Monday, July 10, 2023

Mexico Will Not Be The Next China | Economics Explained


Mexico has two huge issues: no linkage between the floor industrial centers and the oceans and/or U.S. internal waterway system. Absent political unity, there is no chance of expanding the Rio Grande to provide this (were it even possible hydrologically - no adequate headwaters) AND no major rail hub in the southern US that could integrate Mexican rail and transfer adequate tonnage to rival Chicago.

Development of Mexico and Chinese workforces and subsequent political development would require domination of the US market by firms with employee ownership and effective control, combined with cooperative consumption and finance and a willingness to expand such a system to overseas subsidiaries and supply chains with transfer pricing based on an equal standard if living for each class of labor.

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