The Economy of Mexico
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- Опубликовано: 21 сен 2024
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Despite its many critics, Mexico has some surprisingly strong economic characteristics. A great export market, a thriving manufacturing industry, natural resources, a young and productive workforce, and even things like geography are all on its side.
But the nation still has critics. And some of that criticism isn’t entirely unfair, as things like crime is still an issue. And as strong as Mexico’s legitimate economy and export market is, we still all know deep down the other export market that Mexico is home to.
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📚 Want to learn more about the economy of Mexico? We recommend reading "Beyond Smoke and Mirrors: Mexican Immigration in an Era of Economic Integration", by Douglas Massey and Jorge Durand and Nolan J. Malone 👉 amzn.to/30mgPvZ (as an Amazon Associate, we earn from qualifying purchases)
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Sources & Citations -
Székely, M., 1998. The economics of poverty, inequality and wealth accumulation in Mexico. Springer.
Boucher, S., Stark, O. and Taylor, J.E., 2009. A gain with a drain? Evidence from rural Mexico on the new economics of the brain drain. In Corruption, development and institutional design
Bruhn, M. and Love, I., 2009. The economic impact of banking the unbanked: evidence from Mexico. The World Bank.
Gonzalez-Hermosillo, B., Pazarbaşioğlu, C. and Billings, R., 1997. Determinants of banking system fragility: A case study of Mexico. Staff Papers
Atkin, D., 2016. Endogenous skill acquisition and export manufacturing in Mexico. American Economic Review
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@Pavor that's stupid and false. Mexico has way more resources than drugs and political corruption. For example it has a huge food industry, is one of the world prime exporters of cacao in the world. That is neither controlled by government or cartels. One of the biggest economic implosion in Mexico was the devaluation of 94. Which cut Mexican wealth in half and made the credit and many economic activities freeze. Which goes to what he is saying about relationships with credit. This caused huge defaults and interest to skyrocket which make money more expensive to get and economic mobility to slow down. Basically made 3x harder for the average citizen to get a house or car.
@Pavor which pennies, cacao farmers are pretty rich and they will be richer of they had more access to credit and the country was more industrialized to manufacture trucks domestically at a national rate.
And also access to future markets which they can access sustained pricing over their crops.
Please do your research instead of believing politician stories.
I,m mexican visit to santa fe mexico city the best economi in México and skylines
@@luissandoval5685 cuz you dont know what you have until you see worst shitholes.
Other countries featured: *laughs at their suffering*
Your country is featured:
*PANIC*
I like seeing my country. It's a chance to view things from an outside perspective.
Panic you say? People that are from the country featured (and such, have the biggest insight on the topic) respond in English, and make rational, educated comments? Yes, 2/100 are just plain bad, but you chose to say PANIC, so I'm chosing to call on your BS.
@sfasfasfaf asfasfasfasf lol please don't start that. Yes India is more advanced in some respects (military, mainly) because it has over a BILLION people....but lets be 100% real about the living standards that India affords most of its citizens....they are nothing compared to Mexico. HDI and GDP per Capita in Mexico is much higher than India...China is another story though.
@sfasfasfaf asfasfasfasf India? Mate even Mexico is a more civilized place. They have less poverty and better quality of life.
@@ElZamo92 Oh come on
After watching there’s a very big detail you forgot about. Corruption in Mexico is so rampant that, according to the source, we “lose” about 4-9% of our GDP to it.
That sucks hard. I heard it was bad, but 5% of the GDP ouch.
Also forgot to mention that organized crime, especially drug cartels, is so massive is because of USA demand
@@andres_pq Dude, that is not the point of the video. He is talking echonomics not drugs.
Hello He said he wouldn't talk about the illicit trade. It's literally a minute long disclaimer at the beginning of the video
Geri O M
I don’t think corruption is limited to cartels. Government, police, and social justice are some other factors limiting Mexico’s potential.
"A young and productive work source."
*shows a couple of old muchachos*
Old muchacho is an oxymoron
Más como: Muestra unos ancianos.
Age is just a number
@@mcdonaldsburntchickennugge8231 No, la edad es más que un numero.
Old muchcachos.
Old boys.
I'm mexican, these are some of our economic issues:
- stupid high interest rates(credit cards ranging 30-50%, mortgages 12% annual interest rates).
- lack of investment in technology development.
-HUGE, expensive, corrupt and inefficient government with budget leaks in every level and department.
-Monopolies in many industries.
- Extremely difficult to open new businesses due to extreme government regulation.
-social inequality.
- Extreme difficult to open new businesses due to extreme government regulation... unless you’re one of the millionaires who can bribe their way out of those same regulations...
@@TaquitoTuesday así es carnal, el sistema está hecho para que los pobres sean siempre pobres, y los ricos cada vez más ricos
Hmmm.. like my county India
Wow. You have described Russia very accurately XD
@@kesorangutan6170 Hey man. I'm a Mexican guy, I'm Mexican American, I been to your country Turkey three times and I can say Turkey is Muslim Mexico. We are similar in both the good and the bad aspects. And basically both countries are developing. they are not super poor but they are not quite there yet. It has a lot of the same problems too. Regardless I enjoyed your country. The weather, the food the people etc. All good.
You missed one thing, while it's true that many people just don't have access to banks, most of the people that don't use banks do have access to them, most mexicans just don't trust banks, they prefer to be payed in cash and keep all their money in their house.
This is TRUE! My dad has been in the US for 40 years now and he still never used debt for his restaurant or his real estate investments. If he used it he would be so much wealthier instead of just middle class
Yep
Amazon and many companies have to setup direct payment methods
I have no problems with using banks(still don't trust them much, i have a very shitty bank), but ALOT of pepole do, even young pepole, not just older generations
@@jesusramirezromo2037 Let me guess, is it Banco Azteca?
