Mexico: from AMLO to Sheinbaum – Michael Roberts
“AMLO’s presidency improved the lot of the bottom 50% of Mexicans. However, the fundamental problems of a weak economy, underinvested by capital, of extreme inequalities of income and wealth, of high levels of corruption and crime (with drug cartels running free), have not been resolved.”
“…What about inequality of incomes and wealth? Well, according to the World Inequality Database, in 2012, the top 1% of Mexican income earners took 27.4% of all personal income and the top 10% took 64.1%, while the bottom 50% took just 5.4%. The latest figures are for 2022 and they show the top 1% taking 26.8% and the top 10% taking 64.6%, while the bottom 50% had just 6.0%. So there has been no visible improvement in income inequality under the AMLO years.
“Professor Aberlardo Marina, economist at Universidad Autónoma Metropolitana Mexico, shows that AMLO’s program of raising the minimum wage levels and other social benefits has helped incomes for those at the bottom. In the last six years, the minimum wage increased by 82% and manufacturing wages rose 27%.
“As a result, the share of GDP going to labour has increased from a low under the pro-capitalist Pena presidency at 24.6% in 2012 to 27.6% in 2022, while the profit share has fallen back. But the share going to labour is still way down compared with the 1970s before the onset of neoliberal policies adopted by pro-capitalist governments in Mexico (and globally). Then wage share fell and profit share rose.”