Poverty
There’s been something bothering me ever since our return from Mexico. Shortly after getting settled in my office, I searched online for job listings in the local Merida, Yucatan newspaper. I was curious what an educated Mexican with a college degree is paid. The average starting salary in Merida for an experienced professional, such as an accountant, is $8,000 to $12,000 per year. An administrative assistant is paid about $4,000 per year. There were many jobs in the paper that paid much less. The minimum daily wage in the Yucatan is $4.32 USD per day. 45% of Yucatecan workers make less than $8.60 USD per day (roughly $2,700 per year). 87% of the workers make less than $22 per day ($6,700 per year).
One might argue that the cost of living is lower in Mexico than in the United States, but it depends on what lifestyle we are trying to cost. Mexico’s per capita income is $6,800 compared to $35,000 in the United States. That doesn’t mean things in Mexico cost 80% less than the United States. In fact, they cost about the same. We visited numerous stores in Mexico from a Sam’s Club in Campeche to the central market in Merida to little corner stores in remote villages. After adjusting for the exchange rate, I found little difference in prices.
Gasoline in Mexico costs $2.23 USD per gallon, not much cheaper than gas in the U.S., even though much of our oil comes from Mexico. Some basic food staples are less than the U.S., often because they are subsidized, but the difference is marginal.
So how does the average Mexican family survive? They live much simpler lives than Americans. Houses are tiny, very few own cars, prepackaged foods are a luxury, clothes are worn until threadbare and then patched and patched again.
Yet by world poverty measures Mexico is relatively well off. It ranks 81st globally in per capita gross national income. There are 127 countries ranked lower, the poorest of which have per capita income more than 90% lower than Mexico.
Countries are poor for many reasons, but the primary one is insufficient employment and productivity growth, which can be the result of corruption, lack of investment in infrastructure and education, and an excessive bureaucracy that stifles innovation. Bottom line is Mexico and other poor countries have too few jobs for their populace. These macro issues can take generations to solve. In the meantime, is it any wonder why Mexicans are willing to take the risk to come to the United States to find work?
The question I ask myself is am I doing enough to relieve suffering and provide equality of opportunity for the poor. Each of us must answer that for ourselves.
Side Note: The above pictures were taken at the Mayan ruins of Uxmal. Residents of local villages were employed patching the stonework at the ruins. What I found amazing about this is in my numerous trips to Mexico I have never seen women working side by side with men. Usually work like this was reserved exclusively for men. It is a welcome change.
