Mexico has great potential. It could never replace China but it definitely could become a significant regional manufacturing hub for the Americas. Remember, China too faced issues related to corruption and crime before it modernized. The future for Mexico is bright.
The fact is that mexico is providing manufacturing, and cheaplabor,without the enfringment of inspectors that protect the environment, and is a lot closer than china,mexico can never compete with a communist superpower like that,and due to the coruption, organize crime,the total coruption of the Mexican government, is gonna keep mexico from been a first world country!..ashame cause millions of people that died in the revolution and been robbed of almost half it's territory,,mexico deserves to be better!
How is this different from what already has been? México in the last 20 years at least is a regional manufacturing hub for the United States. Has this brought better living conditions? No
I feel like comparing Mexico and China and the roles they will play in the future global economy without even mentioning the current and forecasted demographics of the two is a huge oversight.
The entire video is an oversight the guy clearly doesn’t like that there is a popular leftist government in power that is nationalizing private sectors owned by america in Mexico
@@hydraz2I just don’t think demographic information is relevant to a nations future production statistics. The current demographic data can’t control for immigration waves and innovations in automation. We might very soon be living in a world where only a single person is operating an entire fast food joint, remotely.
As an American who spent much of my working life in Texas, I can certainly attest to the brain drain of the best and brightest of Mexican universities.
@@squishyfaceguyexicans engineers don't go to USA 😂 mxcn engineers are going to west and east Europe. You probably got a venezuelan engineer and confused him for a mxcn 😂😂
Last year Mexico surpassed Spain, this year surpassed Australia, and in 2045 will be undoubtedly the 6th largest economy of the planet. Even with corruption and even with the safety issues this is taking place… just imagine if they manage to get rid of that.
Well the 🇺🇸 “KEEPS ALLOWING THERE WEAPONS” to go south of the border keeping Mexico more dangerous than it would be. Also the demand in the IS is to big for the cartels to stop.
A "next China" probably isn't ideal either, as the efficiency of a single source also means the efficiency of a single shock leaving you stranded. Hence the "derisking" divestment and diversification from China and Russia before another Dynamic Zero-COVID or Special Military Operation breaks out.
@@doujinflipYes. Therefore equality and cooperation is the answer. The US and China want to tackle this derisking thing by building up their own economies at the expense of others because they have a lot of imperialistic leaders. It's not possible to thrive as an island and being an island is risky.
@@doujinflip I find it kinda funny seeing non-American westerners celebrating Mexico as the 'next China'. For two reasons - 1) Mexico is only partially displacing China for ONE western nation, the US. It barely makes a dent into Europe's reliance on China, so it's laughable to see them hailing it as a savior. 2) Quite a bit of that foreign investment into Mexico is actually FROM CHINA, for the same reason everyone else is investing into Mexico. And hence the profits from those investments go to China.
I think the painful lesson Covid and Ukraine taught large companies and governments is the importance of having a domestic supply of EVERYTHING when possible and if you're importing don't put your manufacturing eggs in one basket. There will never be another China, it's too risky.
it was always too risky and i have been making that argument for over a decade in the field. no one wanted to listen because profit trumps security. i suspect that the buisness world will be a bit shy about risk for say 3-5 years but that already some companies are taking more risks to profit while others don't if even a small number of them see massive growth or profit everyone will want to be the next one. thats how just in time production got started in the first place. nevermind less risky practices that got scuttled by the pandemic. I don't think there will be another china. I think there will be MANY other china's.
well, some Large Corp CEO, from Car companies to Chip companies, openly said they actually like the shortage, which cause them to making record profit by jacking up price.
The lesson will be learned short-term, then forgotten because it is cheaper to put all your eggs in one basket than buy multiple baskets (until the next time you drop all your eggs, but who's gonna do that?!)
I loved your video. Most videos are just about what Mexico can do for developed countries. In your video you also analyze what all this means for the citizens of Mexico.
I live in Mexico, right in the border from San Diego and I can confidently say that our biggest problem is the constant crime activity; specially in my city. I seriously hear about one or two incidents every single day that happen in my neighborhood… Can you imagine how many incidents happen in the whole city? It’s sad and frustrating because you can’t even trust the government nor the police/army.
Having lived in the US and now living in Mexico, they have a completely different culture. It’s built upon community, not individualism (although people here are very self expressive). They view family and social connections as more important than career or economic status. In fact, in almost every new conversation with a Mexican person, they rarely ask me what I do for the living, that’s the first question in the US. Mexicans purposely enjoy a slower pace of life, which is refreshing after years of grinding it out on the US hamster wheel. I can’t see Mexico ever having the desire to become the world’s top economy, domination is not in their overall culture (of course except cartels). Other countries could learn from Mexico about being more kind, community oriented, having respect for elders, caring deeply for children and stopping to smell the roses…
What will blow your mind is that Mexico will be one of the strongest economy in the world and they'll still be kind and love family. It is your choice if you want to live the USA style but that has nothing to do with success
This is perhaps true in the particular community that you live in, but when you look at levels of domestic violence, crimes against children, the lack of an even nominally effective or fair judicial system, and the fact that large swaths of the country are controlled and completely governed by criminal cartels, it’s difficult to agree with your comment.
Well, practically the cartel issue is usa fault and of their population so when the usa start doing something to prevent the drug consumers it will end
I would love to see the assessment of Indonesia as well, just like Mexico, it's always been overlooked as a country, both Mexico and Indonesia do have the potential to be much more significant on the world stage.
Mexico hasnt been underlooked, it's rich resources and labor force has been historically looted by Europeans. The french Mexican war that battled for control of mxcn mining industry, us Mexican war where us took 50% of mxcns real estate. British mxcn Mayan war that looted Mexico's Hennepin / rubber tire industry. NAFTA and destabilization of MX peso by US Mexico joins Brics , no brainier. Indonesia will rise faster than Mexico in 2030 bc it's safe and far away from USA.
The biggest problem with Mexico and Central/South American countries is that they are held back by people who only have their own self interest at heart. A few bribes and some people get rich while an entire nation's future suffers.
isn't that also the case of China? China has lots of problems, especially with its housing market scheme. many economists say that Chian will have an economic collapse because if the housing bubble. and all empires fall eventually. China won't grow anymore because it has already reached its maximum potential and most tof the country is developed. China will basically become like Japan. there has been no economic growth in Japan for over 40 years.
I am not an economist, but I do feel that Mexico is ideally located to be an economic superpower. I hope they establish strong economic relationships in both production and service industry across the globe.
@@Kardriel1 How many Global Fortune 500 companies does Mexico have in 2022? China has 145, USA has 124, Japan has 47, Germany has 28, France has 25. Mexico has a loooooog way to go.
Enforcing the rule of law is essential for a country to become a manufacturing hub and sadly Mexico has too much corruption and crime. Say what you will about China but they will come down with an iron fist if they have to, Mexico can't (or won't) do that.
The new government is doing its part they implemented the National Guard. Its is. the Judicial system that its corrupt the Judges that had been put there by former corrupt goverments Norma Piña an enemy of the president has have obstructed reforms like bringing to Justice high officials and even former corrrupt presidents. The Judicial system its its problem until its gets clean Mexico wont advance much.
Mexico can be plenty ruthless, main issue is you can't change a culture overnight. It takes time and that's what the manufacturing industry can do for mexico.
Mexico is getting 40 Million tourists more than Canada’s population and more than the tourist visiting Chile, Brazil, Colombia Republic Domenican, Argentina combined together
Mexico is like a very dry sponge when it comes to capital. It can soak up a lot but it doesn't immediately grab the moisture, because water is sticky and likes to stick to itself. A damp sponge is more ready to absorb moisture. Money and development likes to chase existing development in the same way that water clumps together. Most of Mexico has been capital starved for a very long time and it takes a good while for the process to start compounding like it should because in many regions there wasn't anything there. Infrastructure is difficult over most of the country and human capital is poorly utilized.
@@quigongio5584 The poor in the US have material wealth and food security more in line with middle class pretty much anywhere in the world. Including Mexico.
@@joseph1150I'd be inclined to agree, being a local to Latin America. It's a bit iffy discussing it with Mexicans though. Blind nationalism tends to be both annoying and a great way of missing the point.
Mexico still has a great opportunity to develop. The US is invested in Mexico. A better performing Mexico is better for the US. Immigration would be helped a ton. A market to sell. Safer for tourism. Better ability to fight drugs. A strong Mexico is good for the US. A Weak Mexico is good for China. China can then use it as a proxy if it is weak.
Banking of the underbanked in Mexico is very strongly driven by remittances. Senders lost a lot of the money sent via fees from traditional ways of remitting money like Western Union. There was also price fixing and abuse by some of the sender companies when they had more of a monopoly. So some banks, pre paid cards and apps started emerging over time to get remittances to people around the world. A video on the worldwide phenomenon of remittances could be a good idea.
Mexicans empowered by remittances would never allow themselves to be enslaved by their immediate authorities. Unless remittances are contraband, "poor" working class Mexicans will never accept lower wages than their counterparts in Asia.
As a Guatemalan, I agree. Remittances coming from the US to Guatemala from Guatemalans working abroad make up more than half of our economy. It’s a very interesting phenomenon and should be worth more attention.
As a global software and tech veteran living in Guadalajara, your views on this topic are dated by 5+ years. Site selection leans towards MX very heavily. Just the number of Chinese manufacturing entities diversifying there undermines your theses.
I have never really though about Mexico as the next China. But I had indeed think about Mexico´s future as something similar to Japan. I mean, the demographic conditions are much much closer, with both countries having almost the same population, and I think that Japan´s focus on developing technology as opposed to just manufacturing it was the key for its success, and something that Mexico could replicate as well. I am aware a higher degree of industrialization is needed, but I do not think it´s impossible.
Mexico's population is 126.7 million, which is about 1/8th that of China. There are producing and have favored or expedited customs agreements to export to the U.S.. They have high oil production.There are arid desert conditions to the west and interior and, on the Gulf side, hot, humid, and swamping thunderstorms. They are prone to earthquakes in Mexico City. Nothing is easy.
@zerzzoq7455 The gen z of mexico are actually not having as many kids. Look at the stats. They are going down not up. Mexico is accepting in the caravans so maybe thats how their number increased.
The problem isn't the murders, it's organized crime's links with the government and the police. Mexico's problem, like the rest of latino America, is their broken institutions.
@@_ata_3 no ... cities like DF and much of the country are safe. Unsafe areas are most notably on the borders, in rural Michoacan, and in northern rural states like Sinaloa. Cartel violence happens outside of those areas, but since they're farther from production areas and smuggling routes people are much less likely to get caught up in it in those areas.
It’s very hard for any countries to quickly replace China. They don’t just manufacture; most of the time they own the supply chain and the technology. To put it simple, for example making a T-Shirt. They grow the cotton, process the cotton into fabric, dye the fabric, cutting, and putting it into a T-shirt. They also make the machines to do those tasks. This makes them very competitive in terms of cost control. When you see clothes that are made in Vietnam, 80% of the time the Vietnam company is just putting the clothes together, all the fabrics and raw materials are still from China. They just own the supply chain many industries. Given how authoritarian their government is at pointing fingers for people to follow. It still took them years to achieve this. Having India or Mexico to replace China in the short future is very unlikely.
