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

  • Florida Shooting Survivors Rally for Stricter Gun ControlsFlorida Shooting Survivors Rally for Stricter Gun Controls
  • Taxi drivers aim to recover 40% of lost customers from UberTaxi drivers aim to recover 40% of lost customers from Uber
  • Billionaire Hotelier to Sell Hotel Reservations in SpaceBillionaire Hotelier to Sell Hotel Reservations in Space
  • Despite Price Deregulation in Mexico, Gasoline Continues to RiseDespite Price Deregulation in Mexico, Gasoline Continues to Rise
  • Mexican agrifood sector rallies onMexican agrifood sector rallies on
  • Animal trafficking: a multi-billion dollar business on the rise in MexicoAnimal trafficking: a multi-billion dollar business on the rise in Mexico
  • Mexico will become the 7th world market for solar energyMexico will become the 7th world market for solar energy
  • The richest Latino in the U.S. arrives in Mexico with realty projects worth $2bnThe richest Latino in the U.S. arrives in Mexico with realty projects worth $2bn
  • SkyAlert App can save lives in an earthquakeSkyAlert App can save lives in an earthquake
  • Artificial Intelligence is Transforming Mexico’s Financial SectorArtificial Intelligence is Transforming Mexico’s Financial Sector
  • Mexico’s IRS Chief Evaluates Blacklisting the United States as a Tax Haven (REFIPRE)Mexico’s IRS Chief Evaluates Blacklisting the United States as a Tax Haven (REFIPRE)
  • AmericaAmerica's Passion for Guns: Ownership and Violence by the Numbers
WATCH LIVE TV



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

Language

Mexico News Network
All rights Reserved 2018