@@AxelElRojo Not THAT shitty
Santander, i and many consider it one of the worst banks, mostly due to its horrible customer service
Some people remember history. Like, the currency failure of the 94 or, the great depression of the 29
As a Mexican, Economy student, I can say this was pretty on point, the regional aspect of the economy is the realest thing of all, I am from the poorest state in the country, Guerrero, luckily I was born in the biggest city on the south of mexico, Acapulco, but local economy went to shit 'cause of the violence in the city, is the 2nd most insecure city in the world(homicides per capita). Now I live in one of the states with the fastest growing economies in the country, Queretaro, and the difference is night and day. And disparity of wealth is incredibly huge, but I think is advancing at faster pace now to bridge that huge gap.
The Biggest problem of Mexico is/was corruption, it is what is helding back the economy, millions upon millions of dollars being taken offshore by greedy politicians and state functionaries.
idk i feel amlo just isn't good enough. Not bad but he has the power to do a lot more.
Daniel Gonzalez What do you think about Amlo’s policy towards the cartels?
@@lolailo2199 I mean the economy hasnt grow since he took the charge but is mostly because the country was left in shambles and his first objectives are closing the gap in wealth and combating corruption, he has said that to death since day one.
@@antoniobrignoni3722 What policy?? turn a blind eye to it? that is hardly a policy but it is the less harmful since most cartels have more power in some cities than the freaking goverment(as I said i'm from Acapulco), and in respect of the ''guardia nacional'' is just an attempt to tackle the already present corruption in the military, is my best guess.
Dude sold out to the cartel the moment they released Chapo's son
Me, as a mexican lawyer and economist been rooting and waiting for this video for so long! thanks and that was a good study.
Waiting for so long??? Nada nuevo hay en este video, todo es muy conocido.
@@angelunknown1692 Estaba esperando la opinión de el autor de este vídeo sobre nuestro país Don Edgy.
Yeah, because we all cared about your legal studies.
@@DaBeezKneez 98 people did, maybe find something more productive than being edgy on a RUclips comment section.
I support and appreciate you. Remember to do as much as you can to help every other human being.
*The Illegitimate Economy of Mexico would be a helluva video*
half of the fucking economy is underground. Imagine if that shit got legalized
Yes, it would be interesting to see how the largest consumer of drugs in the world (both in relative and absolute numbers), the United States of America is fueling a ruthless showdown of violence not only in Mexico but also in South and Central America
@@abdelrahmanwael2551 Having it legalized means it wouldn't be underground anymore as they have to pay taxes, and that industry does not want that.
It would also be instantly demonitized, if not out right censored. Our Google OverLords are watching.
@@Pi-Face then lower taxes across the board and that will help the poor with their incomes. Do they rely on welfare? I haven't heard of no welfare
Mexican here. Credit is really not well viewed, my grandfather used to say. We may not have that much but we have what we need and it's paid for. People on the other side (that's how they call the US) might have huge homes and fancy cars but they owe everything.. then they become slaves because they cannot stop working
Jajajaja hermano.... En USA tambien millones de personas deben créditos y se vuelven esclavos de sus deudas.
G m te invito a traducir el texto en español creo que entendiste totalmente lo contrario jajaja
@@pablogonzalez7588 jajaja si tienes razón. Leí mal. Pensé que era pocho y decía lo contrario.
I live in a large house in the countey and have a good car. No debt. No cartels to deal with either
@@goober7535
Thats what you think buddy, the headquarters of cartels are in the US. Mexico is the route from central and south america were the drug is made into the US.
As a mexican, I hadn’t realized that most countries don’t depend heavily on foreign investment, sure, the top economies of the world dont but for some reason I thought that most countries did
La mayoria de paises dependen de paises mas grandes para crecer exponencialmente pero Mexico en este punto es/somos una garrapata de USA... pero bueno, podría ser un perro mas flaco jaja.
Daniel Gonzalez El Mexicano tampoco invierte mucho en su propio pais. Deberíamos dejar mas dinero en lugares locales.
Ricardo Moyer hola hola taco taco
Mientras no nos pase como Australia que paso de estar al frente a estar detrás de China en pocos años.
Where'd the English go
I am very pleased to see a high-quality video covering Mexico! On RUclips, we have lots of content covering the Middle East and Europe, but Mexico, Central America, and South America are truly underexplored by content creators. Good job!
Should be explored by content creators NATIVE to those countries.
I don't trust a guy who has Kill Gates featured in its YT channel banner and constantly promotes debt and IMF loans, fk that
@@forthepotentates7526 Hi Emil,
I am pursuing a master's degree in 'Pluralist Economics', so I totally get your point. As you know, 'enforcing' debt is at the core of the current financial system, so EE can do very little to change it. But maybe he could create videos to introduce alternative approaches, ideas, systems, etc.
@@Geopoliticum His videos are fine, my point is he misses a lot of information and details about other countries he doesn't truly know or have never visited or lived in.
As many comments have already pointed out, he completely ignored the effect corruption has on Mexico's economy, and his comparison to South Africa is just bizarre, among many other facts.
Video: "Mexico just needs debt!"
Time: "Yeah, they didn't need that."
It's true though. To make investments, you need access to credit. There's a big difference between investment debt and consumer debt.
Depends on what that debpth goes to
The reason you can't start a business in Mexico is because of the corruption, monopolies and the bad people there will Kill you if you have money so it's better to live in another country and have a shot a life in a different land
@@DoitbreakitlearNmoveon right, you should go to siria
@@Jzarecta why would I want to go there? I'm Mexican I luv my country is difficult here
Workers in Mexico dont demand lower wages. They are given lower wages
Trey Anders technically they “demand” lower wages because they are willing to take them at that low value. I don’t think he is saying they all individually demand them.
Raise them
I’m from Juarez and there’s lots of factories they’re mostly Chinese. They go there cuz wages are low. Family member working as a line worker makes 40 dollars a week
@@jimboonie9885 easier to say than to do
@@jpepe-qg4qj they need to unionize, it's the only way for workers to fight corporate greed.
