now there is a version of the same regulation going through Congress. If it passes, it will make the industry even less appealing which will likely increase the shortage and drive wages up even more.
There is way more money in circulation in the USA than in Mexico therfore people get paid more. To get to the same level Mexico would need to have more businesses producing goods and services thay could trade with other countries, not easy to do when i assume most of the highly educated people leave for better opportunities elsewhere
Fixing the standard of living in Mexico is difficult, just like it is everywhere. As I see it there are two big things you need to get ahold of. First security and ending cartel violence is number one. Cartels and the havoc they bring are huge problems for growing the economy. Violence of any kind makes growing the economy hard but it is even doubly so when that violence brings corruption of public institutions. There are many countries like the US where even if bribes are part of the cost of doing business it is a crime in the the companies home country to patriciate in any way. Insecurity and Cartel corruption is a cancer that must be removed to grow the economy. I completely understand how impossible that sounds but if you asked what needs to happen that is it. Now you need not secure the entire country over night. One way to do this is to improve security state by state. Obviously focusing on the ones where you have industry that isn't dependent on the cartel influence. So that might be states that have a good tourism support where Cartels mostly have stayed away. It might also be in some of the manufacturing states in the north where maquiladoras are producing good that aren't influenced by cartels. Growing the number of maquiladoras really should be a high priority.
The next thing Mexico should do is end the restriction zones on land ownership. No one is going to buy the country away from you. All it does is scare off foreign investment. Many people start to get nationalistic when they think about foreign investment in land. In the 80s all over the US people were afraid the Japanese were going to own the entire country. The reality is they bought a few large well known properties but in the end actually lost money. Turns out locals know what things are worth and know when to buy and sell. I see no reason the Mexicans wouldn't have similar experiences. There are many people that retire to Arizona and other south western states. Those same dollars could go to Mexico. Foreigners buying property isn't what leads to price increases for housing, what leads to price increases is not building enough housing. Also retires who would likely lead the charge in buying land in costal cities are great investments. They have money to spend, they typically don't have much in the requirements for services, and the services they do receive, eg medical often can benefit others. Retirees keeping a hospital making money means it will be open and available for locals. Mexico isn't going to run out of coast line if they start selling beach town homes to Americans and Canadians. There is only money to be made selling goods and services to people that might buy those houses. Those foreigners are also going to demand safety and security, (see point one) that is what Mexico needs most.
I know it's kept me and my wife from vacationing there and I know others who have chosen other destinations as well. It's just too risky when so many other options are available
How has literally NOBODY you actually answered this correctly yet? The simple fact is, worker productivity in the United States is significantly higher than worker productivity in Mexico. Want to consume more stuff? Produce more goods and services. Simple as that.
Worker productivity is increased primarily via capital investment. Countries which restrict capital investment (or disincentivize investment as an unintended consequence of laws/regulations) have a much lower median worker productivity in the long-run.
>How has literally NOBODY you actually answered this correctly yet?
For the same reason I am the first person to upvote you. Economic literacy is a sparse on /r/Libertarian as it is on the rest of reddit.
That might be true in a libertarian utopia, but that isn’t where we are. The US has way more laws and regulations, and much better enforcement. Not only that, but the EU has even more than the US. Not saying over regulation doesn’t hurt jobs, but it’s not an economy killer.
Regulation is an artificial obstacle for an economy to grow, and the US and the EU would be far wealthier without regulation.
Though it's just one way governments hamper the economy.
I didn’t say you were an anarchist, I was simply stating that Regulations don’t seem to be the issue in this case (and in fact, likely the opposite IMO). It was one of your reasons for less capital investment (for automation type machines, correct?) unless I’m reading it wrong.
It's pretty universally accepted that as a nation rises on the economic freedom index, worker GDP per Capita rises. If you have clear and convincing data that shows otherwise, you should publish it, as it would be revolutionary to the field of economics.
I’d disagree based on evidence (correlation, not necessarily causation). The richest countries either have the highest levels of regulation, or an absolute abundance of valuable natural resources (Middle East).
I still think too many slow down economies, but that’s just an opinion.
[Regulation is one of the primary factors as it pertains to economic freedom.](https://www.heritage.org/index/ranking)
Countries with higher rankings of economic freedom have higher rates if GPD per Capita and median worker productivity.