It would be wrong to expect a country to replace China, even in one industry, quickly. But that's not what's needed. And labor costs in China are driving Chinese companies to more overseas, so having control of the supply and manufacturing chain isn't everything. I see China in a precarious place economically right now, for various reasons. The next Global Recession is going to hurt them a lot and cause that house of cards municipal bond market to crash. Moving 5-10% of manufacturing away from China in the next decade will be enough to their economic hold.
@@recoil53 I think low-end product manufacturing will eventually move out of China for sure. I have a translation company, and one of my clients is a Chinese agency, where sometimes I get a chance to read some insider information from China. Their economy is very efficient. CCP provides a direction, and the whole economy is following. It's almost like a cult, as every company's meeting minutes, business report...etc are talking about how to respond to the government calls. Two things that they are focusing on: 1. Reduce reliance on imports of technologies. 2. Get rid of low-end product manufacturing and transform to high-end technology with less labor & higher margins (EV batteries, mobile phones...etc) to cope with the demographic loss in the future. You can start to see how they dominated mobile phone sales in developing countries, Huwai starts to collect royalty fees for 5G technologies. I think the US goal to have G7 countries decouple or derisk from China is very unrealistic, and letting China's economy collapse is like a double suicide. If China is having an economic collapse, the US and Europe will be the first to save them. Just like how China purchased a lot of US debt in 2008 to help finance its biggest customer - the US. Like, at the peak (2021), Volkswagen, BMW, and Mercedes Benz, the Chinese market accounted for 50%, 40%, and 37% of their total revenue. It will be insane for Germany to think about not helping China if anything happens to their economy.
You can look at the catalog of China’s export commodities in the past two years. The proportion of labor-intensive products such as clothing, shoes, hats and toys is already very low.
Labor costs aren't expensive in china, but they sure aren't cheap anymore either. Countries just can't compete w/ China's speed to market. Many corporations are trying to lower their labor costs, and it becomes a logistical nightmare. Mexico has international companies setting up shop, but they really don't take what they learn to make their own stuff and/or start their own multinationals. There are some niches that mexico can explore w/ govt investment where their labor costs, proximity to the US, and technical know how would be a benefit like appliances, heavy machinery, construction and farm equipment. It takes massive govt support to get through the initial growing pains but a lot of time things get better. Korea did this, their electronics and cars were disposable junk in the 80s and much of the 90s but they kept plugging away.
@@KBellate De-risking won't cause economic collapse in China, but it will provide more options so if there is conflict the G7 aren't cut off from manufacturers. But while you are impressed by the speed and focus of how China pivots, you do not see the inefficiencies cause by this. For instance Xi set GDP targets for provinces, but not guidelines nor does he account for economy & debt. So they take out loans and hurry to build things that add to GDP on paper, but aren't necessarily useful to building long term economies. And they have done this every year, putting out municipal bonds with ever increasing interest for new projects and to pay for old bonds. That house of cards will come crashing down. Xi also caused great unemployment & underemployment by his sudden pivot away from software. Guess what? Programmers aren't good for much else and those degrees were not state financed. They cannot help create new hardware technologies. What he doesn't have are engineers. Young people feeling hopeless is a recipe for societal unrest. There is 20% unemployment for those 16-25 and 45% underemployment for 26-30. They have degrees that are not in demand and probably feel betrayed. Xi also wants to pivot to a consumer economy, but guess what? The population is exhausted and can't afford to. They can't even buy a home, much less one with a quality build. The proof of exhaustion is the 'laying flat' meme. They know the are in a late state capitalist society and are passive resisting. The next global recession is big trouble for China and the top down decrees have added to the disaster it will be.
I’d love to see a video where the illicit industries of Mexico (but does not have to be limited to Mexico, as illicit industries are everywhere) factor into the national GDP, and/or how they play a role in economies at large.
In many ways China was the biggest beneficiary of the original NAFTA. The agreement was signed in 1994. It was motivated mostly by a desire in the US to keep Mexicans home instead of being flooded with illegal immigrants. Some people warned that it would lead to de-industrialization in the US. It did. The trend started in the early 90s but really accelerated when China joined the WTO in the early 2000s.
"It was motivated mostly by a desire in the US to keep Mexicans home instead of being flooded with illegal immigrants"... are you that stupid & naive? U.S. never had a serious immigration problem until NAFTA.. .why? cause GREEDY U.S. Companies wanted cheap labor & sell their products in the U.S. for sick prices. Another Example. Walmart opens a store in Mexico, now road side fruit vendors are out of a job, guess why? and guess where they go?
My brother researched purchasing property in Mexico for a specialized resort, in the 1990's. Hopefully things have improved, but property ownership seemed a little less than secure and bribes were going to be part of the business plan.
I'm Mexican and about 2 days ago I heard a real life horror story on property and bribes. Two acquaintances of mine, owned a bar close to a stadium home to a pro soccer team, they were trying to renovate their license because since it was expired, they had to bribe the official monthly to keep running their business, they believed once they had their license up to date this would end. Long story short the red tape was so bad and the bribes so common that they just gave up and closed the business. They could have kept it but decided it was better to not give in to corruption. A sad thing
The whole point of this video is comparing Mexico to China and seeing what it would take Mexico to become the next economic miracle given what worked in China. It's absolutely worth comparing.
@@bwofficial1776 I understand your sentiment. I like to see success measured by how much we're able to pull ourselves up by the bootstraps. IMO it is better to measure growth and celebrate the increments along the way. To compare to China's interstellar growth, is to set ourselves with false hope. Lastly, Mexico is not ready to enter the room China has dominated. Not yet.
As a Mexican... Is true... China government invested heavily into making china as japan. China invested to make good public education in all levels which is a big no no in Mexico. China descentralize credit allocation which in mexico is a big no no. China received fo free all heavy industries by Japan which mexico never received. China invests heavily in planned infrastructure: trains, subway, japanese style spontaneous urbanization. China doesnt suffer of killings and from where i am which is not a big city in Mexico killings are normal of innocent and criminals. China gets alot in debt which in Mexico is a big no no.
BUT SIR MY INDIA IS THE REAL SUPERPOWER NUMBER ONE🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN MEXICO PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
The biggest problem of Mexico (and Central America) is its corruption due to drug cartels. Do not get me wrong:we Italians and other Europeans (Ukrainians, Russians...) suffer from the same problem, but Mexico is on a whole other level. Being it solved, it might become a great power. Love Mexico 🇲🇽 from the EU 🇪🇺
@@ThePathbauer the cartels were the final blow, which now hunts the Country. You can't deny it. Of course cartels are only part of the corruption problem, anyway I've just read today a reporter had been murdered due to this "problem". I think it's not normal. It is like the 90's Italy
You people drop terms to countries just to keep your understanding simplistic, Russia? Oligarchs, literally any latin country? Corruption. But when its the US its suddenly “complex” and requires more nuance. All of you suck.
Was expecting to hear that Mexico is hopeless, but honestly the video seems to have a relatively positive outlook? There are challenges for sure, so those need to get sorted out. Can't have narco violence be the main topic when discussing the country.
@@mrspeigle1Kind of an understatement. There is no judicial process in El Salvador. You can be picked up and arrested for having tattoos or upon mere suspicion of being affiliated with gangs. The fan girling for this system is so funny to me. It's only because of a massive turn to authoritarianism.
Excellent video, I am Mexican and I am happy to see such an objective review in our country, I think most of the time we are overshadowed by our neighbor lol - I think that if our people can take a bit more political accountability and elect officials that will push change, slowly but surely the lives of our children and their children should live in a country where we can enjoy safety and the prospect of a better future than previous generations. Thanks for the video and keep up the great work!
@walterpalmer6312 in our country whites are extremely privileged and are treated better than us, they live in a bubble of safety and are extremely conservative.
"oh no. If only the people here were individually smarter and voted correctly then the right people would be in power and good things would happen." Try better bro.
@@ericktellez7632exactly. Lol the immediate defense of "what does his race have to do with it?" In the context of geopolitics when it's expressing the views they do... It means A LOT!
you can also mention the size of the FDI local market because when a company invests in another country they also calculate the size of the local market where Mexico falls behind compared to China, Indonesia, India, etc.
you simply create the market. is not that hard. Create the necessity give the adquisitive power to people to have "enough" to spend in and be consumers. That means enlarging the medium class, which the current goverment doesnt want to do because well, they profit from the poor.
Hey EE love the videos, including the long running series on individual countries that ends by ranking them. Yet perhaps their could be a start to a new series for variety? Others might have better ideas but maybe some videos on global economic trends and their meanings like globalization and the inverse as an example, or the results of stimulus vs austerity, or out there ideas like a world with private currencies and the ways we might already have some of that in credit markets. There are probably a ton of economic based ideas that would make good videos. Y'all are doing great, and could still do even better. Best wishes
Thailand also have same problem as mexico, some chinese factory tried to avoid US's tarriff. So, they just rent a warehouse and slap made in thailand stickers on solarpanels, cars, harddrives or just do some minor assembly.
You’re right. Alots Chinese medium to big size company, rent warehouse in around SOUTH ASIA & SOUTHEAST ASIA to avoid US tariffs taxes. I don’t say it right, but at least if your country is smart enough, you can “squeeze” benefit from it. They must hire local chef director, employees & also pay taxes for your country. Rather have nothing. This is bussiness & tricky. While not used this solution to take benefits. Look at others bright side. All dirt & hardworking, pollution stay in China. They’re finish raw materials or products already. To avoid US TARGET TARIFFS TAXES THEYRE BRING TO THAILAND, MALAY,etc.. so your country not take any pollution but still can have “some benefits” on its. Sometime we should see it from another side & good side. Because this trend is happen. Your country not accept then another country will do. IT HOW MONEY WORK & HOW MONEYS RUNNING!!
China had become too advanced and powerful. Not even the US can compete with it nevertheless mexico. It's more comparable with Taiwan but pushed way back by the US oppression and control. It will take time to develop Hopefully it would one day
I really enjoy your channel would it be possible if you had an email distributor list with links to your new videos with your sources cited? I enjoy videos but sometimes I want to dig a little dealer into the topic on one or two points. Thank you for being a great content creator team! Also, please keep looking at developing nations
BUT SIR MY INDIA IS THE REAL SUPERPOWER NUMBER ONE🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN MEXICO PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
GPD-PPP per capita For the 25 most populous nations in the world (this is GDP adjusted for costs locally): $78,000 United States $65,000 Germany $57,000 France $55,000 United Kingdom $53,000 Italy $50,000 Japan $40,000 Turkey $34,000 Russia $23,000 Mexico $22,000 Thailand $22,000 China $19,000 Iran $18,000 Brazil $16,000 Egypt $16,000 South Africa $15,000 Indonesia $14,000 Vietnam $11,000 Philippines $ 9,000 India $ 8,000 Bangladesh $ 7,000 Pakistan $ 6,000 Nigeria $ 4,000 Ethiopia $ 3,000 Tanzania $ 1,000 DR Congo I think this is the economic scoreboard that actually matters. Mexico is not doing that bad on a global scale. It's #9 out of 25. Now this method has some limitations. Everybody is grading themselves. And calculating GDP-PPP is quite complicated. Therefore it would be easy to bias this if one was trying to or to mislead oneself even unintentionally. But the basic picture seems to be accurate.
