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the purchasing power of the minimum wage in Mexico has declined to alarming figures. This is a brief overview of this important factor for the country.
It’s not foreign to any Mexican, or most, that wages “do not reach for anything” and this more a common phrase or exaggeration may well be very true, that if we observe that the minimum wage in Mexico is classified as the lowest in Latin America and among member countries of the Organization for Cooperation and Development (OECD).
more than this, because the purchasing power of the minimum wage has been reduced by just over 70 percent . In a r efciently meeting of experts and the National Commission on Minimum Wages (Conasami), President of the latter, Basilio Gonzalez Nunez, he stated that the minimum wage in Mexico should amount to at least 200 pesos per day . Recall that is currently 73.04 pesos and is approved throughout the Republic, because since 2016 the geographical areas that distinguished different amounts of the minimum wage were eliminated.
So, rising 2.94 pesos that had the minimum wage to the entry of this 2016 is also negligible in itself and because it does not cover the call Canasta Obrera Indispensable (IOC) or the Food Basket Recommended (CAR) parameters used to determine the level of life workers. In fact, over the decades and presidential terms, the purchasing power of the minimum wage against IOC has accumulated a loss of purchase of 83.62% .
Only 2 million 56 thousand people (1.7 percent of the population) can access this basket
to understand more about what integrates IOC support us with the explanation investigación 122 CAM “ The IOC represents the price of a weighted basket of daily use and consumption, to a working class family of 4 (2 adults, one / a girl and a / a child / a, composed of 35 goods and services (27 food, 3 personal care products and home, transportation (metro, metro bus or minibus), electricity, gas and water basket. It does not include other expenses such as rent . housing, clothing and footwear, education, health, entertainment “
Also, the CAR is defined as follows:” CAR (recommended-model-perfect basket) is a basket weighted , use and daily consumption for a Mexican family of 4 (2 adults, one (a) young (on) a child (a) . for its content, structure and weighting for daily consumption, they were considered nutritional aspects, diet, tradition, cultural habits. it was defined by Dr. Abelardo Avila Curiel National Institute of Nutrition Salvador Zubirán. it is comprised of 40 food, its price does not include expenses in their preparation. “this is not expenses included in payment of rental housing, transportation, clothing footwear, etc.
There is, then, little true for the vast majority of Mexicans, the phrase “not enough for anything.” In fact it has been documentado very few people manage to cover the basic food basket, in 1982, 94.30% of workers could cover the cost of the IOC, while in 2006 only a 16.26% did .
Raise the minimum wage or not …
According to the president of the (Conasami) the minimum wage should be 200 pesos, however, a resolution of increase in wages involves many things, is that the subject experts do not express a unanimous solution and yes there are many voices declaring to increase the amount of the minimum wage would bring unemployment and inflation. The first because for employers would be much more difficult to cover salaries with the increase and therefore would have to cut staff; the second because there would be an increase in demand, as people and families have more income; an increase in inflation is also contemplated that the value of services and processes increase.
On the other hand, is what is called in economics “effect lantern” which refers to a phenomenon the minimum wage when reference is used to provide other aspects within the same economy ; for example, in Mexico, the minimum wage is used to set amounts in criminal or traffic fines or to establish scholarships and insurance, among many other things.
So the minimum wage increase should be accompanied many other measures in the economy to keep it as stable as possible. What certainly is undeniable is that has reached alarming figures both falling purchasing power of the minimum wage , and other phenomena that make this country one una big difference in the distribution of wealth and great inequality, one where poverty has grown 58% in 42 years; a country in which one of the most consumed foods has doubled in price in the last 10 years . It is noteworthy that in 2013 it was estimated that the number of Mexicans who can not afford the basic food basket amounted to 102 million 425 thousand.
March 14, 2016
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