US Commerce Secretary wants a higher minimum wage - in Mexico

By Elliot Bullman

In a recent CNBC interview, US Commerce Secretary, Wilbur Ross, argued that one of the problems with NAFTA is that the minimum wage in Mexico hasn't climbed as fast as it should.

Portada salario minimo

"The theory of NAFTA had been a gradual convergence of living standards between Mexico and the United States," he said. "That really hasn't happened on the Mexican side. The minimum wage...has barely gone up in peso terms."

That means that employers can still find significantly cheaper labour in Mexico. It also means that Mexican workers don't have the money to buy higher-priced U.S.-made goods.

“The peso has depreciated quite a lot against the dollar," he told senators. So on a purchasing power basis, the average Mexican worker is far worse off than he or she was five or 10 years ago. That was not the original intent of NAFTA."

working 1158515_960_720

Ross is actually wrong when he says that the Mexican minimum wage has “barely gone up in peso terms.” The Mexican minimum wage has increased 11 times since 2009, rising by about 50%. The U.S. minimum wage has not increased since 2009.

But even with all those increases, the Mexican minimum wage is a fraction of the U.S. minimum wage. Workers in Mexico must be paid at least 80 pesos a day, which works out to only about $ 4. The U.S. minimum wage is $ 7.25 an hour.

6355360253_30e095425d_b

RELATED NEWS

  • North Korea threatens to cancel Trump summitNorth Korea threatens to cancel Trump summit
  • AMLO’s win could be a landslide with congressional majority: UBSAMLO’s win could be a landslide with congressional majority: UBS
  • Google and Facebook, big winners after ban on sports betting was overturnedGoogle and Facebook, big winners after ban on sports betting was overturned
  • Would you pay your ex a Would you pay your ex a 'break-up fee'?
  • Why Trump suddenly reversed course on sanctions against Chinese tech giant ZTEWhy Trump suddenly reversed course on sanctions against Chinese tech giant ZTE
  • Are you ready for retirement? Here’s how to know.Are you ready for retirement? Here’s how to know.
  • Tariffs on steel for Mexico and Canada will depend on NAFTA: RossTariffs on steel for Mexico and Canada will depend on NAFTA: Ross
  • Sergei Skripal reportedly briefed European intelligence agencies about RussiaSergei Skripal reportedly briefed European intelligence agencies about Russia
  • The EUThe EU's billion-dollar deals at risk in the Iran nuclear deal
  • Pompeo: U.S. firms could invest in North Korea and Kim may get ‘security assurances’Pompeo: U.S. firms could invest in North Korea and Kim may get ‘security assurances’
  • 'Unauthorized transfers' siphon funds from Mexican banks: central bank
  • RBS is swallowing a RBS is swallowing a 'milestone' $4.9 billion fine for its role in the financial crisis — and shares are going up
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2018