I've seen in some other videos on Mexico that it has quite a bit in common with...Afghanistan. Obviously Mexico isn't nearly as dirt-poor, isn't nearly as completely controlled by radicals intent on stifling freedom, isn't nearly as war-torn, and isn't landlocked. However, both Mexico and Afghanistan are comprised mainly of mountains and plateaus in which warlord-type people and gangs can hide easily - hence, Mexico's drug trafficking cartels, the accompanying crime, and so forth.
My country Mexico had failed many times, the last time was the Mexican peso crisis in 1994. We had failed many times in part because of bad leaders but it's also due to Mexico isn't an easy country and it's worse when you have a difficult country (geography and insecurity) and you aren't the one with the most money. Yes we have a lot of resources but we also have a lot of desert, mountains and jungle and to get resources in this kind of places isn't cheap. We have a lot of ilegal organizations highly organized and with a lot of resources, so to eliminate them without setting the whole country a blaze and without the proper resources would be impossible. I think most of my people don't care to be the next China, we don't have the population, we don't have their history and ethics (Thank god) and we believe in democracy and free expression. We only want the confidence of our neighbors, allies and investors so we can become a peaceful and developed country side by side with our North American neighbors the US and Canada. Right now we are a very stable country and with the help of our hard work, our allies, investors and god I know a dream of a peaceful and developed Mexico can become true, side by side with our North American friends.
I don’t think it is impossible to get the cartels under control. AMLO would simply have to ask the United States to step in and help. America would be willing to lend its military. But Mexico isn’t willing to suffer the pain that would be required.
@@AerysBatjajaja that won't work. Too many issues. That type of organizations can only be eliminated improving the quality of life of the population not only by military force.
@@AerysBatHah. Yeah we'll fix Mexico's inequality by going there and killing people, sticking a gun in their face. They'd be better off if we just classically imperialized them and claimed them in the name of the US than any kind of Afghanistan 2.0 hairbrained nonsense.
@@carloslomas7568 What about El Salvador? I’m not saying their strategy is healthy but they didn’t wait for their economy to improve before saying enough is enough. Sitting around waiting for some economic miracle to solve your problems will cost Mexico another decade of stagnation. And Mexico’s refusal to partner with the US and ask for help is nothing but the sin of pride.
A single Chinese province, Guangdong produces nearly half of China’s exports. Mexico has a similar population to Guangdong, so there really is no reason why they cannot export a lot more than they do currently.
@@xplorethings well I agree with Your statement. However his statements about the USA seem solid as a rock, and Mexico is a satellite. So the case of NAFTA on steroids is coming decades is rather sound to my easr
You got all this wrong, the mexican economy is booming like crazy. The Isthmu of Tehuantepec is the connection of the gulf of Mexico with the other side of mexico and the government is Investing heavy in that area. Thousands of companies are flooding that area. Thousands of Americans are moving to Mexico. The Tren Maya is going to blow up even more the Mexican Carrebean tourism. The peso is getting stronger every day.
The main issue here is the ineffectiveness of the Mexican State. It cannot enforce law, policy or even bearly controls its own territory. Less, it cannot provide services such as education, which is key to move from cheap manufacturing to a more advanced industry. Elite's interests are misaligned, which makes it harder to achieve long-term goals or even set them up. Not like China, which planned every step of the process to absorb the know-how of foreign companies investing in the country and push their own companies, subside factories' input and set up global production chains, even cornering some strategic natural resources. Mexican State doesn't have that capability.
Our current economy is not that fascinating I believe, but EE could talk about how our economy changed and grown since the days of PRL. That'd be very interesting!
@@urbanistgod Every eastern european country is saying that they're the fastest growing... In growth there are peaks and lows, so all of them can point to a specific spot where they were the highest, but statistically, most of eastern european countries have very similar growth rates.
The only country that can come as close is INDIA itself,no other country can come close to China. INDIA is working very hard to resettle these companies from China to India and it's already working for them.also Vietnam is doing pretty well too
India is having limited manufacturing succes so far and it's to little to late. Yes you might hear and read lots of lofty articles but the results on the ground doesn't reflect that
@@blokin5039possibly, but I think it might be the case where there’s exponential growth - it might be a little slow now, but as the red tape, infrastructure, logistics etc. keeps improving it’ll start increasing.
@@ABBZ120 India has many structural problems and their manufacturing sector won't grow nearly fast enough to employ their huge and growing unemployed population. Remember they also have to share what's on offer with countries like Vietnam, Mexico and the likes.
@@blokin5039 very true, there are currently many inefficiencies - however I’m reading of many projects and initiatives in the pipeline to come and many that are already here that seem to go completely under the radar, that is probably why I’m more optimistic that it will improve. They foundations are being laid and it seems to be getting better.
@@ABBZ120 I've been reading Indian media for the past two years and while there are many construction projects going most of them face heavy delays and budget overruns. Lot's of talk about Apple moving there but one of their subcontractors Winstron recently shut their factory and I suggest you read about their reasoning for yourself. It's also not really a unified and stable country so I'm sceptical about India untill they prove me otherwise.
I’ve had Mexican bosses and Mexican employees in Mexico at various manufacturing facilities. The problem with Mexico is a cultural one. It remains a very class conscious society. As my boss once noted, ‘that guy (a senior exec) will never talk to (a smart first level manager) because he’s not in his circle.” Mexico WILL have a reasonable future, but never to the potential. The will to solve the large drug crime syndicate problem simply does not exist. As for immigration, the flow of Mexicans to the US is WAY LESS than in the past. Jobs are now available in Mexico, and many dual citizen Mexican-Americans retire in their former home towns. As for the investment theory presented for FDI, let’s be real. ANY company invests in ANY location to make money. My experience of corporate life is that the C-suite is just as happy closing or expanding a facility in Ohio as it it in Juarez. The spreadsheet results are what drives the decision.
@@ericktellez7632 I’ve seen nepotism out of your people so many times every company with a Hispanic hiring manager, and up becoming an extended family in my experience. Not much you can really change that.
@@rudysmith1552 Bush Sr, Bush Jr, Floridian Bush Jeb something I think, JFK jr and his brother, you have an entire party trying to get rid of the estate tax to allow rich millionaires to pass their wealth to their kids once the parents die with out any tax. You are projecting your failings to other people.
Sincerely, I dislike the idea of questioning which country will or will not become the next china. I find the question of ‘how a country X can maximize its potential’ or ‘what it takes for a country x to maximize prosperity for its citizens’ way more interesting! Specially if you put the current workforce decline into the equation. ‘Is it possible for a poor country with an aging population to prosper?’ NOW THAT is a fascinating question!
UA-cam channels live on clickbait and China is the #1 topic in the US 15 years running. If you don't somehow namedrop China into the title your video will get far less view and also won't show up when people searches for China related topics.
This video isn't really about Mexico's potential to be good for it's own citizens, it's analying its potential to be used as a weapon against the Chinese economy. That is all Americans care about.
Two things to consider: 1.- Population 2.- Government In Mexico , the government is controlled by the US, they attend the best universities in the US, Carlos Salinas gortari got a master’s degree at Harvard!!! China has managed alone, government implementing policies to strengthen their education and economy, helping the individuals who wanted to create their business with military intelligence, an example is Huawei, created using the government intelligence and money, Mexico won't do that because it is limited, and if it wasnt the case, they seem to have no desire to. 127 million in Mexico, 1billion in China.
Although there is not a single lie here, this video was surprisingly simplistic and with some negative bias. Kazakhstan video was way more optimistic lol. Being that said, I don't people really think Mexico would become the 2nd largest economy, but the current scenario could help the country to reduce poverty and helped industrialize underdeveloped regions.
I love your videos and I AM from Mexico. So I will answer this in once reply before watching the video 😅 corruption and safety. It is so unsafe inside Mexico you have NO idea. Small businesses getting extorted, is just not a good place to start a business rn.
Kijas we are not talking about small business here. We are talking about the big money, besides, Mexico is inundated with small business….. Are you kidding me allowed me to laugh so hard jajajaja right now Mexico has broken all the records of foreign investments mexico has a line of country waiting to be allowed to do business with mexico. Corruption and violence will go away once the big bucks start to, rolling in
The problem with Mexico mainly is that China plans its economy while Mexico doesn’t do any type of planning, Mexico drank three neoliberal kool-aid, China didn’t, also for some in the Mexican elites and politics having National technology and or multinational development with government support is seen as negative, again the neoliberal mantras that suggest them not to have or create national industries but conform with foreign ones exclusively. Corruption is high and scandalous as well, the politician class has zero political will to end it. Most of economic experts conform with old economic mantras of the 1980s similar to those of the old socialists of the 20th century. Mexico exclusively wants to compete for low wages and anchored salaries to the bottom for almost half a century, many Mexican companies fail and refuse to innovate and protest anytime salaries get increased, especially with AMLO, however this has not caused inflation and recovered purchase power, thus contributing to the general productivity of the market, however the Mexican elites are not able to see that and prefer wage slaves who barely buy anything instead of innovation and actual consumers. Most in the Mexican elites are inept unlike American and Chinese ones. The Mexican and Latin American elites are short sighted.
Another "hold-on, not so fast" point to the whole "Mexico will be the new China" ideia is the long historic of Latin America being ... Latin America. With some respectable exceptions, the cycle of showing promises to improve, having great/unique opportunities at hand and wasting it all - what we call "chicken flights" in Brazil - is a strong reason to be skeptical.
It is not LatAm bring LatAm it’s literally the US meddling and couping countries and sanctioning them when they begin to affect the interests of US corporations in their countries. You need to keep the boot out of your mind and realize it isn’t “corruption” like what these white Americans keep yelling, it’s literally their government meddling in the region time after time.
It's never going to change until we become strong enough to resist foreign intervention, since the sepoys always end up selling off everything we have built during the boom in exchange for pennies and a few "atta boys." The new owners either kill our industries in the cradle,before they can compete, or just turn them into rent operations.
They're cashing in because they face a permanent stall from self-made aging, debt, and pollution. Unfortunately Mainland China still remains far short of the value-added they need to offer to not get replaced by global competition.
No country will ever come close to being the next China..not Mexico, India, Indonesia or Timbuktu because you need strong INSTITUTIONS, INSTITUTIONS and more INSTRUCTIONS to inforce the rule of the law which majority of the world's government lack... selfishness, greed & human corruptions is what's holding us back...
I don't think Mexico has to become the next China. Its population is only 10% of what China's is. If Mexico can claw off a bit of China's current exports, it can have a huge effect on its population (assuming it gets distributed in a way that is at least not obscene.)
Also: New Zealand now has prohibited foreign people to buy homes in NZ unless permanent residents :D just saying haha. But its a good example 8:40 Mostly due to a specific country buying lots of property and lifting the prices beyond what locals could afford
@@luisrb7348 from what I hear, Vancouver had the same problem as Auckland with Chinese “investors” buying houses and some never even occupying them. This made a bubble that locals just couldn’t participate in.