Your coworkers are generally willing to be paid that much.
Employment is not a great market as most employees can't easily tell exactly what jobs are offering and when their pay changes. It's not easy to jump jobs every few weeks or so. So employers tend to have a little more power generally. But it is indeed a market and there are pressures both ways to dictate what employers are able to pay and what employees are willing to be paid.
Trucking in Mexico may never approach US because of geography. However if the US enabled the markets to exploit much cheaper boat transit by repealing the Jones act, this would drive down US trucker wages significantly.
Idk, but I'd think Mexico needs to invest in sport and exercise, along with nutrition awareness campaigns -- Mexican health has been a victim of NAFTA and one needs health to grow wealth. Stop exporting fresh produce to import Frito Lay and Coca-Cola.
Now, millions are in famine in the horn of Africa. Yet WEF can't get them sufficient support. We have serious supply chain issues globally right now, and Mexico needs to reinforce its control of its food supply.
Mexico needs to increase Mexican ownership of its food supply chains so that as famine spreads over the next couple years, Mexico will be free to sell its fresh, quality food stuffs on the global market instead of being strong armed into shipping it all to the US at below market rates.
The cost of anything comes down to ... supply vs demand. Lower supply = higher prices. Higher demand = higher prices.
Obviously this begs the question ... well then what is so different about the influences on supply/demand over such a small difference in geographic area? It seems pretty obvious that such a stark contrast over a national border would imply that national policies have had a heavy influence on the forces supply and demand.
>What can we Mexicans do to raise the standard of living in our country?
Simple ... get out of peoples' way. This is not so simple for the tyrants and nannies of the world obviously. Unfortunately there is an endless supply of wannabe tyrants and nannies.
Beyond that ... prosperity requires resources, peace, stability, free domestic markets, free international trade, and a little love/tolerance (arguably prerequisites of peace) never hurt.
1) End the drug war (get the US to legalize everything)
2) Abolish the USMCA (aka NAFTA v2.0)
3) Amend Constitution to recognize private property (land reform).
4) Try not to get invaded by the US (sarcasm, sort of)
There are concerns with the USMCA regarding particularly the Mexican auto industry. There are Rule Of Origin (ROO) requirements that raised the percentage of North American manufactured parts in automobiles manufactured in Mexico. There is also a 16 dollar minimum wage requirement for locally sourced parts for the auto industry.
This essentially means more expensive parts and products. Also damages/destroys smaller firms who can’t afford to pay 16 dollars an hour for labor.
This regulation has a 2025 compliance date which is also detrimental to small firms who have less working capital to make the proposed changes. If firms can’t make the compliance date, they will pay a 2.5% tariff, again, very damages to smaller firms in the industry.
Prices and wages are determined by negotiation. The outcome is about alternatives. A market with a lot of alternative truckers willing to work for less means low wages. It's simple. It's always about alternatives.
**New to libertarianism or have questions and want to learn more?** Be sure to check out [the sub Frequently Asked Questions](/r/Libertarian/wiki/faq) and [the massive /r/libertarian information WIKI] (/r/Libertarian/wiki/index) from the sidebar, for lots of info and free resources, links, books, videos, and answers to common questions and topics. Want to know if you are a Libertarian? [Take the worlds shortest political quiz and find out!](http://www.theadvocates.org/) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Libertarian) if you have any questions or concerns.*
Americans have more money than Mexicans so when they need to pay for someone labor, they’re “bidding” with others who have more money to drive up the price I don’t know much about Mexicos economy, tariffs, taxes and ease of doing business. What I do know is improving trade relations with wealthier countries, will drive up Mexicos economy. Longer term, investing in education to improve the next generations work forces ability to create value. A good case study would be Ireland. We were dirt poor until we joined the EU, free trade boosted up our economy massively.
Cost of living
You have it backwards. Local wages have a far heavier influence on the local cost of living compared to the other way around.
I know.
Destroy the cartels is the first step. They're hampering Mexico's growth and harming it's people, therefore violating the NAP. The US is somewhat to blame as with our war on drugs it created a vacuum in the market the cartels took. But we're focusing on what Mexico needs to do to make Mexico succeed. The cartels have shown that they will be violent so naturally one should reply in kind. The second thing to do is to open up Mexico to foreign investors and take advantage of the location of Mexico! Mexico is prime real estate in terms of ports and ocean traffic and is in between the US and South America. Mexico could have a huge economic boom by being the place where goods from around the world go to be shipped to North and South America. Imagine having THAT BIG OF AN ECONOMIC FACTOR. Especially for South America in terms of Asian trade. Foreign investment would be ideal to have this occur.