It's amazingly funny how you mention the economic problem related to drug trafficking in Mexico without mentioning the US
Yep! The best customer! Very demanding too!
@@jacqueparr4175 Yes and Central America and Colombia since there are many drug producers/manufacturers in those regions and the Chinese drug lords moving their drug business in Mexico
"There is a lot to be said about that *other* domestic industry..." i love how you avoid saying 'drug cartel' or 'drug exports' but still show b-roll of coke lines and heroin needles lmao
Wants the video to be monetized.
You can also get much cheaper prescription meds there. And health care tourism is a big deal.
There are only Italy and France as largest economies to cover, I expect them soon at this point. This type of content is just THICC man.
Italy has been at the center of the largest Coronavirus outbreak in Europe.
@@TheLiamster So what? US has been the cause of outbreak of something even deadlier. It's called American Democracy.
has he done in Brazil and canada?
I think the American Democracy is better than European tyrants.
@@visekual6248 🇨🇦 yes, 🇧🇷 no.
Mexico is amazing.
Respect 🙏
Yes, yes it is 🇲🇽
No it's not es un cagadero de corrupción
EWW NO
In Mexico as we are the largest consumer passage zone in the world, any situation is enlarged (both good and bad).
También es cierto lo de los tacos y el picante.
Jaja
Y que hay de las quesadillas sin queso?
@sfasfasfaf asfasfasfasf :0
@@ianpineda Esas son historias de terror que contamos a los niños malos... niños muy malos
@@arcodax3302Y los chilaquiles con bolillo? O las tortas de tamal?
I swear EE makes up 90% of the stock photo industries revenue
A bueno t me cuidas
germany makes uo 99.9 % of the EE economy lol just say germany. Everything good from ee comes from hermany.
I've been to half the country, other than scorching heat, it was probably the most beautiful country I've ever been to.
I mean, it has some of the longest coastline in the world, and it's all good weather all year long, and it has more UNESCO world-heritage sites than any other country in North or South America. Mexico is the best representative of a TRULY AMERICAN place (meaning, actually has influence of native american/indigenous culture) in the world.
@@WalksandSuch Well said. I share the same opinions. The culture is beautiful. The markets, beaches, etc.
Walks and Such Truly American as in Native American roots then yes! But the U.S and Canada have different definitions of what it means to be American and that has nothing to do with the Native American roots.
Are you speaking geographically, culturally, or based on architected or all three?
The beaches are definitely better than most in the US, which is probably why so many Americans go to Cabo or Cancun
Mexico is not "overall a little bit poorer" than South Africa...its the reverse, Mexico has a higher GDP per capita and HDI than SA....c'mon.
Ikr lol
Not by much, 0.70 to 0.76 compared to Argentina which is at 0.83 or Chile at 0.84.
@@Jzarecta .6 is still significant (anything .5 or greater is significant) and there's no excuse for a blatant error....especially considering Mexico has 2.5x the population. you also didn't mention Mexico's GDP per capita is about $4,000 higher than SA....it's like they based their statement off general impressions and not actual data
@@WalksandSuch Mexico is closer to South Africa than Chile or Argentina
@@Jzarecta by .1 and .2 points. i never stated that mexico was more overall developed than argentina or chile....but those are much less populated countries. to state that mexico is 'poorer' than SA is false and it's especially egregious because Mexico is more populated and overall more developed/richer than South Africa.
Also, I think it's important to bring the fact that taxation on middle class Mexican citizens is so heavy that it makes almost impossible for businesses to grow into successful companies. An enormous part of the Mexican domestic economy is sustained by micro level businesses, e.g. street food shops
"mexico has the highest percentage of its population living abroad" *simultaneously laughs and cries in bulgarian*
There's a reason for that
Most of those Mexicans live in former Mexican land
my dad discourages me from investing in mexico, but i had a good feeling it wasn't as bad as the media made it out to be.
Lol if you’re from the US the media has a lot of influence on its citizens
It’s scary dude
I’ve met older people that believes literally everything FOXNews or MSNBC tell them the absolute truth is
I live in Mexico & it's not nearly as bad as the media in the USA makes it look. Most of the violence is between criminal factions and a typical man has the ability to live a fulfilling life. The corruption is the real issue, it's in every aspect of life here. It feels like everybody is against each other. But the work ethic is incredible. Very positive attitudes & extreme resourcefulness. The crime & corruption really holds us back, but corruption especially is too ingrained into our society, young, old, rich or poor. All willing to do anything to get ahead.
We dont want ur money thank you.
@@fiddlefarts why not? Foreign investment is good
@@gothenmosph5151 foreign investment does not equal a better quality of life. Usually the oposite.
Just to point out that Mexico is actually richer per capita than South Africa both in GDP and wealth.
Is that somehow a win? Congrats on being slightly richer than a country located in the most backwards, dirt-poor continent on Earth - while Mexico is directly south of the richest, most developed economy on Earth 🙄
@@mi4johns It is not a win, it is stating the facts straight.
@@mi4johns ok dog pfp
@@mi4johns South Africa is actually not that bad if you know at least a little bit about the continent of Africa, enough to know that not all African countries are like the Central African Republic or the Democratic Republic of Congo. There are actually many developed places in Africa.
@@carlosfernandez5833 Meanwhile, 16 African countries have at least 50% of their population living at or below the world poverty line, but hey, "it's not that bad" right? 🙄
I would actually love to see you do a video on the economics of the not-so-legal side of Mexico and similar countries economies. It's not something that gets explained often due to the political and controversial nature but I trust you to make a well-informed video on the topic.
TheOneWithComments I reckon he won’t because the stats won’t be accurate.