I am a plumber with my own business . Many things that I installed are already being made in Mexico . All the toilets that install are all made in Mexico . All the water heaters are mostly all made in Mexico . The tools used to be all made in China . Now all of Deaaltbis made in USA and Mexico . I’m not buying Chinese made stuff . I will prefer to buy made in this continent or European
I think you should take another look at Brazil. In the last few years it has gone through profound modernization on its institutions and has solved pretty much every structural issue on its economy, as more recently it passed a major tax reform debureaucratizing the system. Many other reforms with same purpose was passed, the pension reform, labour reform and several other regulations made to bring more safety for investors. I think Brazil it's really set for a huge productivity growth in the next decades because of that. Its economy already proved itself very resilient having a lower inflation rate than the US's. Higher economic growth than most countries and lowering its unemployment, recently reaching an almost 10 years record low. It would be a great analysis on how the implementation of orthodox economic policies better a country
Brazil is a great country with great people. However, it will never each even 50% of its potential. The political culture is beyond toxic and the popular leftists are going to completely retard the economy over the next few years.
@@ericktellez7632 he does have some bias but that what i told is not at all a product of Lula's government. It became a common knowledge among politicians that the country must be modernized
@@MrVitorao Lula and Dilma’s governments where both industrializing Brazil they are the reason the Brazilian economy managed to sustain the massive hit given by Bolsonaro who tried to handle the industry to the US and Europeans sending its gdp back to levels from a decade ago. Now it’s making progress once again under Lula.
One thing that bugs me when people say Mexico's growth is not as high as some other developing nations is that Mexico industrialized a long time ago. Mexico has been independent for nearly 200 years, and it's industrialization began after the Mexican revolution in the early 20th century. NAFTA took advantage of a small but already established industrial base. Some developing counties only recently decolonized. Therefore their industrial base is fairly new. Of course they have high growth compared to zero growth they had prior to their independence. The U.S benefits a lot from their relationship with Mexico. If they could easily decouple their economy from Mexico, they would have done so under Trump. They basically just renamed NAFTA and made some Tweeks to it. Mexico would suffer more, but it would also hurt the U.S economy hard. Why even bother going there?
Corruption, white supremacist and neocolonial ideology and mentality still prevalent in its institutions, politicians who get financed by US and West to undermine as a result of this ideology, religiosity has kept masses in ignorance, cartel deep state, and church's control of society are the main reasons why.
im in mexico for a year... in mexico city. it's a pretty wonderful city. I highly recommend it. That said, there are many negatives of life here. It is not perfect but the people of Mexico are mentally strong.
No mention of demographic data at all or did I miss it? Seems like a key data point to consider when comparing two nations' potential future roles in the world production chain and economic theatre.
As Mexican, I will be careful of the high crime rate. I've never been robbed and the last time I heard of a crime in my neighborhood was several years ago... but I'll be extra careful. Thanks for notifying.
Ya I am sick of hearing that, people don’t realise how hard it is to become the next China when you have to compete against actual china which has had year to build out its infrastructure and develop it labour skills.
@@jimpaddy79 Not to mention developing its stealing, ahem, industrial espionage skills. China is also incredibly corrupt, pay off the right bureaucrat and you can do anything.
Yeah it is constant exaggeration. Plenty of countries will become much more important in the world economy and in tech development, but they will never reach the magnitude China did at their height
NOT TO MENTION, the train system being complete in the Southern portion end of 2023 that will also act as a transportation route. Currently almost finish route is from the state of CHIAPAS down to the end of Mexico, with 3 other train projects coming after in this rest of country for Mexico to have a fully modern day bullet system train in Country - Not even Usa or Canada.
4:13 with not accurate data.... Imports from Mexico: 455bn Imports from China: 536bn real info way different than mentioned....at least as stated in official US govt site, Mexico has been many years (on and off) the first partner of US along with china and canada
China has the same economic size as the Economy of the European Union. When you say that Mexico, India or Vietnam are the next China, it is equivalent to saying that they are the next EU. You underestimate China too much, deliberately lowering it to the level of Mexico or Vietnam.which is really ridiculous.
Chinese economy has it's fair share of problems India going to become third largest in some years India due to multiparty democracy only go for gradual reform unlike China with one party India is society driven country where society triumph state many times unlike China is State driven country Both have advantage & disadvantage
Remember his video months ago questioning China's GDP? Quite a few academics in the West hope China's reemergence is fake so they product "studies" to support their conclusion. Somehow an economic professor in Chicago can with satellite images tell China's "real economy" better than Ford Motor's China VP with his company's actual sales data. If China's GDP is fake I wonder who is buying up all those western goods,... unless those MNC are lying as well and this is all a conspiracy to fool the economists🤣
@@amitkumarsingh1709 Did you watch that Kraut video? I wouldn't really put to much weight on it, all those channels are propaganda. If it's true though, then India is in deep trouble since it means the ROI is the child of the colonial society of 1940s India and it needs to fall and be replaced by a regime more intune with modern Indian society.
I would love to see Mexico replace as much manufacturing as possible. The U.S. integrating with it's neighbor's for its security is a much better idea, and diversifying the manufacturing over south, southeast asia, and the americas seems like a good idea.
I was doing an electric service in a computer assembly in Chicago suburban,, it surprised me how much Mexican people are involved in the technology world,,,,,, that made me so happy,,, Vamos mexicanos!!!!
The first 1,000 people to use the link will get a 1 month free trial of Skillshare skl.sh/economicsexplained07231
loving it.
Make more videos about the benefits of shrinking cities and the replacement of apartments for single family homes.
So while it prob won't replace China globally, it prob will bite out a considerable chunk of their market share.
you are just supporting ccp
Paid for Chicom shill. Allegedly this channel is funded by the CCP.
Mexico has great potential. It could never replace China but it definitely could become a significant regional manufacturing hub for the Americas. Remember, China too faced issues related to corruption and crime before it modernized. The future for Mexico is bright.
China has a huge corruption problem. The differnce is that its an authoritharian regime
@@SigFigNewtonstop being toxic on the net bro
@@nobitatabino5959 he isn't being toxic. u r just being hormonal sir.
The fact is that mexico is providing manufacturing, and cheaplabor,without the enfringment of inspectors that protect the environment, and is a lot closer than china,mexico can never compete with a communist superpower like that,and due to the coruption, organize crime,the total coruption of the Mexican government, is gonna keep mexico from been a first world country!..ashame cause millions of people that died in the revolution and been robbed of almost half it's territory,,mexico deserves to be better!
How is this different from what already has been? México in the last 20 years at least is a regional manufacturing hub for the United States. Has this brought better living conditions? No
I feel like comparing Mexico and China and the roles they will play in the future global economy without even mentioning the current and forecasted demographics of the two is a huge oversight.
The entire video is an oversight the guy clearly doesn’t like that there is a popular leftist government in power that is nationalizing private sectors owned by america in Mexico
Stop comparing to China, the economic miracle of our lifetime. It is better to focus on ourselves way of progress.
@@kabysummit5801lol, China bot detected.
@@hydraz2I just don’t think demographic information is relevant to a nations future production statistics. The current demographic data can’t control for immigration waves and innovations in automation. We might very soon be living in a world where only a single person is operating an entire fast food joint, remotely.
One Chinese person has the output of 5 Mexicans.
As an American who spent much of my working life in Texas, I can certainly attest to the brain drain of the best and brightest of Mexican universities.
Your not an American your some economic migrant cheerleading your new host.
Oh i thought Mexicans were animals according to a certain us president....
Lots of Mexican engineers in Texas. They got some good schools in Mexico and then businesses in Texas poach them and bring them over.
@@squishyfaceguyexicans engineers don't go to USA 😂 mxcn engineers are going to west and east Europe. You probably got a venezuelan engineer and confused him for a mxcn 😂😂
@@robmartin5448what is your source
Last year Mexico surpassed Spain, this year surpassed Australia, and in 2045 will be undoubtedly the 6th largest economy of the planet. Even with corruption and even with the safety issues this is taking place… just imagine if they manage to get rid of that.
Mexican president is currently demolishing cartels left and right. Western media won't say it though
They would be like Canada and US
Well the 🇺🇸 “KEEPS ALLOWING THERE WEAPONS” to go south of the border keeping Mexico more dangerous than it would be. Also the demand in the IS is to big for the cartels to stop.
Yes in economic figures they've surpassed Spain but the Spanish living standards and safety is far ahead of Mexico's,😴
I think a bill was signed in the US to get rid of the cartels. I think it's called the Narcos act.
They won't be the next China, but can be a vital manufacturing base.
A "next China" probably isn't ideal either, as the efficiency of a single source also means the efficiency of a single shock leaving you stranded. Hence the "derisking" divestment and diversification from China and Russia before another Dynamic Zero-COVID or Special Military Operation breaks out.
@@doujinflipYes. Therefore equality and cooperation is the answer. The US and China want to tackle this derisking thing by building up their own economies at the expense of others because they have a lot of imperialistic leaders. It's not possible to thrive as an island and being an island is risky.
@@doujinflip I find it kinda funny seeing non-American westerners celebrating Mexico as the 'next China'. For two reasons - 1) Mexico is only partially displacing China for ONE western nation, the US. It barely makes a dent into Europe's reliance on China, so it's laughable to see them hailing it as a savior. 2) Quite a bit of that foreign investment into Mexico is actually FROM CHINA, for the same reason everyone else is investing into Mexico. And hence the profits from those investments go to China.
Yup manufacturing underwears 🤣👍
@@RealCherry8085 Asians cope so hard on the English speaking web
I think the painful lesson Covid and Ukraine taught large companies and governments is the importance of having a domestic supply of EVERYTHING when possible and if you're importing don't put your manufacturing eggs in one basket. There will never be another China, it's too risky.
it was always too risky and i have been making that argument for over a decade in the field. no one wanted to listen because profit trumps security.
i suspect that the buisness world will be a bit shy about risk for say 3-5 years but that already some companies are taking more risks to profit while others don't if even a small number of them see massive growth or profit everyone will want to be the next one. thats how just in time production got started in the first place. nevermind less risky practices that got scuttled by the pandemic.
I don't think there will be another china. I think there will be MANY other china's.
Better tell this to the current US government because they aren’t doing anything to help domestic production of anything.
@@scorpioneldaryeah, the banks learned absolutely nothing about the 2008 crash
well, some Large Corp CEO, from Car companies to Chip companies, openly said they actually like the shortage, which cause them to making record profit by jacking up price.
The lesson will be learned short-term, then forgotten because it is cheaper to put all your eggs in one basket than buy multiple baskets (until the next time you drop all your eggs, but who's gonna do that?!)
I loved your video. Most videos are just about what Mexico can do for developed countries. In your video you also analyze what all this means for the citizens of Mexico.
I live in Mexico, right in the border from San Diego and I can confidently say that our biggest problem is the constant crime activity; specially in my city. I seriously hear about one or two incidents every single day that happen in my neighborhood… Can you imagine how many incidents happen in the whole city? It’s sad and frustrating because you can’t even trust the government nor the police/army.
Bueno, Baja California es hoy por hoy el estado más violento del México, eso no ayuda.
Tijuana ❤ it's beautiful but it's scary. I live in US on the other side of the border I know how dangerous it can be.
