Wages and income in Mexico after NAFTA
With the induction of NAFTA in 1994 Mexico has experienced a slight increase within unemployment and a decrease within wages. Seven years since NAFTA Mexican workers have not seen the benefits from NAFTA nor any of the stated goals that were suppose to be attained through NAFTA. By 1998 there was a decline in salaried jobs by 25%, while self employed jobs have declined by 40%. Mexico has also developed a large trade deficit with the rest of the world. While they have created a large trade surplus with the U.S. Mexico's slow decline could be due to different investments in the manufacturing industries, reinvested profits, and stock market investments. The manufacturing industries is one of the few that have profited from NAFTA in Mexico. It still remains the same story the rich get richer while the poor gets poorer.
http://www.epinet.org/content.cfm/briefingpapers_nafta01_mx
http://www.epinet.org/content.cfm/briefingpapers_nafta01_mx
6 Comments:
At 3:40 PM, Sean said…
Increases in the unemployment rate may signal a weak economy. However, looking at wages alone may be misleading. If prices are falling too, then real wages may be increasing.
At 5:25 PM, laboz00 said…
This post has been removed by the author.
At 5:38 PM, laboz00 said…
It seems as though that NAFTA must have a tremendous effect on Mexico has a whole. The effect can be see here all around us. The flood of Mexican workers continues to pour into the U.S. taking job away from U.S. citizens. Whatever the policy states in NAFTA concerning this matter needs to be corrected before the already declining job market increases.
At 10:31 PM, Carol Fynan said…
For one thing, the Mexican people coming across the borders are not really taking jobs away from us. They are doing job that we Americans do not want to do because they envolve too much labor and hard work.
At 6:38 PM, tasha said…
The fact that Mexico has not done as well as Canada and the U.S. under this agreement is troublesome. Could it be that they're not getting their fair share of opportunities? Or could it be that the country is not making the best decisions financially?
At 9:07 PM, Stephanie Mc said…
It seems to me that Mexico should be profiting more from the industries that have gone there for cheaper labor. I guess that is why the manufacturing industries have not been hurt like the others. I would be interested to find out more of the reasons why Mexico is not benefiting from NAFTA, but the U.S. is.
Post a Comment
<< Home