Introduction
There seems to be an issue with the 4T government and Morena party, as Mexico’s economy has failed to grow. With the official third-quarter results showing a 0.3% decline, if no significant improvement occurs in the final quarter and by 2026, Presidents Andrés Manuel López Obrador and Claudia Sheinbaum will have led the 13th-largest economy in the world to stagnate for eight years. This would result in a nearly lost decade of creating substantial formal, fixed-term jobs with good wages, ensuring an adequate education level for Mexican children and youth to compete globally, fostering a robust middle class contributing more taxes, and genuine poverty reduction.
Historical Context and Promises
To gain power, the current ruling group was vocal about Mexico’s low growth, claiming an average of 2.5% annual growth over the past six presidential terms. For 36 years, this average annual growth was higher than population growth, allowing each Mexican to escape poverty without returning. Based on all predictions, including official ones, the economy will achieve a mere 0.6% growth by the end of the second year of the current presidency. After deflating this figure with population growth, the result is a dismal -1.4%, the worst in decades. This economic crisis occurs despite having 62 billion pesos (10 million being debt) to spend on behalf of taxpayers, the true owners of public money.
Current State of Affairs
Today, Mexico is more indebted than in 2018, with no growth prospects and a gloomy economic future. Despite having access to a massive amount of money, there is no growth evident in hospitals lacking medicine, dilapidated schools without maintenance, pothole-ridden roads, and nonexistent security. Government offices are in disrepair, lacking even basic supplies like toilet paper and soap. Where has the money gone? While past governments have been accused of corruption, they at least delivered growth and basic services like hospitals, accessible schools, and infrastructure. The reality is undeniable.
Key Questions and Answers
- What is the current state of Mexico’s economy under the 4T government? The economy has stagnated, with a 0.3% decline in the third quarter and projections indicating only a 0.6% growth by the end of the second year, which deflates to a dismal -1.4% when accounting for population growth.
- How has the government utilized available funds? Despite having access to substantial financial resources, there is a noticeable lack of investment in essential services such as healthcare, education, infrastructure, and public security.
- What are the potential consequences of this economic stagnation? Mexico risks a nearly lost decade of job creation, educational advancement, middle-class growth, tax revenue increase, and poverty reduction.