Viva la HK
San Diego is one of the safest cities in the US
@@jeffeytyvoll8712este compa si sabe
Having lived in the US and now living in Mexico, they have a completely different culture. It’s built upon community, not individualism (although people here are very self expressive). They view family and social connections as more important than career or economic status. In fact, in almost every new conversation with a Mexican person, they rarely ask me what I do for the living, that’s the first question in the US. Mexicans purposely enjoy a slower pace of life, which is refreshing after years of grinding it out on the US hamster wheel. I can’t see Mexico ever having the desire to become the world’s top economy, domination is not in their overall culture (of course except cartels). Other countries could learn from Mexico about being more kind, community oriented, having respect for elders, caring deeply for children and stopping to smell the roses…
hahahaha really?
i live in mexico em thats a lie
"they view family"
no,
What will blow your mind is that Mexico will be one of the strongest economy in the world and they'll still be kind and love family. It is your choice if you want to live the USA style but that has nothing to do with success
This is perhaps true in the particular community that you live in, but when you look at levels of domestic violence, crimes against children, the lack of an even nominally effective or fair judicial system, and the fact that large swaths of the country are controlled and completely governed by criminal cartels, it’s difficult to agree with your comment.
@@riversgato she even doesnt know mexico, i have lived all my life in Mx and this is a sh¨¨¡¡¡ hole
Well, practically the cartel issue is usa fault and of their population so when the usa start doing something to prevent the drug consumers it will end
I would love to see the assessment of Indonesia as well, just like Mexico, it's always been overlooked as a country, both Mexico and Indonesia do have the potential to be much more significant on the world stage.
Mexico hasnt been underlooked, it's rich resources and labor force has been historically looted by Europeans. The french Mexican war that battled for control of mxcn mining industry, us Mexican war where us took 50% of mxcns real estate. British mxcn Mayan war that looted Mexico's Hennepin / rubber tire industry. NAFTA and destabilization of MX peso by US
Mexico joins Brics , no brainier. Indonesia will rise faster than Mexico in 2030 bc it's safe and far away from USA.
Indonesia, at the crossroads?
The were projected to be top 10 economies in the upcoming decades.
But indonesia is a mus1¡m country
Yes, both consistently punch below their weight, we'll see if that changes.
The biggest problem with Mexico and Central/South American countries is that they are held back by people who only have their own self interest at heart. A few bribes and some people get rich while an entire nation's future suffers.
isn't that also the case of China?
China has lots of problems, especially with its housing market scheme. many economists say that Chian will have an economic collapse because if the housing bubble.
and all empires fall eventually.
China won't grow anymore because it has already reached its maximum potential and most tof the country is developed.
China will basically become like Japan. there has been no economic growth in Japan for over 40 years.
Are you talking about US of America?
@@jox_trading4597Hi 🤡
you have just summed up the situation in the global south
@@jox_trading4597 Oh, child... you didn't even hear things in Asia and Africa, did you?
I am not an economist, but I do feel that Mexico is ideally located to be an economic superpower. I hope they establish strong economic relationships in both production and service industry across the globe.
An economic superpower without any known brands? LOL, providing cheap labor to the US will NOT make you a superpower.
mexico has been having this wondeeful potentisl for the last 100'years but too mediocre culture to achieve it
@@ConscienciaSuprahumana que risa jajaja
@@BSPBuilder Bimbo? Cemex? Oxxo? to name a few
@@Kardriel1 How many Global Fortune 500 companies does Mexico have in 2022? China has 145, USA has 124, Japan has 47, Germany has 28, France has 25. Mexico has a loooooog way to go.
Enforcing the rule of law is essential for a country to become a manufacturing hub and sadly Mexico has too much corruption and crime. Say what you will about China but they will come down with an iron fist if they have to, Mexico can't (or won't) do that.
The new government is doing its part they implemented the National Guard. Its is. the Judicial system that its corrupt the Judges that had been put there by former corrupt goverments Norma Piña an enemy of the president has have obstructed reforms like bringing to Justice high officials and even former corrrupt presidents.
The Judicial system its its problem until its gets clean Mexico wont advance much.
Nobody would notice if 50million Chinese people die or off themselves due to their working conditions. Because there are 2 billion of them.
Mexico can be plenty ruthless, main issue is you can't change a culture overnight. It takes time and that's what the manufacturing industry can do for mexico.
Go to rural China, there’s no control.
"Rule of law"? Mexico has more rule of law than the US because of fewer executive orders. I think you mean "law and order".
Mexico is getting 40 Million tourists more than Canada’s population and more than the tourist visiting Chile, Brazil, Colombia Republic Domenican, Argentina combined together
Who cares? They’re not tourists but border jumpers
Who cares? Tourism is the most USELESS sector in the economy of any country. Wages are low and only poor countries rely on that.
Mexico is like a very dry sponge when it comes to capital. It can soak up a lot but it doesn't immediately grab the moisture, because water is sticky and likes to stick to itself. A damp sponge is more ready to absorb moisture. Money and development likes to chase existing development in the same way that water clumps together.
Most of Mexico has been capital starved for a very long time and it takes a good while for the process to start compounding like it should because in many regions there wasn't anything there. Infrastructure is difficult over most of the country and human capital is poorly utilized.
I mean we have Lithium that yall want. I lived in Mexico and I was living fine
@@quigongio5584 Mexico has a high disparity between areas with great infrastructure and standard of living, and areas that don't.
@@joseph1150 and America don't
@@quigongio5584 The poor in the US have material wealth and food security more in line with middle class pretty much anywhere in the world. Including Mexico.
@@joseph1150I'd be inclined to agree, being a local to Latin America.
It's a bit iffy discussing it with Mexicans though. Blind nationalism tends to be both annoying and a great way of missing the point.
Mexico still has a great opportunity to develop. The US is invested in Mexico. A better performing Mexico is better for the US. Immigration would be helped a ton. A market to sell. Safer for tourism. Better ability to fight drugs. A strong Mexico is good for the US. A Weak Mexico is good for China. China can then use it as a proxy if it is weak.
Strong México Is not necessary bad for china
A strong Mexico is good for the US, but a powerful Mexico then becomes a competititor.
They want you to do good, but not better than them.
@@NewAb22 Mexico has democratic values just as the US.
@@MusicShortsGlobal Japan too, but look what US did to them during the 80s when Japan is booming
Immigration would be helped by a strong Mexico? I assume you mean less people would leave Mexico?
Banking of the underbanked in Mexico is very strongly driven by remittances. Senders lost a lot of the money sent via fees from traditional ways of remitting money like Western Union. There was also price fixing and abuse by some of the sender companies when they had more of a monopoly. So some banks, pre paid cards and apps started emerging over time to get remittances to people around the world.
A video on the worldwide phenomenon of remittances could be a good idea.
Mexicans empowered by remittances would never allow themselves to be enslaved by their immediate authorities. Unless remittances are contraband, "poor" working class Mexicans will never accept lower wages than their counterparts in Asia.
Seconded! That would be a great topic.
As a Guatemalan, I agree. Remittances coming from the US to Guatemala from Guatemalans working abroad make up more than half of our economy. It’s a very interesting phenomenon and should be worth more attention.
That would be interesting.
+1 on this idea
As a global software and tech veteran living in Guadalajara, your views on this topic are dated by 5+ years. Site selection leans towards MX very heavily. Just the number of Chinese manufacturing entities diversifying there undermines your theses.
Exactly they see it true there racist eyes. If Mexico works with china it will be a great nation too.
Most ppl still think that China's success is just based on its population. They don't know how safe, organized, and effective China is.
I think China’s efficiency is good, no matter how much the media tells us about how brutal such efficiency is, brutal efficiency is efficiency
Yes like how they handled their internal covid pandemic 🤡
I have never really though about Mexico as the next China. But I had indeed think about Mexico´s future as something similar to Japan. I mean, the demographic conditions are much much closer, with both countries having almost the same population, and I think that Japan´s focus on developing technology as opposed to just manufacturing it was the key for its success, and something that Mexico could replicate as well. I am aware a higher degree of industrialization is needed, but I do not think it´s impossible.
And we have positive birth rates and a young median age compared to Japan.
Japan has low birth rate. They will no longer in the future be able to keep up. There only choice is to create AI robots to replace the lost workers.
Mexico's population is 126.7 million, which is about 1/8th that of China. There are producing and have favored or expedited customs agreements to export to the U.S.. They have high oil production.There are arid desert conditions to the west and interior and, on the Gulf side, hot, humid, and swamping thunderstorms. They are prone to earthquakes in Mexico City. Nothing is easy.
126 10 years ago we are at 130-132 right now
@zerzzoq7455 you mor0n, the Mexico's birth rate is about 1.9 children per woman.
@zerzzoq7455 The gen z of mexico are actually not having as many kids. Look at the stats. They are going down not up.
Mexico is accepting in the caravans so maybe thats how their number increased.
Not to mention adults from age 18. - 40 have very high mortality rates .
Agree.. you can’t become manufacturing hub without people.. labor law and cost is rigid in Mexico .. efficiency another problem..
The reason crime doesn't hurt Mexico as much as it could is because the locations where crime exists tend to be predictable.
The problem isn't the murders, it's organized crime's links with the government and the police. Mexico's problem, like the rest of latino America, is their broken institutions.
Cartels say hi.
Yes it's predictable that it happens everywhere, just in two or three spots in the country where rich people have built their bunkers things are calm.
@@_ata_3 no ... cities like DF and much of the country are safe. Unsafe areas are most notably on the borders, in rural Michoacan, and in northern rural states like Sinaloa. Cartel violence happens outside of those areas, but since they're farther from production areas and smuggling routes people are much less likely to get caught up in it in those areas.
well ... relatively safe ... there's still the risk of crime, but most places are not notably worse than most other parts of the 3rd world
It’s very hard for any countries to quickly replace China. They don’t just manufacture; most of the time they own the supply chain and the technology. To put it simple, for example making a T-Shirt. They grow the cotton, process the cotton into fabric, dye the fabric, cutting, and putting it into a T-shirt. They also make the machines to do those tasks. This makes them very competitive in terms of cost control. When you see clothes that are made in Vietnam, 80% of the time the Vietnam company is just putting the clothes together, all the fabrics and raw materials are still from China. They just own the supply chain many industries. Given how authoritarian their government is at pointing fingers for people to follow. It still took them years to achieve this. Having India or Mexico to replace China in the short future is very unlikely.
It would be wrong to expect a country to replace China, even in one industry, quickly.
But that's not what's needed. And labor costs in China are driving Chinese companies to more overseas, so having control of the supply and manufacturing chain isn't everything.
I see China in a precarious place economically right now, for various reasons. The next Global Recession is going to hurt them a lot and cause that house of cards municipal bond market to crash.
Moving 5-10% of manufacturing away from China in the next decade will be enough to their economic hold.
@@recoil53 I think low-end product manufacturing will eventually move out of China for sure. I have a translation company, and one of my clients is a Chinese agency, where sometimes I get a chance to read some insider information from China.
Their economy is very efficient. CCP provides a direction, and the whole economy is following. It's almost like a cult, as every company's meeting minutes, business report...etc are talking about how to respond to the government calls. Two things that they are focusing on:
1. Reduce reliance on imports of technologies.
2. Get rid of low-end product manufacturing and transform to high-end technology with less labor & higher margins (EV batteries, mobile phones...etc) to cope with the demographic loss in the future. You can start to see how they dominated mobile phone sales in developing countries, Huwai starts to collect royalty fees for 5G technologies.
I think the US goal to have G7 countries decouple or derisk from China is very unrealistic, and letting China's economy collapse is like a double suicide. If China is having an economic collapse, the US and Europe will be the first to save them. Just like how China purchased a lot of US debt in 2008 to help finance its biggest customer - the US. Like, at the peak (2021), Volkswagen, BMW, and Mercedes Benz, the Chinese market accounted for 50%, 40%, and 37% of their total revenue. It will be insane for Germany to think about not helping China if anything happens to their economy.
