Mexico’s Rising Economy and Middle Class [1]
Recent openings of economic markets and an end to the Mexican central bank’s tendency of completely financing the government’s actions, have led to a significant rise in Mexico’s middle class. The country has seen an increase in price stability, which has led to more wealth coming into the area as well as an overall wealth accumulation of the peso in the social structure of Mexico. Inflation has also gone down in the country because of many influencing economic factors. This has resulted in an increase in investor confidence in the country and therefore a rise in long-term bond interest from international investors has occurred. The North American Free Trade Agreement [2] (NAFTA) with the United States and Canada has helped open up the economy for Mexican residents, giving them the ability to buy products at increasingly competitive prices. In addition, the North American Tree Trade Agreement has also generated new jobs in diverse sectors of the Mexican economy [3].
In an influential new book called “Mexico: A Middle Class Society” by authors Luis de Calle and Luis Rubio, the intricate happenings of the ever-shifting Mexican economy are documented. The authors declare in the book that today, “the middle class population is the majority in Mexico.” They go on to say that this rise in Mexico’s middle class has transpired, “by combining the income of various family members (including remittances from abroad) rather than through the increased income of an individual or couple.”