Facts about the Mexican middle class

1. The ranks of the middle class — defined as $7,200 to $50,000 a year — have risen to about ten million families.

2. That is almost 40 percent of all Mexican households.

3. The country is in the middle of a housing boom.  560,000 new homes were built last year — a record — and 750,000 are expected for 2006.

4. Annual inflation is down to about three percent and over the last two years interest rates on 20-year mortgages have fallen from 18 to 8 percent.

5. Sales of home appliances have tripled in the last ten years.

Those facts are from Business Week, 13 March edition.  Each time I visit Mexico, the more I am convinced that country has turned the corner.  Here is an earlier post on undervalued nations.  See here also.

Comments

Re-reading the undervalued nations thread, it's pretty clear now that Iraq wasn't undervalued.

- Josh

To what extent could we attribute this to free trade?

[If in dollars, why define middle class that way? There is huge spread, going from 7k to 50k a year (esp. in a country like Mexico!)]

Middle class status in other countries is not defined relative to the US.

Perhaps an increasing middle class will push
for a reform that decreases political and
government corruption. Then Mexico and America
can be true economic partners in which both
citizens prosper mutually. Or am I dreaming?

$7,200 to $50,000, eh? That is quite a spread. Anyone care to wager
which end of that most of these 10 million families are clustered? And
remember Mexicans have bigger families than Americans. I suspect the mean
family from Tyler's survey earns $14,000 for a family of six. That's not
"middle class" in any sense Americans would recognize. You can call it
middle class if you want, but it's still $2,333 per person per year.

Come on, Tyler. You're usually reliably realistic!

Poor roads, poor infrastucture, no socials services. It is a shame that a nation with so many hard working people and so much in natural resources should suffer this way due to an inept kleptocracy.

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