It will destroy the country just like it did with colombia. You cant have rival cartels armed like real army fight echother for profit and power. Its like there is a constant mini civil war in mexico
Also no foreign company are interested to put their fortune in a country where they would be harassed by mobs
The only real winners there would be the cartel leaders who make the money then retire somewhere before being dead or arrested 😂
Also there is a high risk usa army intervien in mexico if the cartel army power gets more powerfull then the mexican army
If something bothers usa. They invade without hesitation
America is the largest consumer of drugs in this planet
That explains a lot of Mexico's problems
The slogan of my university, the second best in Mexico, could be translated as "The technique at the service of the nation", so yeah, we're trying to keep skilled workers here, but Canada has so many cool deals for mexicans, it's hard, man
Huelum. 😎
As a Canadian I wish Canada-Mexico relations would be better. I would love to visit your country for the food, the history, and the culture.
@Galleta de Soda NAFTA?
Históricamente EUA, Canadá,Alemania, Rusia, y hoy en día China se han “robado” a inventores, innovadores, y científicos mexicanos para su beneficio, mientras en mexico no se les da tanta importancia, no los culpo por aceptar ofertas de una vida mejor en países donde son bien recompensados por sus esfuerzos, incluso hijos de inmigrantes indocumentados llegan a hacer grandes cosas pero no para mexico.
Esto es de vergüenza 🤦🏻♂️
@@heatherswanson1664 Please come and give us your tasty dollars lol.
I'm Mexican and I didn't know what was our economy until this video
Thanks for the video! It's great to see foreigners care and study my country
please do the economies of the rising african economies, like Botswana, Rwanda and Nigeria
Landon Young There’s nothing rising about those countries.
Tronic Basez right except their standards of living, wages, international investments, democratic indexes, and industrialization
J Nigel based on the likes of his comment. 50 people disagree with you. Sorry!
J Nigel Rwanda has had extremely fast economic growth, and literally had a genocide 30 years ago. explaining how it went from near disaster to one of the best in africa would be extremely interesting. Nigeria has a bad economy but it’s still the biggest in Africa, and it would be extremely interesting to see him talk about how it could overcome its obstacles. Botswana is a remarkably stable economy not just for Africa, but for the world. showing how these countries operate on a continent most ppl think is desert and starving children would be interesting regardless.
"Technically" yes, they are rising, but the thing is those economies where literally dirt, now they are still dirt but organized.
They aren't rising, they are just starting to catch up with the rest of the third world, a thing of course really good, but not so interesting.
And it's still a continent with deserts, starving children and armed terrorists, they are not rich and most of them live under the line of extreme poverty, just because they now have some running electricity and some running water in some parts doesn't mean they are becoming a new "world power", it means that they are starting to get in line with the rest of the world, they are still poor as fuck of course, but they are going slowly to a better future that will take a lot of time to reach.
00:33 "a young and productive workforce"
Cut to a photo of a bunch of geezers in their 60s.
They actually must be in their 40's at most, they just look older because of the work and other situations, it is actually quite common in Latin America.
I assure you, they are young, but they don't take of themselves, believe me, I am Mexican
Mark Stevens if they look 60 you look 80 in ur profile pic
@@woowowowow583 his hairline is running away
@@jerardogarcia4337 RIP
Can you PLEASE make one about Colombia, I think it would be very interesting to analyze its economy and how the armed conflicts have affected it.
Finally my country. Great Job EconomicsExplained. ¡VIVA MÉXICO!
¡VIVA! 🇲🇽
"Let's talk about Mexico's economy."
*shows a stock photo of a black guy talking to a chinese guy*
Lol
That would be Santa Fe.
You do know Mexico is an european type nation with lots of races, right?
@@juanjoseph I just think this is false, I think Mexicans just have an obsession with white people and never seem to mention the huge amount of native ancestry.
@@DivinesLegacy
Well that is your opinion. You have right to have one even if it's a wrong opinion.
I mean, it is beyond question now, given the genetic studies conducted by the genomics institute of UNAM.
And the image was a black guy talking to a chinese guy. And I mentioned a region where many chinese businesses have offices filed with chinese people who work on Mexico. So maybe the problem is you and your lack of world.
@Dorey DNM its like showing a menonite instead of a Michoacan harvesting avocado, so a very strange token for Mexico.
As a mexican, I totally agree with the ideas presented in this video. Just to remember, the underbanking issue has its roots not in the NAFTA, but in the early 80's, when the government nationalized the banking industry as a response to the huge debt crisis. The new privatisation occurred in the 90's and caused the collapse of the national banking sector, so the government decided to allow major foreign banking investment in the country, besides the strict "austerity" policy imposed by the USA and the IMF, wich consisted mainly on imposing high interest rates wich had perdured until today. So, the main cause of the underbanking in Mexico is the monopoly of the country's banking system and the high rates those banks charge on their customers. So, is a pretty good business for banks and a very bad one for the people. So, we have in Mexico the highest profitable foreign banking investments and at the same time, a really expensive and hard-to-get credit, due to the foreign banking monopolies in the country.
3:39 wtf, why are you guys suddenly looking at me
They are not looking at you, they are looking at the camera.
you should have look at them back.
The Liamster you must be fun at parties lol
@@TheLiamster You must be kidding 👀
@@TheLiamster r/wooosh
I've always seem Mexicans as our Spanish speaking brothers, I'm Brazilian, I've always felt we suffer from similar problems, but are still pretty relevant regardless
Both are large countries, beautiful landscapes, has the right things in place to become an economic powerhouse, corruption. I love both countries but the politicians in these countries are the worst.
A good video, but I think one important thing was left missing. While Mexico may not be a wealthy nation at all by Western standards, it is still much wealthier than most developing countries. Mexico has a GDP per capita of around $10,000. That is much more than for example south and southeast Asian nations that often have GDP/capita of around $2000-3000. In other words, Mexico is 3-5 times wealthier than these countries. Mexico is much wealthier than China as well.
