Bulletins and News Discussion from June 3rd to June 9th, 2024 - Morena Reigns More - COTW: Mexico
Bulletins and News Discussion from June 3rd to June 9th, 2024 - Morena Reigns More - COTW: Mexico
Much of the preamble has been sourced from Michael Roberts' recent analysis of Mexico.
Claudia Sheinbaum, part of the left-wing and populist Morena party to which AMLO also belongs, is now the first woman to ascend to the Mexican presidency. She is also a climate/energy scientist and was previously mayor of Mexico City. Results indicate that she has won with approximately 60% of the vote, which would be the highest vote percentage in Mexican history.
AMLO's presidency has been generally successful. He campaigned on reducing violence inside Mexico, and while this has technically occurred if measured from 2018, homicides are still considerably higher than in 2010. This is largely due to warring drug cartels, which are more reflective of the United States and its rise in drug addiction and thus imports from Mexico. He also campaigned on reducing corruption, which he also kinda has, and also on reducing income inequality, which he also kinda has. The overall figures don't show massive budges in income inequality, but the minimum wage has risen by 82% and manufacturing wage have risen 27%, and this plus other social programs has lifted 9 million Mexicans out of extreme poverty - a good achievement - but not much further than that, with poverty rates still above the Latin American average. Unemployment is officially at record lows, but much of this job growth has been in the informal sector.
The Mexican economy suffered greatly during the pandemic, and while growth since then has been pretty decent, the economy is still below where it was in 2018. As Mexican capitalists do not pay much in taxes, AMLO's programs have required large budget deficits and borrowing. These capitalists are, of course, not doing many productive investments and thus there is not much productivity growth; productivity has been more-or-less stagnant for two decades. The reason why Mexican capitalists are not investing is because of the major decline in profitability since the 1990s - there is no reason to invest if your money is at major risk of not making a profit. Therefore, they have followed the trend of other national capitalists of investing in real estate and speculation, particularly in American companies.
Since NAFTA/USMCA, Mexico has become increasingly dependent on the United States for a location for its exports, while the US has exploited cheap labour in Mexico. Additionally, with the anti-Chinese sanctions increasingly put in place by the US, Mexico has become one of several conduits for China to redirect its goods so that they can still reach American markets. This has allowed Mexico to have an essentially balanced trade account and keep the peso relatively strong against the dollar.
Mexico's limited fortunes will likely decline from here as the US economy continues to slow. If Trump is elected, he may decree protectionist policies which will hit a US-reliant Mexico quite hard. Additionally, industrial production has recently declined and retail spending is also down. AMLO's presidency was genuinely beneficial for the poorest 50%, but the policies he created failed to really change the fundamentals of the economy. He relied on the private sector rather than the public sector. This is not entirely his fault - if he had tried to do anything terribly transformative, Mexico would have probably been hit hard with consequences by the US and simultaneously faced a domestic revolt by Mexican capitalists. There were and are already threats of outright invasion in response to the limited things AMLO has already done.
In an increasingly multipolar future in which America becomes weaker and weaker, it's very possible that Mexico's reliance on the US will decrease, allowing parties to be more radical without facing the possibility of facing crippling sanctions like Venezuela. However, Mexico's sheer proximity to the US means that they might be among the last countries to break free of American influence, as the US will continue to bitterly resist any attempt to break down the Monroe Doctrine long after it loses Asia, Europe, and Africa. So, it seems likely that Sheinbaum may soon find herself in a situation where she is forced by capitalists to implement fiscal austerity regardless of her intentions, which is equivalent to a declaration of war on the working class. What happens then is anybody's guess.
The COTW (Country of the Week) label is designed to spur discussion and debate about a specific country every week in order to help the community gain greater understanding of the domestic situation of often-understudied nations. If you've wanted to talk about the country or share your experiences, but have never found a relevant place to do so, now is your chance! However, don't worry - this is still a general news megathread where you can post about ongoing events from any country.
The Country of the Week is Mexico! Feel free to chime in with books, essays, longform articles, even stories and anecdotes or rants. More detail here.
Please check out the HexAtlas!
The bulletins site is here!
The RSS feed is here.
Last week's thread is here.