You can look at the catalog of China’s export commodities in the past two years. The proportion of labor-intensive products such as clothing, shoes, hats and toys is already very low.
Labor costs aren't expensive in china, but they sure aren't cheap anymore either. Countries just can't compete w/ China's speed to market. Many corporations are trying to lower their labor costs, and it becomes a logistical nightmare.
Mexico has international companies setting up shop, but they really don't take what they learn to make their own stuff and/or start their own multinationals.
There are some niches that mexico can explore w/ govt investment where their labor costs, proximity to the US, and technical know how would be a benefit like appliances, heavy machinery, construction and farm equipment. It takes massive govt support to get through the initial growing pains but a lot of time things get better. Korea did this, their electronics and cars were disposable junk in the 80s and much of the 90s but they kept plugging away.
@@KBellate De-risking won't cause economic collapse in China, but it will provide more options so if there is conflict the G7 aren't cut off from manufacturers.
But while you are impressed by the speed and focus of how China pivots, you do not see the inefficiencies cause by this.
For instance Xi set GDP targets for provinces, but not guidelines nor does he account for economy & debt. So they take out loans and hurry to build things that add to GDP on paper, but aren't necessarily useful to building long term economies. And they have done this every year, putting out municipal bonds with ever increasing interest for new projects and to pay for old bonds. That house of cards will come crashing down.
Xi also caused great unemployment & underemployment by his sudden pivot away from software. Guess what? Programmers aren't good for much else and those degrees were not state financed. They cannot help create new hardware technologies. What he doesn't have are engineers. Young people feeling hopeless is a recipe for societal unrest. There is 20% unemployment for those 16-25 and 45% underemployment for 26-30. They have degrees that are not in demand and probably feel betrayed.
Xi also wants to pivot to a consumer economy, but guess what? The population is exhausted and can't afford to. They can't even buy a home, much less one with a quality build. The proof of exhaustion is the 'laying flat' meme. They know the are in a late state capitalist society and are passive resisting.
The next global recession is big trouble for China and the top down decrees have added to the disaster it will be.
Mexican peso is at 16 to 1 usd currently.
After recovering from 25 to 1 usd created by previous leaders
I’d love to see a video where the illicit industries of Mexico (but does not have to be limited to Mexico, as illicit industries are everywhere) factor into the national GDP, and/or how they play a role in economies at large.
Whole economy is built over cartels money.. they own business, land , real state and government..
In many ways China was the biggest beneficiary of the original NAFTA. The agreement was signed in 1994. It was motivated mostly by a desire in the US to keep Mexicans home instead of being flooded with illegal immigrants. Some people warned that it would lead to de-industrialization in the US. It did. The trend started in the early 90s but really accelerated when China joined the WTO in the early 2000s.
Correct.
确实是这样的，自从中国加入wto后，中国在短短的三十多年的时间从一穷二白的农业国家发展为今天的工业强国。经济全球化中，中国是发展最快速的国家。
Mexico actually got the end of the stick. US and Canada benefited greatly. NAFTA ruined Mexico.
"It was motivated mostly by a desire in the US to keep Mexicans home instead of being flooded with illegal immigrants"...
are you that stupid & naive? U.S. never had a serious immigration problem until NAFTA.. .why? cause GREEDY U.S. Companies wanted cheap labor & sell their products in the U.S. for sick prices.
Another Example. Walmart opens a store in Mexico, now road side fruit vendors are out of a job, guess why? and guess where they go?
My brother researched purchasing property in Mexico for a specialized resort, in the 1990's. Hopefully things have improved, but property ownership seemed a little less than secure and bribes were going to be part of the business plan.
I'm Mexican and about 2 days ago I heard a real life horror story on property and bribes. Two acquaintances of mine, owned a bar close to a stadium home to a pro soccer team, they were trying to renovate their license because since it was expired, they had to bribe the official monthly to keep running their business, they believed once they had their license up to date this would end. Long story short the red tape was so bad and the bribes so common that they just gave up and closed the business. They could have kept it but decided it was better to not give in to corruption. A sad thing
@@EarhirX thanks for sharing. It's really too bad. Mexico has so much tourism potential.
@@EarhirX Bribes: a hidden and uncontrollable tax.
Mexico is very diverse. There are areas that are good to purchase property in.
Focus on growth, year over year.
Don't compare to China, the economic miracle of our lifetime.
The whole point of this video is comparing Mexico to China and seeing what it would take Mexico to become the next economic miracle given what worked in China. It's absolutely worth comparing.
@@bwofficial1776
I understand your sentiment. I like to see success measured by how much we're able to pull ourselves up by the bootstraps.
IMO it is better to measure growth and celebrate the increments along the way.
To compare to China's interstellar growth, is to set ourselves with false hope.
Lastly, Mexico is not ready to enter the room China has dominated. Not yet.
there's been a recent shift in this channels annimations and stock footage, and its been for the best. Good job!
As a Mexican... Is true... China government invested heavily into making china as japan. China invested to make good public education in all levels which is a big no no in Mexico. China descentralize credit allocation which in mexico is a big no no. China received fo free all heavy industries by Japan which mexico never received. China invests heavily in planned infrastructure: trains, subway, japanese style spontaneous urbanization. China doesnt suffer of killings and from where i am which is not a big city in Mexico killings are normal of innocent and criminals. China gets alot in debt which in Mexico is a big no no.
It'll be epic when EE finishes the leaderboard with all countries and nation-states.
BUT SIR MY INDIA IS THE REAL SUPERPOWER NUMBER ONE🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN MEXICO PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
@@brayan8346 Someone scam your grandma whitey?
Hhhm if he does one country a week it would take less than 4 years to finish the list.
@@brayan8346 Allow me to demonstrate:
The joke from the indian guy
Your head.
As we can see, his joke went clearly over your head. M
@@brayan8346 Report him, he's a CCP BOT
The biggest problem of Mexico (and Central America) is its corruption due to drug cartels.
Do not get me wrong:we Italians and other Europeans (Ukrainians, Russians...) suffer from the same problem, but Mexico is on a whole other level.
Being it solved, it might become a great power.
Love Mexico 🇲🇽 from the EU 🇪🇺
It sits on the door step of one of the largest drug consuming countries that exist!
México was corrupt way before the cartels. Corruption has been the biggest problem since it's colonization.
@@ThePathbauer the cartels were the final blow, which now hunts the Country. You can't deny it. Of course cartels are only part of the corruption problem, anyway I've just read today a reporter had been murdered due to this "problem". I think it's not normal. It is like the 90's Italy
You people drop terms to countries just to keep your understanding simplistic, Russia? Oligarchs, literally any latin country? Corruption. But when its the US its suddenly “complex” and requires more nuance. All of you suck.
The problem with Mexico is that it's ran by Mexicans
Just a reminder for everyone, do the survey. He's putting out great content, we should be able to spend 5mins of our time to give feedback!
Chinese data is unreliable, hahaha, US UK data is definitely more unreliable!
Certainly Mexico can not replace the manufacture of China completely, but certainly can replace a lot❤
I can't stop hearing your up-speak intonation at the end of each sentence
Was expecting to hear that Mexico is hopeless, but honestly the video seems to have a relatively positive outlook? There are challenges for sure, so those need to get sorted out. Can't have narco violence be the main topic when discussing the country.
Elsalvador showed the way to deal with narcos. Arrest them, jail them, leave them to rot.
The first thing I think of when I hear 'Mexico' is drugs followed closely behind by cartels and illegal immigration.
@@mrspeigle1Kind of an understatement. There is no judicial process in El Salvador. You can be picked up and arrested for having tattoos or upon mere suspicion of being affiliated with gangs. The fan girling for this system is so funny to me. It's only because of a massive turn to authoritarianism.
🙏.
@@mrspeigle1LOL, you can’t compare a small country like El Salvador to o a big one like Mexico
Excellent video, I am Mexican and I am happy to see such an objective review in our country, I think most of the time we are overshadowed by our neighbor lol - I think that if our people can take a bit more political accountability and elect officials that will push change, slowly but surely the lives of our children and their children should live in a country where we can enjoy safety and the prospect of a better future than previous generations. Thanks for the video and keep up the great work!
Notice the guy “tony” white Mexican and is happy with the video, if a conservative like this “likes” te video it tells a lot.
@walterpalmer6312 in our country whites are extremely privileged and are treated better than us, they live in a bubble of safety and are extremely conservative.
"our neighbor" lol. Ok. Way to weirdly frame the situation.
"oh no. If only the people here were individually smarter and voted correctly then the right people would be in power and good things would happen." Try better bro.
@@ericktellez7632exactly. Lol the immediate defense of "what does his race have to do with it?" In the context of geopolitics when it's expressing the views they do... It means A LOT!
you can also mention the size of the FDI local market because when a company invests in another country they also calculate the size of the local market where Mexico falls behind compared to China, Indonesia, India, etc.
you simply create the market. is not that hard. Create the necessity give the adquisitive power to people to have "enough" to spend in and be consumers. That means enlarging the medium class, which the current goverment doesnt want to do because well, they profit from the poor.
Hey EE love the videos, including the long running series on individual countries that ends by ranking them. Yet perhaps their could be a start to a new series for variety? Others might have better ideas but maybe some videos on global economic trends and their meanings like globalization and the inverse as an example, or the results of stimulus vs austerity, or out there ideas like a world with private currencies and the ways we might already have some of that in credit markets. There are probably a ton of economic based ideas that would make good videos. Y'all are doing great, and could still do even better. Best wishes
Huh as a Mexican this helped me learn a lot about my country, thanks for the video
Big improvement from the Finland video, thanks for going back to the “old format.”
I binge watch your vids about the economy’s of countries
Thailand also have same problem as mexico, some chinese factory tried to avoid US's tarriff. So, they just rent a warehouse and slap made in thailand stickers on solarpanels, cars, harddrives or just do some minor assembly.
Source: boothole
@@toy4tao*a factual and valid source
@@toy4tao you really found that so hard to believe?
You’re right. Alots Chinese medium to big size company, rent warehouse in around SOUTH ASIA & SOUTHEAST ASIA to avoid US tariffs taxes.
I don’t say it right, but at least if your country is smart enough, you can “squeeze” benefit from it.
They must hire local chef director, employees & also pay taxes for your country.
Rather have nothing. This is bussiness & tricky.
While not used this solution to take benefits.
Look at others bright side. All dirt & hardworking, pollution stay in China. They’re finish raw materials or products already. To avoid US TARGET TARIFFS TAXES THEYRE BRING TO THAILAND, MALAY,etc.. so your country not take any pollution but still can have “some benefits” on its.
Sometime we should see it from another side & good side.
Because this trend is happen. Your country not accept then another country will do.
IT HOW MONEY WORK & HOW MONEYS RUNNING!!
1000x better on the sfx on the graphs and images. Thank you as always.
China had become too advanced and powerful. Not even the US can compete with it nevertheless mexico. It's more comparable with Taiwan but pushed way back by the US oppression and control. It will take time to develop
Hopefully it would one day
I've heard Mexican manufacturing is actually pretty good from someone that procures large kva transformers which is cool
It is, I work at company in the electrical field and we are always under high quality control scrutiny to keep up with international standards
you know whats even cooler? cocaine.