This leads to my second point. A lot of people are painting overoptimistic views about developing countries reaching 1st world status, but for the most part, that is almost certainly not going to happen. That is because it is much harder than often thought to reach the level of the US and western Europe. Not as many countries have actually managed to catch up with the West as is often thought. Some countries in Asia (such as South Korea, Singapore and Israel) and some in Europe (like Spain, Finland and Norway) have managed to do it. Much longer is the list of countries that have first started well, but then fallen into a so-called "middle-income trap" and stagnated as a consequence. This list includes for example all of Latin America, Iran, Thailand, South Africa, Nigeria, Russia etc. China, despite the CCP's attempts to claim otherwise, has now also stagnated. Therefore, it is certain that many of these South-east Asian nations will face the same destiny (some already have). They just started from so poor conditions that it is not uncommon to grow fast at that stage. But when you progress a little bit, sustaining that growth will become much much harder and only a few countries have managed to overcome it in a short period of time.
China's GDP per capita is around $10,000 as well and it registered growth rates of 6%-7% over the past decade so China's economy will overtake Mexico's economy soon. The South East Asian countries only became independent last century, whereas Mexico has a 200 year head start in developing their economy. Most South East Asian nations have higher economic growth and SEA nations such as Brunei and Singapore are 5 times richer than Mexico. So Mexico is falling behind as the FDI inflow into SEA is higher than Mexico and Latin America as a whole.
@@invictustv1409 China's GDP per capita is not $10,000 because of systematic manipulation of GDP figures by the government for years. Every economist who studies China's economy even a little bit knows this. This is also the reason for why China's GDP hasn't grown for 6% a year for many years. And, as I tried to explain in my original comment, just because some country starts out doing well, does not mean it will end up doing well once it develops a little.
The GDP reported by the party has been manipulated since the 2008 financial recession. It is much closer to 1-2% than the reported 6-7%. As estimated by companies and former high-ranking party officials. Which means the GDP has been way over blown by the party. This is also not taking into account the numerous bubbles in the economy. Or the financial slowdown caused by the trade war with the US. Mexico in contrast could easily reach a 6% GDP growth rate. If it could secure a favorable trade deal with the US and Canada. Whist also getting rid of it's major corruption and crime problems. Also, In the time Mexico has been independent they have suffered internal and external conflicts. Civil wars, rebellions, and foreign invasions, whilst also suffering from crime and corruption. Which is compared to South East Asia, which has been stable compared to Mexico.
exactly. Thank you for your correct and sobering remark! Mexico and the major Latin American countries are more developed than Africa, South Asia and Southeast Asia.
@@WalksandSuchAnother issue is immigration. One reason Trump won is because he wanted to build a wall along the border with Mexico to keep the Mexican immigrants out. If the Mexican economy is that great then why are so many Mexicans trying to migrate to the US? Why are there so many illegal immigrants from Mexico in the US? China has well known multinational firms such as Huawei, Lenovo and yes even Tik Tok. The only well known brands Mexico has are the Sinoloa and Los Zetas Cartel, and Mexico's top export is drugs. The countries that you've listed Philippines, Vietnam, Indonesia and Brazil are all at the same level of development with the SEA countries growing much faster. Mexico is not at the same level because in some areas and states of the country, the Government has no authority, it is run by Cartels. Mexico's economy is unable to move up the value chain and produce global brands like Samsung and Toyota because the country is highly corrupt and very dependent on the USA.
"If I, an australian"
*Puts a kangaroo in the video*
Normally, this channel spreads GREAT content. With this video, however, I do feel like you're missing the point:
Claiming a lack of debt is the underlying problem is just a tad bit too ignorant considering 1994's Mexican Debt crisis that literally cause a sovereign default and saw the US & IMF come to the rescue. Seeing how the Tequila crisis is not mentioned once in the video, I cannot help but feel a good part of the story is missing..
The kind of debt he is referring to is the one among common persons like you and I. Basic access to loans and good banking services. The Tequila effect, I presume (I was 1 year old when that happen) was exclusively a domestic state debt. Please correct me if I'm wrong.
Thanks to make a video of mexico!! , Is excellent your analysis!! I hope mexico overcame this difficulties and leave his dependency of US, salutes from Monterrey, Mexico
PD: it would be interesting a brazil economics explained
There is zero like absolute zero chance that dependence ends unless measures are taken to increase substantially with other partners. That said the current economic model in Mexico is going to double down on trade and investment and thus dependence on its largest trade partner so if anything the country will become even more dependent not less.
Así será Bro, we just need to keep studying and working to make this country great. Saludos
@@GAndreC if mexico uses libertad coins it will overcome the dollar.
I would love if you covered Brazil's economy.
Prostitution, drugs and sugar cane
Next
@@justicewarrior9187 you forgot the Amazon forest
@@justicewarrior9187 well over 1 8 trillion dollars in prostitution wow
Sugar cane? In XVIII century maybe.
@@varimatra2088
Yup
That's what money from massive tourism does!
... It's kinda already alfway there
Amlo : i have other data
Moises Rosario sad :(
you know how to get a grown man to his knees, weeping in tears and despair
Well he didn’t get any debt during the pandemic but other countries did after the pandemic they’ll have to pay it back
@@19ars92 He didnt get any debt to improve hospitals for Covid, thats why we have almost 200k deads.
@@whataboutdragonsguy5175 Yeah.. people ignoring the restrictions and being one of the most unhealthy countries at the world doesn't have anything to do with it.
C'mon not everything is: "because of the government..."
It looks like most of the actors in this video segment were supposed to be put in the video on the economy of Norway LOL
Johnny Walter He uses stock footage. But your right. Lol.
A crucial point you missed when you talk about loans and credits for low-income people is the financial education, there's an incredibly low rate of people with financial education and 90% of credits are destined to short term goods consume which means that current levels of income for most of these people are not enough to cover basic needs and any of the benefits form credits you talk about are not possible due to the credits not being used properly for investment.
