Mexico increased its minimum wage by 15%, but it hasn’t amounted to much change. Mexico has the lowest pay in the Americas, but many say this was not the way to solve the problem. The Mexican Employers’ Federation said potentially 700,000 small businesses could fall under in the next quarter, along with stating that the immediate implementation of the wage hike actually hurts because there was no gradual increase. This can cause wage push inflation, where employers try to offset the hike in pay. I believe this is not good for any country because it doesn’t really affect the poor in any positive way, and it would help families get out of poverty either. I read elsewhere that workers in Northern Mexico get paid almost $11, while others get paid around $7. The ones making more are still not making enough to fully sustain themselves, while the less paid workers are still stuck. This shift hasn’t really affected people who work food stands and owned businesses because they set their own prices, but not everyone can do that. Even though this is a step in the right direction, there should have been gradual steps to make this happen instead of instantly. This sudden inflation has hurt countries before, but maybe the offset of Covid-19 will stabilize how much it hurts in the future. Since Mexico is under socialist leadership, there are poor relations between them and the US, but since Biden will be in office soon. maybe relations will be better and the 2 republics will help each other with their problems instead of hurting relations more.
