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Guy Courchesne

Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City
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Posted: Mon Sep 08, 2008 2:20 am Post subject: Moving to Mexico - The Long View |
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I get asked by a lot by people here in Mexico why I would choose to move from Canada to this country, while so many Mexicans are flooding north. I arrived in 2000, and my answers have always revolved around culture or the idea of just being in a different place and escaping the Canadian 'mediocrity' that I find typifies life there, not to mention the climate.
Browsing around online, I came across some interesting stats on the Mexican economy, politics, and life in general here. Here's one place...
http://en.wikipedia.org/wiki/Mexico#20th_and_21st_centuries
Confirms a lot of what I've noticed in my several years here. Living and working in Mexico City was already like going national in Canada, given the population here. Living standards for me have always been on a par with where I come from, and rising each year I'm here. Mexico City folk, to my eye, have seen a large growth in living standards too.
Geez, just look at this forum and how many more righties there are now over fire-and-brimstone lefties.
One stat that caught my eye on the website linked above is the prediction that Mexico will displace most European countries, as well as Canada, on wealth and the size of the economy. No surprise to me, but neat to see it as actual economic theory. Makes me think that some day soon Canadians will be asking newly arrived Mexicans why they chose to move to Canada when so many Canucks are trying to move to Mexico! |
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M@tt
Joined: 16 Jan 2003 Posts: 473 Location: here and there
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Posted: Mon Sep 08, 2008 5:49 pm Post subject: |
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this was my favorite statistic:
"the top 20% of income earners account for 55% of income." |
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Phil_K
Joined: 25 Jan 2007 Posts: 2041 Location: A World of my Own
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Posted: Mon Sep 08, 2008 6:00 pm Post subject: |
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Coming from a right-wing Conservative, it may be strange to hear me say that Mexico will never acheive a G8 type of economy with an imbalance like that. |
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MO39

Joined: 28 Jan 2004 Posts: 1970 Location: El ombligo de la Rep�blica Mexicana
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Posted: Mon Sep 08, 2008 6:25 pm Post subject: Re: Moving to Mexico - The Long View |
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Guy Courchesne wrote: |
Browsing around online, I came across some interesting stats on the Mexican economy, politics, and life in general here. Here's one place...
http://en.wikipedia.org/wiki/Mexico#20th_and_21st_centuries
Confirms a lot of what I've noticed in my several years here. Living and working in Mexico City was already like going national in Canada, given the population here. Living standards for me have always been on a par with where I come from, and rising each year I'm here. Mexico City folk, to my eye, have seen a large growth in living standards too.
One stat that caught my eye on the website linked above is the prediction that Mexico will displace most European countries, as well as Canada, on wealth and the size of the economy. |
Considering that Mexico's second or third largest source of foreign revenue is from remittances from poor Mexicans who are working in the US, I don't see the above prediction (my underlining) that Guy mentions coming true in the near future. I wouldn't rely on entries from wikipedia to bolster these arguments, Guy, unless they refer to really reliable sources! |
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john_n_carolina

Joined: 26 Feb 2006 Posts: 700 Location: n. carolina
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Posted: Mon Sep 08, 2008 8:12 pm Post subject: |
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....within 10-15 years, this could be somewhat true as compared to E.European countries (Romania, Slovakia, etc) and maybe Northern Northern Canada.
as far as W.Europeans countries GDP and export value, i doubt it. but, Mexico does have oil, and that could be a huge export value someday if the price of gas does reach W.European standards or the price of a barrel gets up past $200. |
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dixie

Joined: 23 Apr 2006 Posts: 644 Location: D.F
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Posted: Mon Sep 08, 2008 9:25 pm Post subject: |
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johninmaine wrote: |
....within 10-15 years, this could be somewhat true as compared to E.European countries (Romania, Slovakia, etc) and maybe Northern Northern Canada.
as far as W.Europeans countries GDP and export value, i doubt it. but, Mexico does have oil, and that could be a huge export value someday if the price of gas does reach W.European standards or the price of a barrel gets up past $200. |
They just need to figure out how to get it! |
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Guy Courchesne

Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City
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Posted: Mon Sep 08, 2008 9:29 pm Post subject: Re: Moving to Mexico - The Long View |
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MO39 wrote: |
Guy Courchesne wrote: |
Browsing around online, I came across some interesting stats on the Mexican economy, politics, and life in general here. Here's one place...
http://en.wikipedia.org/wiki/Mexico#20th_and_21st_centuries
Confirms a lot of what I've noticed in my several years here. Living and working in Mexico City was already like going national in Canada, given the population here. Living standards for me have always been on a par with where I come from, and rising each year I'm here. Mexico City folk, to my eye, have seen a large growth in living standards too.
One stat that caught my eye on the website linked above is the prediction that Mexico will displace most European countries, as well as Canada, on wealth and the size of the economy. |
Considering that Mexico's second or third largest source of foreign revenue is from remittances from poor Mexicans who are working in the US, I don't see the above prediction (my underlining) that Guy mentions coming true in the near future. I wouldn't rely on entries from wikipedia to bolster these arguments, Guy, unless they refer to really reliable sources! |
Currently, yes. Try the long view, however. Who would fault Mexicans (or any of dozens of nationalities) in taking advantage of remittances? Al of that is money bleeding out of first world economies and into the third world.
Mo, that wiki entry is simply a good summary of what's available on info. Which of the two dozen sources to the article did you think not reliable? |
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MELEE