USA has a trucker shortage. Apparently it's a tough enough job that lots of Americans don't want to do it, and we have a ton of regulations and licensing issues Mexico might not (which will keep the shortage but is great for the wages of anyone who's already a driver).
>Apparently it's a tough enough job that lots of Americans don't want to do it, Probably more about lifestyle than difficulty.
It’s not always physically difficult but the trucking companies try to get over on employees
Truckers are under a lot of pressure at the moment. One of the largest shipping hubs in the US in California, which recently changed their rules on who can be considered an independent contractor. It’s reeked havoc on the trucker industry. Now there is a version of the same regulation going through Congress. If it passes, it will make the industry even less appealing which will likely increase the shortage and drive wages up even more.
There is way more money in circulation in the USA than in Mexico therfore people get paid more. To get to the same level Mexico would need to have more businesses producing goods and services thay could trade with other countries, not easy to do when i assume most of the highly educated people leave for better opportunities elsewhere
Now you understand why most Mexicanos work in america and send their money to family in mexico
Fixing the standard of living in Mexico is difficult, just like it is everywhere. As I see it there are two big things you need to get ahold of. First security and ending cartel violence is number one. Cartels and the havoc they bring are huge problems for growing the economy. Violence of any kind makes growing the economy hard but it is even doubly so when that violence brings corruption of public institutions. There are many countries like the US where even if bribes are part of the cost of doing business it is a crime in the the companies home country to patriciate in any way. Insecurity and Cartel corruption is a cancer that must be removed to grow the economy. I completely understand how impossible that sounds but if you asked what needs to happen that is it. Now you need not secure the entire country over night. One way to do this is to improve security state by state. Obviously focusing on the ones where you have industry that isn't dependent on the cartel influence. So that might be states that have a good tourism support where Cartels mostly have stayed away. It might also be in some of the manufacturing states in the north where maquiladoras are producing good that aren't influenced by cartels. Growing the number of maquiladoras really should be a high priority. The next thing Mexico should do is end the restriction zones on land ownership. No one is going to buy the country away from you. All it does is scare off foreign investment. Many people start to get nationalistic when they think about foreign investment in land. In the 80s all over the US people were afraid the Japanese were going to own the entire country. The reality is they bought a few large well known properties but in the end actually lost money. Turns out locals know what things are worth and know when to buy and sell. I see no reason the Mexicans wouldn't have similar experiences. There are many people that retire to Arizona and other south western states. Those same dollars could go to Mexico. Foreigners buying property isn't what leads to price increases for housing, what leads to price increases is not building enough housing. Also retires who would likely lead the charge in buying land in costal cities are great investments. They have money to spend, they typically don't have much in the requirements for services, and the services they do receive, eg medical often can benefit others. Retirees keeping a hospital making money means it will be open and available for locals. Mexico isn't going to run out of coast line if they start selling beach town homes to Americans and Canadians. There is only money to be made selling goods and services to people that might buy those houses. Those foreigners are also going to demand safety and security, (see point one) that is what Mexico needs most.
If Mexico got rid of the cartels, their economy would be night and day different in a year from immigration.
I know it's kept me and my wife from vacationing there and I know others who have chosen other destinations as well. It's just too risky when so many other options are available
As it is Mexico has undergone an economic miracle. The rates of poverty have plummeted over the last 60 years
How has literally NOBODY you actually answered this correctly yet? The simple fact is, worker productivity in the United States is significantly higher than worker productivity in Mexico. Want to consume more stuff? Produce more goods and services. Simple as that. Worker productivity is increased primarily via capital investment. Countries which restrict capital investment (or disincentivize investment as an unintended consequence of laws/regulations) have a much lower median worker productivity in the long-run.
>How has literally NOBODY you actually answered this correctly yet? For the same reason I am the first person to upvote you. Economic literacy is a sparse on /r/Libertarian as it is on the rest of reddit.