Yes! Finally, thank you!! I’ve been waiting for this video for a very long while
Hope you're happy Mexicoball!
Irish Eggs I am :)
"A law-biting Mexican is not a true Mexican." -A True Mexican
Law abiding**
@@alain5487 White Mexicans
when the state is so corrupted to give monopolies and not permit for competition that's what happens
I'm about to say something that is not popular, but unfortunately true. Part of the reason why certain nations can't seem to "get it together" is largely based on culture and the form of governance. Not it's economy or GDP. Since we are talking about Mexico, there's the stereotype of "lazy" and while on a person by person basis, that's not true. Most Mexicans I know, work harder than any other race I encounter. But the culture is rooted in Spanish colonialism, where it's still largely practiced that the regular people must pay it forward to the crown, whereby the crown promises protection and basic necessities. Socialism. While Mexico doesn't pay Spain anymore, it still has that top down structure embedded in all it's institutions. The common attitude is, "why should I work hard, when they are just going to take most of it anyway". If I do the bare minimum, they will pay me.
In stark contrast, America has always been of that of a pioneering spirit. "Can-Do Attitude" and "Pull Yourself Up By The Bootstraps" modes of thinking that promote of individualism and self responsibility. "I worked hard, by the sweat of my brow, and I earned this... and I'll be god dammed if anyone takes it from me!" is the common American ethos. The results are obvious as to which is the better system of governance. Allow the people more freedom and reduce regulations and red tape so the people can rise up, start their own businesses, become employers, try new ideas, invent and create. Without the fear of the government coming in and taking all of your stuff to redistribute it to themselves, under the guise of helping it's people.
Think about it this way... Anyone could literally come to America, get themselves a lawn mower and legitimately start a lawn care business without any red tape or bureaucracy stepping in. You could literally run your cash based business like that for years, and never pay a single cent in taxes. Who do you think dominates most of those trades, and how they got started? That's right Mexicans, and they are exploiting the loop holes that allow for that type of financial freedom. Sure, if you want to grow, get business insurance, licensed and bonded, hire legitimate employees, you need to eventually go through the proper channels. Many have, and many are still successful, despite their origin story. BUT... let's flip that scenario on its head. Could you as an American run down the Mexico and start a burger stand without local officials, police or even cartels asking for your vendor license or asking for a cut. Many won't ask... just take it. Knowing you don't have any legal recourse or protections under the law. Happens to even the locals.
I'm not complaining about illegal immigration. That's not the point of this. I was merely pointing out that America and Canada do not share the same cultural values and they don't translate to economic values either. Personally, I don't think we should have Free Trade Agreements with countries that don't match our level of commitment to human rights, worker safety, democracy etc. I think a Free Trade Agreement is a privilege, not a right, just because we are neighbors. Sure, we can have trade and we can even invest into each other's infrastructure. But there needs to be an economic toll on the countries that can't seem to get it together as an incentive to do better for their own people. We shouldn't be footing the bill so they can continue to oppress it's own population, just so we can get a Ford for a few thousand dollars cheaper.
It's a stupid opinion, steeped in capitalism and greed.
One example is how your lack of social services because 'pull yourself by your boots' leaves homeless on the streets, bankrupt students, and medical debt, coupled with polluting and lackluster transport, while taxes are used to fight wars elsewhere.
Misinformed because you can see all the informal market in the streets in mexico, proving anyone can set up and sell.
The 'personal responsibility' goes out he window when you blame mexico on drugs but your people buys and funds cartels.
American 'exceptionalism' is merely bullying, bribing, warring, and exploiting your way to wealth, not 'hard work,' or else blacks would be as rich as anyone there.
17:17 to 17:45 that is golden for anyone writing an economics essay
I would love to hear about that other story of economy. It is not just a story of Latin America but, Afghanistan, Kosovo and Europe.
@@naddarr1 Yeah, it is especially interesting when you know things first hand. For example, before the invasion of Afghanistan, drug traffic toward Europe had been almost stopped. There were major police actions against cartels in Kosovo. A month later NATO bombs Yugoslavia and Kosovo gains semi-independence. Then the invasion of Afghanistan starts. Drugs are produced in 10x greater amounts. They start going toward Europe freely again.
Im from mexico city, big fan of this channel, I've been waiting a long time for this video
I would absolutely love to see a video about the economic effects of the international drug trade
*quería visitar mexico!*
Eres bienvenido siempre!!
@@fernandojimenez5206 Gracias😃
Ben bro pero nomas no vayas a Ortes que no te recomendan en ejemplo aqui en sayulita es seguro
@black vito wth! I met you at the Graham Stephan show and I admired your ideas 💡 good to see you peaking at my country
Mexico is the most friendly country I've ever been to. Especially to tourists. Save up money and book a flight. Totally worth it. You won't regret it.
Im Mexican and I just have to say that this is a really good video, so close to reality and very well explained.
MEXICAN OPINION; The new administration reduced government deficit in the latter years, hence another setback to the already poor GDP growth. Like you said government investments should step up and make up for the lowering on foreign direct investment, yet in Mexico, politics are run very unprofessionally, parties can't agree on big mega projects or needed reforms, every 6 years they have being trowing at the garbage all that have something to do with the past administration... the factors for medium and long term economic growth are utterly destroyed. Love your channel, please make a follow up later!
Lopez Obrador is trying
Obrador increased it substantially.
Pinches Chairos.
The fear here in Canada (and I assume it's much the same in Mexico) is that the US is economy is so huge it has the capability to completely crush us.
5:42
"A grain of salt" or a grain of cocaine.
that makes me
insane in the membrane
As interesting as the video was, you can't really talk about the Mexican economy without discussing the drug trade, allied with the fact that the country is a narco state. Addressing this will in turn require the rule of law (i.e. a reasonably non-corrupt and functional justice system). Until these issues are addressed (a heavy lift, admittedly), Mexico seems likely to remain in its' current economic limbo.
