cadenas -> RE: Why Americans are heading south for work. (12/2/2009 9:12:35 AM)
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ORIGINAL: Musicmystery quote:
ORIGINAL: Brain Maybe this is the real reason Lou Dobbs left CNN? Actually, this is nice to read after watching Dobbs bash Mexicans for illegal immigration for the last five years. This is an unexpected surprise. Why Americans are heading south for work. Viva Mexico! - Forbes.com As unemployment in the U.S. climbs past 10%, what does Mexico offer to Americans looking for work? For starters, Mexico offers a comprehensive health care plan for a flat fee of $250 per annum. http://www.forbes.com/2009/11/30/mexico-jobs-united-states-insurance-opinions-contributors-michael-wildes.html Wow. What nonsense. Sure, Mexico is a great place to retire--when you already have money that will then stretch further in purchasing power. Two problems with your scenario-- (1) those lower prices are also reflected in lower wages, and (2) after NAFTA, Mexico's economy is tied to the U.S. economy in ways far more severe than vice versa--and since the U.S. recession, Mexico's economy is a mess. I don't think that's necessarily a contradiction. The lower prices don't have to be reflected in lower wages for Americans looking to work in Mexico - and in fact, they probably aren't. Rather, the lower prices are a reflection of the fact that Mexico has far more poor people than the USA (although this disparity is getting less as more Americans are sliding into poverty). From my own, admittedly anecdotal, observation based on friends in Mexico City, Middle-class Mexicans (and thus middle-class Americans working in Mexico) would make similar wages to the USA. It is true that the Mexican economy is a mess. But then, it's been a mess several times since the 1980s, if not earlier. There is another big unknown here, and that is the future of the dollar. If, as some people fear, the dollar becomes near worthless, then the income for these retirees would all but dry up.
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