Joined: 22 Jan 2003 Posts: 2583 Location: The Mexican Hinterland
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Posted: Mon Sep 08, 2008 10:44 pm Post subject: |
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dixie wrote: |
johninmaine wrote: |
....within 10-15 years, this could be somewhat true as compared to E.European countries (Romania, Slovakia, etc) and maybe Northern Northern Canada.
as far as W.Europeans countries GDP and export value, i doubt it. but, Mexico does have oil, and that could be a huge export value someday if the price of gas does reach W.European standards or the price of a barrel gets up past $200. |
They just need to figure out how to get it! |
Yes, because the current tapped reserves will run out in about 8 years! (Source: My brother-in-Law, Instituto Mexicano de Petroleo Research Engineer) That's why there is such a push to move into deep water drilling in the gulf ASAP.
As to the original question. I get this all the time too--so does my husband, people always ask him if he has an American wife, what the heck is he doing in Mexico? His answer is easier than mine--he's getting a free PhD. Certainly not going to get that on "he other side". There are so many benefits to living here--I think its sad to see how many people around me don't see the simple pleasures their country has to offer--and want to change that for the cheap material goods mine offers.  |
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Guy Courchesne

Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City
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Posted: Mon Sep 08, 2008 11:05 pm Post subject: |
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Quote: |
Yes, because the current tapped reserves will run out in about 8 years! (Source: My brother-in-Law, Instituto Mexicano de Petroleo Research Engineer) That's why there is such a push to move into deep water drilling in the gulf ASAP. |
This is true...they have some ads in the metro here that show two glasses, one full, one half-full. In the half-full glass, there is a straw that slants at the bottom, tapping the full glass. The ad exhorts the need for Pemex to get to the deep water oil before 'other' countries do (hmm..other countries? which ones would those be?). Big money in the last few drops to be had.
Quote: |
....within 10-15 years, this could be somewhat true as compared to E.European countries (Romania, Slovakia, etc) and maybe Northern Northern Canada.
as far as W.Europeans countries GDP and export value, i doubt it. but, Mexico does have oil, and that could be a huge export value someday if the price of gas does reach W.European standards or the price of a barrel gets up past $200. |
Well, Canada has been steadily dropping relative to other economies, and earns its place in the G8 more for manner of income than true economic size. Mexico is only a few hundred million dollars behind Canada on economy size...not GDP (an important distinction that affects individuals over total wealth). GDP in Mexico is going to take a lot longer to catch up to the richest countries as income disparity in this country is still very wide. Mexico is already larger an economy than the majority of EU countries (including W European), and climbing.
However, oil isn't the only measure of wealth. Like Canada, Mexico is heavily reliant on its primary sector, which includes oil, agriculture, and mining. Copper, gold, and silver are enormous industries here. There's also the massive service sector, which is exploding in comparison to other countries. The simple explanation for that is that most western countries are already developed to high standards whereas Mexico was playing catch-up throughout the last decade. |
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FreddyM
Joined: 05 Jan 2006 Posts: 180 Location: Mexico
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Posted: Tue Sep 09, 2008 12:26 am Post subject: |
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M@tt wrote: |
this was my favorite statistic:
"the top 20% of income earners account for 55% of income." |
I don't know if any of those statistics are reliable, but that doesn't strike me as being that unevenly distributed. For comparison, in the United States....
The most common measure used, and the most understandable is: what share of total wealth is owned by the richest households, typically the top 1 percent. In the United States, in the last survey year, 1998, the richest 1 percent of households owned 38 percent of all wealth. ....
.....The top 5 percent own more than half of all wealth.
In 1998, they owned 59 percent of all wealth. Or to put it another way, the top 5 percent had more wealth than the remaining 95 percent of the population, collectively.
The top 20 percent owns over 80 percent of all wealth. In 1998, it owned 83 percent of all wealth.
Granted, we're talking wealth here (assets) rather than income, but it gives you an idea of inequality in comparison to a relatively rich country with a solid middle class.
I wonder what percentage of the national wealth Carlos Slim himself
possesses.
http://multinationalmonitor.org/mm2003/03may/may03interviewswolff.html |
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Guy Courchesne

Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City
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Posted: Tue Sep 09, 2008 12:39 am Post subject: |
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Quote: |
I wonder what percentage of the national wealth Carlos Slim himself
possesses. |
8% of the Mexican economy was one stat I'd read late last year. |
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MO39

