Chapter 4. The Profits in Poverty
Mexico is an upper middle class country. Yet, there is a lot of poverty in Mexico. Poverty is Mexico’s most profitable asset.
The Mexican oligarchy creates poverty to export to the United States for economic and political reasons.
The oligarchy that controls the political system also controls economic production, infrastructure, communications, transportation, entertainment, food, apparel, etc. It is impossible for any Mexican to purchase anything without contributing to the profits of the oligarchy. The oligarchy grows richer, the poor grow poorer.
As illustrated in Chapter 3, communication is a monopoly in Mexico. For every Mexican that moves to the United States, the monopoly of Carlos Slim profits. American communications companies profit also.
The low wages paid to Mexican workers in the auto industry siphon thousands of jobs from America. Both, shareholders of American companies and the Mexican oligarchy benefit from the exploitation of the Mexican workers. There are nineteen car models made in Mexico sold in the United States. More bleeding.
Remittances to families.
Remittances to Mexican families average 24 billion dollars per year. The United States needs these funds for investment. America receives nothing in return. Instead, America bleeds.
Remittances to the Mexican government.
Unbelievable! The Mexican government has cajoled those same Mexicans who it has pushed to the United States, to send money to it. A devious method to bleed more money from America to deliver to the Mexican oligarchy.
U.S. subsidy payments to the Mexican government.
This is preposterous! American taxpayers are paying the Mexican government, so that the Mexican government acts with decency towards its own people! Under the Merida Initiative, the U.S. government will pay $2.3 billion to Mexico.