Extreme Economic Inequality In Mexico

Extreme economic inequality in Mexico

The issue of economic inequality becomes more and more strength worldwide. The World Economic Forum, for example, identifies the deepening of inequality as the first trend in the world in 2015. On the other hand, Oxfam in 2014, revealed that 85 people in the world have the same wealth as half of the world’s population. By January 2015, the number of these people was reduced to 80. It is not possible that, as Mexicans and not only for ethical reasons, we continue to allow levels of inequality where the country does not have enough income to acquire the basic basket that the foundations provide to lead a healthy life.

For these reasons, the “equal” campaign began a global movement to alert the limitation of advances in the fight in the struggle of poverty thanks to the huge inequality of the country. Gerardo Esquivel declares that in recent decades the economy of Mexico is stagnant thanks to the growth of extreme inequality.

The main inequality factor is the distribution of income. Standardized World Inome Inequality Database puts Mexico in 25% of countries with the highest levels of inequality in the world.

To give us an idea of the immensity of the problem in Mexico, in 2014 the four largest Mexican billionaires could have hired 3 million workers and pay them the minimum wage with only the performance of their wealth. These millionaires and other power groups have benefited from the State, since they have made their fortunes from private sectors, concessioned or regulated by the public sector.

The problem has not decreased over time. The socio-economic database of Latin America and the Caribbean (Sedlac) and the income distribution database (OECD) show two results: in the mid-90s and in 2010, income inequality decreased, however, inequality is greaterto the one in the 80s. These two events are contradictory. This is produced by the growth is concentrated only in the highest distribution spheres.

There is a vicious cycle of inequality, lack of economic growth and poverty in which our country is immersed. Inequality has stopped the potential of physical, social and human capital of Mexico, persisting unlimited poverty in our country. Therefore, GDP per capita grows less than 1% per year while the fortune of the richest multiply, as a minimum of five times. In other words, capital development is limited that improves the conditions of welfare and life of citizens.

As we already saw extreme economic inequality in Mexico also has a strong political implications. The economic power of some sectors of the population is reflected in public policies that benefit that they only benefit a few. This situation can begin to change when the magnitude of inequality of the country and the fact that it has become a limiting factor for the growth of our economy and that creates part of a vicious circle of inequality, with alow growth and ascending poverty.