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Are Mexicans poor?

created by baffo

(idea) by baffo (1.6 wk) (print)   ?   (I like it!) 2 C!s Mon Feb 26 2001 at 16:25:23

The question deserves some analysis.
If you divide the Mexicans into equally sized income classes, you realize that only 10% of the population makes more than 1000 USD/month.
This would mean that the answer is yes.

But in fact, you need to qualify the answer a bit further; it turns out that the great majority of Mexicans is poorer than the average gringo.
If you look inside that lucky 10%, though (that include university professors, top managers, senior graphic designers ...), you realize that money buys you different things in Mexico and in the United States.

For example, suppose that you fancy a house in one of the nicest part of Mexico City - Coyoacan. 300.000 USD will buy you one. A full time driver will cost you 300 USD per month; a live-in maid and cook, a bit less than that.
These sort of luxuries in the US are the province of the extremely rich - in Mexico a moderately succesful entrepreneur, or a senior university professor can have that.

These are all consequences of the extreme shape of the Mexican income pyramid.
There is a very wide base of people that would count themselves lucky if they made 200 or 300 USD per month; and a much smaller amount of people that can employ them.

Of course, the very rich at the top certainly look richer than rich Americans.

And the very poorest are really screwed. Consider: in the North of Mexico an entire family of migrant workers makes one USD per day. And of course they have no insurance, no housing, no nothing.
Usually they work in areas where there is very little in the way of educational facilities, which means that the situation is self-perpetuating.

Interestingly, it is not really the poorest of the poor that try to emigrate to the United States; to emigrate, you need to amass the money for the trip (transportation and corruption expenses, on both sides) - which comes down to several hundred dollars per person.

Anyway, back to poverty in Mexico. The small salaries are viable because food is cheaper (one person can avoid denutrition on a couple of dollars per day in Mexico City, even less in provincial areas), public transportation is cheaply available and there is a certain number of housing projects that provide -or rather provided- cheap and decent housing.

What is expensive is imported luxury, like cameras and computers. The real difference, if we are comparing middle class jobs, is in that.
Your average office worker in the US, and your average office worker in Mexico are probably equally well housed and well fed - but the Mexican one must save for six months in order to buy a DVD player or a good camera.


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