I was thinking powdered meth when I saw it lol
The spreading-butter-on-toast stock footage matched EXTREMELY well with the words you were saying at the same time. I am thoroughly impressed.
Alternativ title for video: "We want Mexico to get in heavy debt"
@Jonathan Cruz69 we don't see it that way , Mexicans live within their means .
@Jonathan Cruz69 Jajaja what a joke
@Jonathan Cruz69 you've never spoken to your day to day Mexican. They are consumers but also don't like to live above their means
@@SuperVladamere the unfortunate truth however is that debt is good. Without it there cannot be as much investment and growth.
I have never been as happy in México. I see thousands of North Americans, from Canada and the US, as well as many people from south and central América moving into my country, is starting to look like the US in the 1920's when the American economy was booming.
Now Mexico looks like the new "Melting pot" and great outfits like Tesla, Volkswagen, Nissan, Toyota and many other major companies are coming to my Aztec territory to make it great. Everyone is welcome to work and contribute possitively to our economy and benefit from it. I live near a town which is full with Canadians and Americans living happy. The same happends in the Big cities like México City, Guadalajara, Monterrey and others places where many young americans are arriving to work remotely. Thank you for your videos.
Anglo-Saxon world: well-established financial system and proper education system but average joes learn to fear financial and disdain education.
Latin America: backward financial system and education system but average joes know their importance.
inferno0020 stay in school son
@@The.Real_Fr stay in the prison R Kelly
inferno0020 your comment was insipid, insane, irrelevant and very irresponsible. The financial system of the “Anglo-Saxon” world aka capitalism has been disastrous since its inception. Once again, STAY IN SCHOOL
WOKE R. KELLY No it really hasn’t... I guess you have to go back to school and learn basic economics boy...
@@The.Real_Fr It has been so disastrous that it has worked to lift entire nations out of poverty. Look at South Korea and compare them to their northern neighbour. You can see Capitalism from space.
There’s quite a few shots of El Paso, Texas around 2:20
Worth adding that personal loans here in Mexico are ridiculous. It’s common for banks to charge 30% APY and in some cases also charge a high loan origination fee.
I think a video on Italy would be interesting, they're a super developed nation with a LOT of problems
Thanks for the video man, I'm mexican and I endorse the content of this video, peace!
How about few more videos about Latin America? I think Brazil and Argentina are great countries and very different from the other countries the channel has covered!
Keep up the good work!!!!
Argentina would need an entire documentary series!
@John Truxal It's not as simple as that, but I do agree with you
I just want to say your ad placement is great. Putting then before each new topic mean the ads dont pop out, annoyingly breaking the flow of a video. I wish more people would think about and time their ad placement. I hate to say it but your ad placement actually makes your videos easy to watch and more enjoyable, thanks
Solid analysis. Improving financial inclusion will surely ease some of the credit constraints facing the bulk of the population. But corruption and bad governance are equally important, if not more so. For instance, improving Mexico City's public transit infrastructure would go a long way to improve productivity, but instead we've seen billions of dollars be allocated towards a Mayan tourist train that will reap far fewer long term economic dividends. Many of AMLOs actions and policies have hurt Mexico's attractiveness to investors. Endless respect for your channel, but would have been curious about your take on the political & governance issues affecting growth
If Europe, Japan, South Korea and China have a large fast train system, so why not Mexico??!!...if actually have the capital and high qualified engineering to do it.
Besides Mexico city has its own massive mobility projects under construction or in process.
@@joserobertoramirezarevalo4610 Because trains in Europe Japan and South Korea are made from the need of a track so that Business could transport goods and provide services abroad, for example, a Train Infraestructure Improvement around Mexico would've been beneficial, instead of a Localized Tourist-Centered Train that won't be complete at the end of the administration.
What Mexico really needed was to continue the fiscal innovation that the last government was proving beneficial. Those Fiscal and Economic benefits created a fair field for little business and were given a framework to expand and contribute to the economy. The new ones rather increased the taxes and stopped programs so they could pay Elders Bonuses for nothing, and fund "jewel" infraestructure that will not help at all to economic terms.
Essentialy, what we need if we want to embrace the growing economy and develop a successful nation, we need to focus on investing in those who generate income and provide employment, or at least invest in things that will generate money for the country, not just useless "monuments".
@@TheDacowiiChannel
I find your arguments bias
The train
It will help develop the region 5 states
you say Europeans and Asian trains can transport goods
So does the Mayan train and the interoceanic train, passengers and merchandise, how is that a lost? Specially in the most touristic area of the country
As a Mexican person, is nice to see my country from outside, wish this kind of data could be share across the whole population, might change some points of view, and/or open a much needed debate inside us
I love ypur content in particular I really liked your videos on Sweden and Norway and I wuold really like to know what you think about the other nordic countries especially Denmark.
Keep up whit your great content
As a resident and new immigrant to Mexico, I can confirm that you've hit the nail on the head here. Also, my house was in one of the clips! Hey buu!
im guessing corruption in mexico is decreasing
@@bludeuce3855 No...
@@mxmclmas im sure it will soon
@@mxmclmas i dont get ehy cartels are obsessed with money they literaly have billions there not gonna run out from bribing mayors like $30,000
Sure, a debt based system is great! Its not as if that debt eventually needs to be paid... In a world of endless growth, what could go wrong?...
Simon Jimson we are in the 20s right now
@@rileyemel9913 I expect much worse this time. Lets see if the Masters of the Universe have any more rabbits they can pull out of their hats.
But exactly the lack of debt makes Mexicos growth so stable cause their economic growth is only drived by actual growth of economic output not just overspending as we can see in other more developed countries.
