MEXICO WITHOUT LIES

CHAPTER 6 Why is it so difficult to succeed in Mexico with your own effort?

Why is it so difficult to succeed in Mexico with your own effort?

   In this chapter we will continue our search to identify the INVOLVEMENT OF THE POLITICAL SUBCULTURE WITH MEXICAN CULTURE.

It seems that we have deviated from the objective, but believe me, that is not the case.

So far, after studying and asking, the idea emerged that, what causes insecurity, unemployment and migration in Mexico, is the difficulty of being successful with the individual effort and the high interests of the loans, and that these problems exist because politicians focus on getting power instead of representing their voters.

To take these sayings seriously, it is necessary to dimension the problem and elaborate in more detail what is happening.

Mexico has a population of around 120 million, and 55 million are in poverty, that is, almost half of Mexicans do not have access to enough: nutrition, education, water, housing, medical care, security, or electricity.

Low income Mexicans are alienated from prosperous México.

They are present in the plans of politicians only when politicians need their vote.

The majority of poor Mexicans have been poor for generations and the poor population has grown because job opportunities have been growing at a lower rate than the population.

Organized crime can recruit helpers among the poor because, in addition to the lack of job opportunities, in the last thirty years, salaries for legal activities have grown less than the cost of living.

Very few fall into temptation, most continue with the only life they know, many instead of joining illegal activities prefer to migrate to the United States.

By having such a polarized society, Mexico is bound to have difficulties.

Now, let's look at the already identified origins of most problems.

CAUSE NUM. 1

DIFFICULTY TO ACHIEVE SUCCESS WITH YOUR OWN EFFORT

People start a business and get frustrated when they go bankrupt and lose work, money and dreams. When the reason for such a catastrophe is the way the government works, people face a reason to lose social commitment and respect for government and law. That is the seed of the most dangerous threat to any nation.

In Mexico all kinds of menaces come together to destroy productive projects, from cumbersome bureaucratic procedures to marches and tolerated disturbances that impede the free flow of clients and employees.

The list of aggressions against productive activities is endless; it includes bribes to become a government seller, receive payments, obtain a permit to operate, obtain a permit to build, or be saved from the discretionary application of the law.

Many have suffer these calamities, others have not, but everyone knows someone who has gone through these experiences.

Another thing that adds difficulties for Mexicans to succeed based solely on their effort and skills, is the way in which politicians understand and promote foreign investment.

They worship foreign capital as a panacea and it seems that they believe that the salvation of the country will come from abroad, so they give foreign investors everything they ask for and then more.

Politicians announce foreign investments as an achievement, and hide the fact that such investments produce more cash flow abroad than in Mexico.

Foreign investors, when building, contracting and training, buy abroad, without import taxes, all pre-operational supplies, such as construction materials, furniture, machinery, tools, instruments, computers, software and, often, office supplies. Only the wages of construction workers remain in Mexico.

Once in operation, these companies import the production inventory, and do not pay taxes if they export the final assembly.

In general, salaries of floor employees are low. The positions for supervisors and superiors are occupied mostly by expatriates.

Domestic and foreign investments in industry and agriculture that buy supplies abroad contribute to Mexico's economy with only low wages, by doing so they do not boost microeconomics and, thus, keep Mexico in the third world category.

In Mexico, foreign investment in agriculture, in addition to not promoting microeconomics is destroying it.

Foreign agricultural facilities compete with national production or introduce new products that replace traditional ones; they have the advantage of their technology to reduce the labor required and increase productivity. Small local farmers can not compete and have to sell or rent their land or stop working and migrate to large cities in México or elsewhere.

Foreign investments are an excellent tool to improve the well-being of people, yet, negotiations must guarantee fairness, and Mexican politicians have demonstrated their lack of sensibility and ability to achieve "win-win" agreements.

Some Mexicans receive excellent salaries when they work for transnational corporations, but they are so few that they do not change the figures of the economy. On the other hand, this privileged employees are influenced by a transculturation that makes them spend their money on imported products distributed by transnational franchises, so, most of their money is not driving the local economy.

Taxation is the same for Mexican and transnational corporations, both take advantage of any possibility, including abuse, to pay less taxes. Government officials grant more flexibility to transnational corporations.

The Mexican economy faces another big problem. Credit and payment practices destroy the finances of suppliers.

In accordance with accepted accounting practices, suppliers are a source of credit, yet, it is not their role to replace banks as financial institutions. In México they are forced to do it.

The government and large corporations (national and transnational) impose the due dates of payments, request bribes to expedite payments, and do not respect the due dates.

This unhealthy symbiosis of buyers and their suppliers has its origins in the greed of banks.

Banks offer loans at rates of not less than 25%.

In an economy where the most optimistic forecasts mentions a growth rate of 4%, it is difficult to imagine that any business can produce enough profits to pay interest, please shareholders, and grow. In such a situation, providers are the only remaining source of credit.

Everybody knows the solution, yet nothing is done.

For the government to respect the suppliers, the Political Class must change its attitude; banks are unlikely to align themselves with more responsible lending practices; it is unthinkable that the buyers spontaneously decide to be more empathetic with suppliers (There are exceptions).

The regulation of all this must be done by law.

Politicians do not see or do not want to seethat they are causing so many problems with their apathy and lack ofcommitment, so they do not feel that they have any responsibility for insecurity,unemployment and migration.