I really enjoy your channel would it be possible if you had an email distributor list with links to your new videos with your sources cited? I enjoy videos but sometimes I want to dig a little dealer into the topic on one or two points. Thank you for being a great content creator team! Also, please keep looking at developing nations
BUT SIR MY INDIA IS THE REAL SUPERPOWER NUMBER ONE🤗🇮🇳 WE HAVE THE BEST INFRASTRUCTURE AND HIGHSPEED RAIL 🤗🇮🇳 MEANWHILE IN MEXICO PEOPLE STILL RIDE RICKSHAW EVERYWHERE AND THEY ALSO POOR DONT HAVE CAR . THIS WHY IM SO LUCKY LIVE IN SUPER INDIA THE CLEANEST COUNTRY IN THE WORLD 🇮🇳🤗 , WE NEVER SCAM! WE GIVE RESPECT TO ALL WOMEN THEY CAN WALK SAFELY ALONE AT NIGHT AND WE HAVE CLEAN FOOD AND TOILET EVERYWHERE 🇮🇳🤗🚽, I KNOW MANY POOR PEOPLE JEALOUS WITH SUPER RICH INDIA 🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳🤗🇮🇳
@indiasuperclean6969 you guys don’t scam? I get calls from Indian scammers everyday 💀😂😂😂🤡
GPD-PPP per capita
For the 25 most populous nations in the world
(this is GDP adjusted for costs locally):
$78,000 United States
$65,000 Germany
$57,000 France
$55,000 United Kingdom
$53,000 Italy
$50,000 Japan
$40,000 Turkey
$34,000 Russia
$23,000 Mexico
$22,000 Thailand
$22,000 China
$19,000 Iran
$18,000 Brazil
$16,000 Egypt
$16,000 South Africa
$15,000 Indonesia
$14,000 Vietnam
$11,000 Philippines
$ 9,000 India
$ 8,000 Bangladesh
$ 7,000 Pakistan
$ 6,000 Nigeria
$ 4,000 Ethiopia
$ 3,000 Tanzania
$ 1,000 DR Congo
I think this is the economic scoreboard that actually matters. Mexico is not doing that bad on a global scale. It's #9 out of 25.
Now this method has some limitations. Everybody is grading themselves. And calculating GDP-PPP is quite complicated. Therefore it would be easy to bias this if one was trying to or to mislead oneself even unintentionally.
But the basic picture seems to be accurate.
I've seen in some other videos on Mexico that it has quite a bit in common with...Afghanistan. Obviously Mexico isn't nearly as dirt-poor, isn't nearly as completely controlled by radicals intent on stifling freedom, isn't nearly as war-torn, and isn't landlocked. However, both Mexico and Afghanistan are comprised mainly of mountains and plateaus in which warlord-type people and gangs can hide easily - hence, Mexico's drug trafficking cartels, the accompanying crime, and so forth.
My country Mexico had failed many times, the last time was the Mexican peso crisis in 1994. We had failed many times in part because of bad leaders but it's also due to Mexico isn't an easy country and it's worse when you have a difficult country (geography and insecurity) and you aren't the one with the most money. Yes we have a lot of resources but we also have a lot of desert, mountains and jungle and to get resources in this kind of places isn't cheap. We have a lot of ilegal organizations highly organized and with a lot of resources, so to eliminate them without setting the whole country a blaze and without the proper resources would be impossible.
I think most of my people don't care to be the next China, we don't have the population, we don't have their history and ethics (Thank god) and we believe in democracy and free expression. We only want the confidence of our neighbors, allies and investors so we can become a peaceful and developed country side by side with our North American neighbors the US and Canada.
Right now we are a very stable country and with the help of our hard work, our allies, investors and god I know a dream of a peaceful and developed Mexico can become true, side by side with our North American friends.
I don’t think it is impossible to get the cartels under control. AMLO would simply have to ask the United States to step in and help. America would be willing to lend its military. But Mexico isn’t willing to suffer the pain that would be required.
@@AerysBatjajaja that won't work. Too many issues. That type of organizations can only be eliminated improving the quality of life of the population not only by military force.
@@AerysBatHah. Yeah we'll fix Mexico's inequality by going there and killing people, sticking a gun in their face. They'd be better off if we just classically imperialized them and claimed them in the name of the US than any kind of Afghanistan 2.0 hairbrained nonsense.
@@carloslomas7568 What about El Salvador? I’m not saying their strategy is healthy but they didn’t wait for their economy to improve before saying enough is enough. Sitting around waiting for some economic miracle to solve your problems will cost Mexico another decade of stagnation. And Mexico’s refusal to partner with the US and ask for help is nothing but the sin of pride.
Y'all dont realize that some U.S organizations worked with the Cartel 😂 to put it simple they'd will be out of job
A single Chinese province, Guangdong produces nearly half of China’s exports. Mexico has a similar population to Guangdong, so there really is no reason why they cannot export a lot more than they do currently.
It is not quantity of people, it is the quality of the people, and more important is the quality of the government.
so simple minded. its not that simple.
😲😲😲Extremely interesting!
I think you missed the comparison ... China's exports *to the US* (not including to other countries) is about double *all* of Mexico's exports
Gungdong is the home of many overseas Chinese. The Chinese railroad workers in California were mainly from Guangdong.
I prefer Zeihan approach here. Mexicos time is still ahead
zeihan has no clue what he's talking about half the time.. so you have to know which half of the time to listen
@@xplorethings well I agree with Your statement. However his statements about the USA seem solid as a rock, and Mexico is a satellite. So the case of NAFTA on steroids is coming decades is rather sound to my easr
@@xplorethings He predicted the China Demographic collapse
You got all this wrong, the mexican economy is booming like crazy.
The Isthmu of Tehuantepec is the connection of the gulf of Mexico with the other side of mexico and the government is Investing heavy in that area. Thousands of companies are flooding that area.
Thousands of Americans are moving to Mexico. The Tren Maya is going to blow up even more the Mexican Carrebean tourism.
The peso is getting stronger every day.
The main issue here is the ineffectiveness of the Mexican State. It cannot enforce law, policy or even bearly controls its own territory. Less, it cannot provide services such as education, which is key to move from cheap manufacturing to a more advanced industry. Elite's interests are misaligned, which makes it harder to achieve long-term goals or even set them up. Not like China, which planned every step of the process to absorb the know-how of foreign companies investing in the country and push their own companies, subside factories' input and set up global production chains, even cornering some strategic natural resources. Mexican State doesn't have that capability.
Don't you find is suspicious when a government is telling you how great it is? This is why I'm a political independent.
You're very right
Always happy to spend my dawns watching your videos with a cup of coffee.
This makes me even more impressed by China's economic rise despite the West trying to pull them down at every turn.
That is why China gets all the hate.
I want to see the video about Poland! 🇵🇱
Our current economy is not that fascinating I believe, but EE could talk about how our economy changed and grown since the days of PRL. That'd be very interesting!
@@Creepernom Poland has the fastest growing economy in Europe and he already said that he’ll make a video about Poland but we’re still waiting.
@@urbanistgod Every eastern european country is saying that they're the fastest growing... In growth there are peaks and lows, so all of them can point to a specific spot where they were the highest, but statistically, most of eastern european countries have very similar growth rates.
I always admired Poland especially right now in NATO.
@@g.zoltan These are official numbers.
The only country that can come as close is INDIA itself,no other country can come close to China. INDIA is working very hard to resettle these companies from China to India and it's already working for them.also Vietnam is doing pretty well too
India is having limited manufacturing succes so far and it's to little to late. Yes you might hear and read lots of lofty articles but the results on the ground doesn't reflect that
@@blokin5039possibly, but I think it might be the case where there’s exponential growth - it might be a little slow now, but as the red tape, infrastructure, logistics etc. keeps improving it’ll start increasing.
@@ABBZ120 India has many structural problems and their manufacturing sector won't grow nearly fast enough to employ their huge and growing unemployed population. Remember they also have to share what's on offer with countries like Vietnam, Mexico and the likes.
@@blokin5039 very true, there are currently many inefficiencies - however I’m reading of many projects and initiatives in the pipeline to come and many that are already here that seem to go completely under the radar, that is probably why I’m more optimistic that it will improve. They foundations are being laid and it seems to be getting better.
@@ABBZ120 I've been reading Indian media for the past two years and while there are many construction projects going most of them face heavy delays and budget overruns. Lot's of talk about Apple moving there but one of their subcontractors Winstron recently shut their factory and I suggest you read about their reasoning for yourself. It's also not really a unified and stable country so I'm sceptical about India untill they prove me otherwise.
I don't know if your data is good, but it all sounds reasonable and informative. Thanks for the videos. Enjoying them greatly.
Is that Mérida, Yucatán at 5:13? That looks like Plaza Grande.
I’ve had Mexican bosses and Mexican employees in Mexico at various manufacturing facilities. The problem with Mexico is a cultural one. It remains a very class conscious society. As my boss once noted, ‘that guy (a senior exec) will never talk to (a smart first level manager) because he’s not in his circle.” Mexico WILL have a reasonable future, but never to the potential. The will to solve the large drug crime syndicate problem simply does not exist. As for immigration, the flow of Mexicans to the US is WAY LESS than in the past. Jobs are now available in Mexico, and many dual citizen Mexican-Americans retire in their former home towns.
As for the investment theory presented for FDI, let’s be real. ANY company invests in ANY location to make money. My experience of corporate life is that the C-suite is just as happy closing or expanding a facility in Ohio as it it in Juarez. The spreadsheet results are what drives the decision.
None of that is true my man, you don’t really know how we are as people. And you boss was racist
I hanged out with my directors as a junior software engineer in Mexico. They were more chilled than my bosses in the US.
@@ericktellez7632 Are you denying his lived experience?
@@ericktellez7632 I’ve seen nepotism out of your people so many times every company with a Hispanic hiring manager, and up becoming an extended family in my experience. Not much you can really change that.
@@rudysmith1552 Bush Sr, Bush Jr, Floridian Bush Jeb something I think, JFK jr and his brother, you have an entire party trying to get rid of the estate tax to allow rich millionaires to pass their wealth to their kids once the parents die with out any tax. You are projecting your failings to other people.
Some random UA-cam channel: "Trust me, bro."
Sincerely, I dislike the idea of questioning which country will or will not become the next china. I find the question of ‘how a country X can maximize its potential’ or ‘what it takes for a country x to maximize prosperity for its citizens’ way more interesting! Specially if you put the current workforce decline into the equation. ‘Is it possible for a poor country with an aging population to prosper?’ NOW THAT is a fascinating question!
People won't click than
UA-cam channels live on clickbait and China is the #1 topic in the US 15 years running. If you don't somehow namedrop China into the title your video will get far less view and also won't show up when people searches for China related topics.
This video isn't really about Mexico's potential to be good for it's own citizens, it's analying its potential to be used as a weapon against the Chinese economy. That is all Americans care about.
@@MiguelAlejandroVF Fine with me. The CCP needs to be brought down.
Can you please make a video about the Baltic States? Their economic progress and transition from planned economy to capitalism is truly impressive
Three videos. I don't want to see them poorly served getting only 1/3 of a video each.
Two things to consider:
1.- Population
2.- Government
In Mexico , the government is controlled by the US, they attend the best universities in the US, Carlos Salinas gortari got a master’s degree at Harvard!!!