Can you do a video about the economics behind the coronavirus? Or maybe talk about the current stock market crash. Maybe even one about the business cycle and how we're most likely heading towards another financial crisis right now.
He made a video called the Economics of Disasters which included coronavirus, I think.
No, we’re not
Soy Filipino y saludos a mi hermanos Mexicanos😇😇
Hi, I really like the Philippines 🇵🇭🇲🇽
@@jehc.you guys are the same people.
Great video! Is always interesting to see how Mexico looks from abroad. I am not quite sure credit is the main problem, if you compere its percentage of debt with developed countries it does look like that. But developing nations don´t pass the 25% of GDP mark often. I do think is our ancient, and inefficient tributary system (Indirect problem PEMEX) which ends up making really hard to take loans, pay interest and have enough cashflow. Thanks for your great content!
The proposition that modern economics IS working needs attention
Love the video mate. Just a pointer; you don't actually have to come up with a clip to illustrate every other word, just saying! Besides that keep up the great content =)
Embracing debt?! Yeah, ask Argentina how are they doing with that...
🤣🤣🤣👏👏👏👏
As mexican, insecurity is the biggest issue imo.
Opening a small business that is not on the internet is hard af, if you evade taxes somehow, you still need to pay protection from local "authorities" and also from the drug mafia.
Fantastic videos, man, I just love learning about economics and economies!
“If I as an Australian”....... Randomly puts up a kangaroo 🦘🤦🏾♂️😂
It’s a wallaby, not a kangaroo
Hi there - I love your series on different economies of the world! Very fascinating the way different nations go about their success or failures! Can you do a video on Egypt? I think it would be very interesting to see due to its long history and it’s complicated relationship with Europe, Middle East and Africa. Thanks!
Relentless.
Stock.
Footage.
: /
Roger that Mr.Corn let me animate a 10 minute video for you, you know something to get a child to watch. like you
Or show graphs? Data? Do a podcast?
When the message is "stock message for a nation to become a debtor nations" what do you expect.
Para aquellos que se quejan de la economía informal de México, les recuerdo que nuestro vecino demanda drogas y vende armas como si no hubiera un mañana 😒
@Abominable Pile of Mutilated Corpses ese tratado ya terminó hace décadas deja de creerte que aún existe, el mismo tratado decía que ningún gobierno estaba obligado a rehacerlo y sobretodo no había ninguna cláusula sobre prohibición al desarrollo eso solo es pretexto de gente mediocre.
@rebaño sagrado 7u7 eres tú vs la evidencia histórica, papelito gana...
@@Ivan-xq3uo En efecto, la razón por la que no nos desarrollamos tecnológicamente es porque ha todos los putos gobiernos federales hasta el actual les vale tres kilos de verga entonces tienes muchos proyectos de universidades publicas y otros investigadores que se quedan en meras ideas o prototipos
Lo usamos para traficar drog@s no nos las da
Para ser sincero esto sucede porque el gobierno lo permite y favorece a uno u otro cartel.Esta bien cabron crear una empresa en Mexico por todas las leyes que pone el gobierno.
0:33 ...YOUNG & productive works force...
Mexico’s Anti-Fragility poises the Nation for a robust outcome soon to be reckoned with.
Mexico’s Economy deals with uncertainty very well. It has been exposed to major economic and political disarray so many times in recent History with outermost resilience and consistent real growth in valuations.
Serious Investors’ Portfolios will stay put for the long haul for the reasons suggested in this material (and many others that were omitted).
Also 2021 will render great opportunities for seasoned investors. Stay tuned with Mexico.
Will you be posting a new video about coronavirus now that it has had a more significant economic impact?
Nice when you mentioned USA (one of the times) my home town showed up as stock footage
"Poor Mexico, so far from god and so close to the United States."
you should be happy that America is close
@@ThatGuy68580 The problem is that the United States would never allow Mexico to develop. Imagine a country like japan with enough power to change “America’s backyard”. Do you think a wealthy powerful Mexico would allow CIA coups in Hispanic countries? Like Guatemala, Nicaragua, Chile, etc?
@@angelgallegos199 Mexico has one of the best economies in the world yet the disparity between the rich and the poor is still ridiculous. At this point you need to stop blaming the US and start blaming your corrupt government.
@@ThatGuy68580 Of course. It’s why we try to change it. Look at current president “socialist” AMLO. I’ve seen numerous media especially from the US refer to him as a far left menace. So far his been pragmatic. He even refused to take debt during the pandemic and was call out by the US media as radical and dangerous. He also said “thanks but no thanks” to US “foreign aid” which has the DEA all riled up. He won in a landslide which the last 5 presidents can only dream of.
@@ThatGuy68580….and then there’s the last president- Enrique Peña Nieto which American businesses loved. He was even in the Times publication as the man “saving Mexico”. Yet his administration was among the most corrupted and incompetent in modern Mexican history. Don’t tell that to the American media or politicians
"wealth baguettes wealth"
Ah, delicious economics. Thanks closed captioning!
please make a video about vietnam economy
I did feel that this video left out a lot of important details about Mexico that many people are aware about such as how corruption and security affect the economy but overall I feel that it did a pretty decent job to explain the situation, at least in respect to how debt affects the economy.
Ive been waiting for this one for so longgggg
You should make a video about the economies of Eastern Europe and especially the Balkans. Here we have pretty much the same problems - educated people leaving due to lack of opportunities, slow GDP growth, etc.
Thus having a good partnership with a highly developed neighbor around would really help eh...
Somewhere really cold
It would help more if that huge neighbour wasn't a drug addict.
@@joserobertoramirezarevalo4610 actually...
@@fredflintstone6338 what
It would help if our neighbor wasn't USA
Friend, the US embassador to Mexico said that there are aprox. 60 million Mexicans (half living without permits). Your estimate is way to low. There are 30 million LEGAL Mexicans in the US.
Next: The Economy of Colombia
Hope see some more vids on Mexico from this channel