Joined: 28 Jan 2004 Posts: 1970 Location: El ombligo de la Rep�blica Mexicana
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Posted: Tue Sep 09, 2008 2:08 am Post subject: Re: Moving to Mexico - The Long View |
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[quote="Guy Courchesne"]
MO39 wrote: |
Guy Courchesne wrote: |
Considering that Mexico's second or third largest source of foreign revenue is from remittances from poor Mexicans who are working in the US, I don't see the above prediction (my underlining) that Guy mentions coming true in the near future. I wouldn't rely on entries from wikipedia to bolster these arguments, Guy, unless they refer to really reliable sources! |
Currently, yes. Try the long view, however. Who would fault Mexicans (or any of dozens of nationalities) in taking advantage of remittances? Al of that is money bleeding out of first world economies and into the third world.
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There's nothing wrong with Mexicans taking advantage of remittances. To my mind, the problem is that the reason why so many Mexicans are flowing to the United States to work is that their own country offers them no opportunities to make a decent living. This flow of cheap, cheap labor over the border leaves in its wake depopulated rural communities and small towns depleted of men in their most productive years. From what I've read of the money that flows back is that most of it goes into building large new homes for the family left behind, rather than into creating small businesses that might provide jobs for the next generation. |
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guatetaliana

Joined: 20 Feb 2008 Posts: 112 Location: Monterrey, Nuevo Le�n, Mexico
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Posted: Tue Sep 09, 2008 5:48 am Post subject: |
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To add to MO39's point, the fact that Mexico sees so much of its wealth coming from its own nationals working in the US is not a very solid predictor of future economic growth. That source of income is already declining as the US steps up deportations and general policy in the US has turned anti-illegal immigrant. Now with the real ID act enabled in nearly every state, most illegal aliens are no longer able to have driver's licenses, meaning that a lot of formerly lucrative jobs have become impossible. The downturn in the housing market has hit construction workers and anyone involved in trades, building, landscaping, etc. As it becomes more expensive for immigrants in the US to provide for their families on the northern side of the border (gas, groceries, mortgage payments), they are sending less to their families in Mexico.
My point is not that Mexico shouldn't be taking advantage of this unstable source of income (although the fact that this income is necessary at all really points to a dramatic deficit in Mexico's internal economy!). But as MO39 pointed out, depending on having your own citizens working illegally overseas is never a strong way to build your own national economy. I simply don't see how Mexico can rise to a European-level wealth when this is the present reality. |
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thelmadatter
Joined: 31 Mar 2003 Posts: 1212 Location: in el Distrito Federal x fin!
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Posted: Tue Sep 09, 2008 3:49 pm Post subject: un PC view |
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for my un-PC 2 cents.
Like Guy, I am optimistics about Mexico's long-term prospects. In the five years I have been here, I have seen some hopeful signs... more talk and some effort into combating corruption here and yes, Felipe's election. AMLO represented the old way of doing things here... lots of blustering and promises.. but a cacique's mentality. While results are mixed, at least Felipe tries to base his credibility on deeds.. not rileing (sp?) up the masses. AMLO is pretty much a laughing stock and at least a good portion of his party realized that they cant do business like that anymore.
In many countries, results like those in 2006 would have resulted in violence, perhaps civil war. That it didnt here is a very hopeful sign in the long run.
However, one historical reality I dont see changing anytime soon and probably Mexico's biggest stumbling block... this idea that everything revolves around Mexico City and the rest of the country is for the city to exploit and discard, as it sees fit. Living in DF, and looking around, it is kind of easy to see Mexico as a potential economic power... but all you have to do is go outside of it to quite a few areas of the country and its like walking 100 years or more into the past.
Now for the un-PC part. Much of Mexico's progress does come from the fact that it is next to the US. They compare themselves to the US all the time. That gives them an inferiority complex but I think that without it, they would be more like Central America and South America.. for whom the US is just a distant speck on the horizon. Mexico has to compete (and cooperate) with the US economically, for better or worse. And it does poorly when it tries to ignore or counter that reality. Monterrey does well (and much of the north for that matter) because it has accepted that reality better than the rest of the country. Mexico City does well for the same reason it did well under the Aztecs... tribute (just collected in a different manner) If you dont believe it, just talk to businesses in Monterrey who spend a lot of effort trying to keep the chilangos' paws off the money they earned.
The south of this country fares the worst. More removed from international contact, and hell bent on keeping everything the was it was 100-1000 years ago. Problem is you cant have the benefits of a modern society and insist that you dont have to accept a modern economic or political system.
This is why you had the PAN - PRD split so strong North-South.
Real change is happening in Mexico... resulting in increased pressure for more change.. mostly from outside of Mexico. Could you imagine what would happen here if/when the US really decides to send back a lot of those illegal immigrants, who have had a taste of a first-world economy? (probably why the powers-that-be dont want Mexicans in the States to vote and why the US should work to make that a reality) |
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M@tt
Joined: 16 Jan 2003 Posts: 473 Location: here and there
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Posted: Tue Sep 09, 2008 5:27 pm Post subject: |
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my post wasn't serious, since i don't take that statistic seriously.
does anyone really believe that half the wealth is spread among 20% of the people in mexico? that would be really impressive if it were true. but i'm not convinced.
melee why doesn't your husband get a free ph.d. in the US like everyone else? nobody pays for a ph.d. unless they're unemployable. |
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