Background on the Subject
For decades, certain leftist groups criticized neoliberal policies, technocratic governance, and insensitive right-wing leaders. However, now that these groups have experienced power firsthand, they find utility in the very policies they once denounced as detrimental.
Currency Strength and Free Trade
The Mexican peso’s historical struggle against the US dollar stems from past devaluations. Yet, the current administration’s praise for the peso’s strength is merely a disguise to avoid confronting the reality of a slowing economy losing jobs.
- Job Losses: In May alone, nearly 46,000 fewer jobs were registered in the IMSS, marking the worst decline for a fifth month of the year since records began—excluding the COVID-19 pandemic.
- Remittances: The administration incorporates remittances into its narrative as a success of its management, despite these being the result of historical failure to retain Mexicans within their home country.
Shifting Stances on Key Policies
Leftist groups now advocate for free trade and individual retirement accounts managed by Afore, despite not doing so out of conviction. This shift is driven by the pragmatic understanding that these policies work in practice.
- Trade Agreements: Once criticizing the TLCAN as a deepening of neoliberal models, these groups now strive to maintain free trade with the United States, acknowledging it as a beneficial decision for Mexico’s economy.
- Pension Reform: Previously promising to abolish the individual retirement model for state workers and teachers, the current administration has accepted the impracticality of fulfilling this promise due to financial constraints.
The Reality of Policy Defense
While boasting about currency parity might be a narrative tactic, defending free trade and the financial stability provided by the current pension system is grounded in reality. Changing this model would likely cause a deep and immediate crisis.
Unlike other decisions, such as dismantling educational or energy reforms, or the appropriation of the Judicial Power, the consequences of these policy shifts may not be immediate but rather unfold over time when others assume power.
Key Questions and Answers
- Q: Why have leftist groups changed their stance on policies they once criticized? A: After gaining power, these groups have recognized that certain policies, like free trade and currency stability, are essential for a functioning economy.
- Q: How do leftist groups justify their support for free trade and individual pension accounts? A: They acknowledge these policies’ practical benefits, despite not aligning with their ideological roots.
- Q: What are the consequences of altering the current pension system? A: Changing this model could lead to a profound and immediate crisis, unlike the delayed impacts of other policy shifts.
