Saturday, July 18, 2009

Bad News for Regular Mexicans

Presumably the prompt for the poll mentioned in the previous post was the National Survey on Household Income and Expenses (ENIGH). It found that the crisis has spurred inequality and decreased quality of life in Mexico; after advances in relevant indices from 2004 to 2006, the last two years have borne witness to a regression to 2004 levels or below. For instance, the proportion of national income of the bottom 60 percent of the Mexican people slipped from 27.6 to 26.7 percent, below the 2004 level of 26.9 percent. The share of the top ten percent ticked up from 35.7 to 36.3 percent, one point above the 2004 level. The mean income of Mexicans slipped from 12,433 to 12,231 pesos per month. (The article calls this a decline of 1.6 percent in real income, but I believe that would be the nominal decline, with the real incline being significantly greater with inflation from 3 to 5 percent annually over that period. Or am I mixed up?) The raw poverty number is likewise worrying: according to a researcher cited in the article, the slice of Mexicans below the poverty line jumped from 42.6 percent to 53.5 percent of the population. 

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