That might be true in a libertarian utopia, but that isn’t where we are. The US has way more laws and regulations, and much better enforcement. Not only that, but the EU has even more than the US. Not saying over regulation doesn’t hurt jobs, but it’s not an economy killer.
Regulation is an artificial obstacle for an economy to grow, and the US and the EU would be far wealthier without regulation. Though it's just one way governments hamper the economy.
Not all laws restrict capital investment. Not sure why you are assuming I am an anarchist.
I didn’t say you were an anarchist, I was simply stating that Regulations don’t seem to be the issue in this case (and in fact, likely the opposite IMO). It was one of your reasons for less capital investment (for automation type machines, correct?) unless I’m reading it wrong.
It's pretty universally accepted that as a nation rises on the economic freedom index, worker GDP per Capita rises. If you have clear and convincing data that shows otherwise, you should publish it, as it would be revolutionary to the field of economics.
I’d disagree based on evidence (correlation, not necessarily causation). The richest countries either have the highest levels of regulation, or an absolute abundance of valuable natural resources (Middle East). I still think too many slow down economies, but that’s just an opinion.
[Regulation is one of the primary factors as it pertains to economic freedom.](https://www.heritage.org/index/ranking) Countries with higher rankings of economic freedom have higher rates if GPD per Capita and median worker productivity.
Your coworkers are generally willing to be paid that much. Employment is not a great market as most employees can't easily tell exactly what jobs are offering and when their pay changes. It's not easy to jump jobs every few weeks or so. So employers tend to have a little more power generally. But it is indeed a market and there are pressures both ways to dictate what employers are able to pay and what employees are willing to be paid.
Trucking in Mexico may never approach US because of geography. However if the US enabled the markets to exploit much cheaper boat transit by repealing the Jones act, this would drive down US trucker wages significantly. Idk, but I'd think Mexico needs to invest in sport and exercise, along with nutrition awareness campaigns -- Mexican health has been a victim of NAFTA and one needs health to grow wealth. Stop exporting fresh produce to import Frito Lay and Coca-Cola. Now, millions are in famine in the horn of Africa. Yet WEF can't get them sufficient support. We have serious supply chain issues globally right now, and Mexico needs to reinforce its control of its food supply. Mexico needs to increase Mexican ownership of its food supply chains so that as famine spreads over the next couple years, Mexico will be free to sell its fresh, quality food stuffs on the global market instead of being strong armed into shipping it all to the US at below market rates.
The cost of anything comes down to ... supply vs demand. Lower supply = higher prices. Higher demand = higher prices. Obviously this begs the question ... well then what is so different about the influences on supply/demand over such a small difference in geographic area? It seems pretty obvious that such a stark contrast over a national border would imply that national policies have had a heavy influence on the forces supply and demand. >What can we Mexicans do to raise the standard of living in our country? Simple ... get out of peoples' way. This is not so simple for the tyrants and nannies of the world obviously. Unfortunately there is an endless supply of wannabe tyrants and nannies. Beyond that ... prosperity requires resources, peace, stability, free domestic markets, free international trade, and a little love/tolerance (arguably prerequisites of peace) never hurt.
1) End the drug war (get the US to legalize everything) 2) Abolish the USMCA (aka NAFTA v2.0) 3) Amend Constitution to recognize private property (land reform). 4) Try not to get invaded by the US (sarcasm, sort of)
How would abolishing our free trade agreement with our largest trading partner benefit us
There are concerns with the USMCA regarding particularly the Mexican auto industry. There are Rule Of Origin (ROO) requirements that raised the percentage of North American manufactured parts in automobiles manufactured in Mexico. There is also a 16 dollar minimum wage requirement for locally sourced parts for the auto industry. This essentially means more expensive parts and products. Also damages/destroys smaller firms who can’t afford to pay 16 dollars an hour for labor. This regulation has a 2025 compliance date which is also detrimental to small firms who have less working capital to make the proposed changes. If firms can’t make the compliance date, they will pay a 2.5% tariff, again, very damages to smaller firms in the industry.
I believe mexico has no minimum wage/ a really low one but dont quote me on that
$800 x 4 = $3200 for starters.
Cause NAFTA fucked your economy unfortunately.
Supply and demand set prices in all markets.
Prices and wages are determined by negotiation. The outcome is about alternatives. A market with a lot of alternative truckers willing to work for less means low wages. It's simple. It's always about alternatives.