China has managed alone, government implementing policies to strengthen their education and economy, helping the individuals who wanted to create their business with military intelligence, an example is Huawei, created using the government intelligence and money, Mexico won't do that because it is limited, and if it wasnt the case, they seem to have no desire to.
127 million in Mexico, 1billion in China.
Although there is not a single lie here, this video was surprisingly simplistic and with some negative bias. Kazakhstan video was way more optimistic lol. Being that said, I don't people really think Mexico would become the 2nd largest economy, but the current scenario could help the country to reduce poverty and helped industrialize underdeveloped regions.
Economics Explained, can you please make a video on the economy of Brunei. Thank you very much.
economy : oil, fancy things for the monarch
Hey, from Latvia 🎉
Bot.
what are u talkin
@@momentfragmentielementhe thinks that you're a bot
Hello
Me viene valiendo como 3 kilómetros de riata lo que diga éste guey . Jamás en la vida se había visto Tanta esperanza y patriotismo en el país
EXCELLENT VIDEO!!
I love your videos and I AM from Mexico. So I will answer this in once reply before watching the video 😅 corruption and safety. It is so unsafe inside Mexico you have NO idea. Small businesses getting extorted, is just not a good place to start a business rn.
China is developing Mexico and teaching the cartels other ways to make money besides drugs and killing.
Eres de Guanajuato o chihuahua. Los estados gobernados por el PRIAN son los que tienen más extorsionadores. Porque son muy corruptos.
Kijas we are not talking about small business here. We are talking about the big money, besides, Mexico is inundated with small business….. Are you kidding me allowed me to laugh so hard jajajaja right now Mexico has broken all the records of foreign investments mexico has a line of country waiting to be allowed to do business with mexico.
Corruption and violence will go away once the big bucks start to, rolling in
Se ve que no has viajado
@@eduardoavila6295 a quien le dices? 😹
The problem with Mexico mainly is that China plans its economy while Mexico doesn’t do any type of planning, Mexico drank three neoliberal kool-aid, China didn’t, also for some in the Mexican elites and politics having National technology and or multinational development with government support is seen as negative, again the neoliberal mantras that suggest them not to have or create national industries but conform with foreign ones exclusively. Corruption is high and scandalous as well, the politician class has zero political will to end it. Most of economic experts conform with old economic mantras of the 1980s similar to those of the old socialists of the 20th century. Mexico exclusively wants to compete for low wages and anchored salaries to the bottom for almost half a century, many Mexican companies fail and refuse to innovate and protest anytime salaries get increased, especially with AMLO, however this has not caused inflation and recovered purchase power, thus contributing to the general productivity of the market, however the Mexican elites are not able to see that and prefer wage slaves who barely buy anything instead of innovation and actual consumers. Most in the Mexican elites are inept unlike American and Chinese ones. The Mexican and Latin American elites are short sighted.
What Mexico desperately needs most : EDUCATION, EDUCATION, EDUCATION
When are you going to do an update @EconomicsExplained? I'm curious to see your ranking of China in the next update.
Always interesting, thank you.
Another "hold-on, not so fast" point to the whole "Mexico will be the new China" ideia is the long historic of Latin America being ... Latin America. With some respectable exceptions, the cycle of showing promises to improve, having great/unique opportunities at hand and wasting it all - what we call "chicken flights" in Brazil - is a strong reason to be skeptical.
It is not LatAm bring LatAm it’s literally the US meddling and couping countries and sanctioning them when they begin to affect the interests of US corporations in their countries. You need to keep the boot out of your mind and realize it isn’t “corruption” like what these white Americans keep yelling, it’s literally their government meddling in the region time after time.
Ficamos na renda média e as vezes toca na renda alta.
It's never going to change until we become strong enough to resist foreign intervention, since the sepoys always end up selling off everything we have built during the boom in exchange for pennies and a few "atta boys." The new owners either kill our industries in the cradle,before they can compete, or just turn them into rent operations.
china played the long game and they're cashing in right now,
I hope the west learns this lesson and start building up as soon as possible
They're cashing in because they face a permanent stall from self-made aging, debt, and pollution. Unfortunately Mainland China still remains far short of the value-added they need to offer to not get replaced by global competition.
墨西哥加油！💪🇲🇽🇨🇳
Viva Mexico!
The audience survey was actually kind of fun - would be cool if you did a video on the (generalised) responses, maybe on the second channel.
Im mexican and when i go to Texas, i feel at home. Texas belongs México in many ways.
No country will ever come close to being the next China..not Mexico, India, Indonesia or Timbuktu because you need strong INSTITUTIONS, INSTITUTIONS and more INSTRUCTIONS to inforce the rule of the law which majority of the world's government lack... selfishness, greed & human corruptions is what's holding us back...
Add Vietnam to that list.
Yeah Most of those countries and too small and underpopulated and India is anarchy and has the worst bureaucracy i have ever seen.
@@underdogtv2855 not anarchy but bureaucracy yes
Yep..plus India don't have enough bathrooms😂😂
Chinese people succeed on being greedy on money. Know what kind of greed you are talking about it.
I don't think Mexico has to become the next China. Its population is only 10% of what China's is. If Mexico can claw off a bit of China's current exports, it can have a huge effect on its population (assuming it gets distributed in a way that is at least not obscene.)
Also: New Zealand now has prohibited foreign people to buy homes in NZ unless permanent residents :D just saying haha. But its a good example 8:40 Mostly due to a specific country buying lots of property and lifting the prices beyond what locals could afford
Also Canada following New Zealand's example
@@luisrb7348 from what I hear, Vancouver had the same problem as Auckland with Chinese “investors” buying houses and some never even occupying them. This made a bubble that locals just couldn’t participate in.
this aged like warm milk behind a fridge...
I am a plumber with my own business . Many things that I installed are already being made in Mexico .
All the toilets that install are all made in Mexico . All the water heaters are mostly all made in Mexico . The tools used to be all made in China . Now all of Deaaltbis made in USA and Mexico . I’m not buying Chinese made stuff . I will prefer to buy made in this continent or European
They share the same Chinese boss though😂😂😂
I think you should take another look at Brazil.
In the last few years it has gone through profound modernization on its institutions and has solved pretty much every structural issue on its economy, as more recently it passed a major tax reform debureaucratizing the system. Many other reforms with same purpose was passed, the pension reform, labour reform and several other regulations made to bring more safety for investors. I think Brazil it's really set for a huge productivity growth in the next decades because of that. Its economy already proved itself very resilient having a lower inflation rate than the US's. Higher economic growth than most countries and lowering its unemployment, recently reaching an almost 10 years record low.
It would be a great analysis on how the implementation of orthodox economic policies better a country
Brazil is a great country with great people. However, it will never each even 50% of its potential. The political culture is beyond toxic and the popular leftists are going to completely retard the economy over the next few years.
He wont do that because he doesn’t approve of Lula’s progressive and leftists government, the same reason this video against Morena in Mexico exists
@@ericktellez7632 he does have some bias but that what i told is not at all a product of Lula's government. It became a common knowledge among politicians that the country must be modernized
Sure.
@@MrVitorao Lula and Dilma’s governments where both industrializing Brazil they are the reason the Brazilian economy managed to sustain the massive hit given by Bolsonaro who tried to handle the industry to the US and Europeans sending its gdp back to levels from a decade ago. Now it’s making progress once again under Lula.
I feel like it’s underground/illegal GDP would make an incredible contribution to a few of the categories in the rankings.
This. Only 40% of Mexicans pay taxes.
One thing that bugs me when people say Mexico's growth is not as high as some other developing nations is that Mexico industrialized a long time ago. Mexico has been independent for nearly 200 years, and it's industrialization began after the Mexican revolution in the early 20th century. NAFTA took advantage of a small but already established industrial base. Some developing counties only recently decolonized. Therefore their industrial base is fairly new. Of course they have high growth compared to zero growth they had prior to their independence. The U.S benefits a lot from their relationship with Mexico. If they could easily decouple their economy from Mexico, they would have done so under Trump. They basically just renamed NAFTA and made some Tweeks to it. Mexico would suffer more, but it would also hurt the U.S economy hard. Why even bother going there?
That's right Mexico has been developing for at least 100 years (counting from the revolution) but it still hasn't come.
I suspect the bother is a post Merida Agreement world where there could be some proxy conflict over Mexico.
Corruption, white supremacist and neocolonial ideology and mentality still prevalent in its institutions, politicians who get financed by US and West to undermine as a result of this ideology, religiosity has kept masses in ignorance, cartel deep state, and church's control of society are the main reasons why.
im in mexico for a year... in mexico city. it's a pretty wonderful city. I highly recommend it. That said, there are many negatives of life here. It is not perfect but the people of Mexico are mentally strong.
No mention of demographic data at all or did I miss it? Seems like a key data point to consider when comparing two nations' potential future roles in the world production chain and economic theatre.
As Mexican, I will be careful of the high crime rate. I've never been robbed and the last time I heard of a crime in my neighborhood was several years ago... but I'll be extra careful. Thanks for notifying.
Sure cabron
Every now and then these experts say some country will be next china😂😂
Ya I am sick of hearing that, people don’t realise how hard it is to become the next China when you have to compete against actual china which has had year to build out its infrastructure and develop it labour skills.
@@jimpaddy79 Not to mention developing its stealing, ahem, industrial espionage skills. China is also incredibly corrupt, pay off the right bureaucrat and you can do anything.
Yeah it is constant exaggeration. Plenty of countries will become much more important in the world economy and in tech development, but they will never reach the magnitude China did at their height
I would LOVE an Economics Explained video exploring the economics of the dark side of Mexico’s money
Seria como investigar a eua por su riqueza. Y te encontrarias con la sorpresa de que todo es robado a Punta de invaciones por recursos naturales😂😂
NOT TO MENTION, the train system being complete in the Southern portion end of 2023 that will also act as a transportation route. Currently almost finish route is from the state of CHIAPAS down to the end of Mexico, with 3 other train projects coming after in this rest of country for Mexico to have a fully modern day bullet system train in Country - Not even Usa or Canada.
4:13 with not accurate data....
Imports from Mexico: 455bn
Imports from China: 536bn
real info way different than mentioned....at least as stated in official US govt site, Mexico has been many years (on and off) the first partner of US along with china and canada
Peter Zeihan wants to know your location.
Lol
Jim Cramer of geopolitics
China has the same economic size as the Economy of the European Union. When you say that Mexico, India or Vietnam are the next China, it is equivalent to saying that they are the next EU. You underestimate China too much, deliberately lowering it to the level of Mexico or Vietnam.which is really ridiculous.
Chinese economy has it's fair share of problems
India going to become third largest in some years
India due to multiparty democracy only go for gradual reform unlike China with one party
India is society driven country where society triumph state many times unlike China is State driven country
Both have advantage & disadvantage
Remember his video months ago questioning China's GDP? Quite a few academics in the West hope China's reemergence is fake so they product "studies" to support their conclusion. Somehow an economic professor in Chicago can with satellite images tell China's "real economy" better than Ford Motor's China VP with his company's actual sales data. If China's GDP is fake I wonder who is buying up all those western goods,... unless those MNC are lying as well and this is all a conspiracy to fool the economists🤣
@@amitkumarsingh1709 Did you watch that Kraut video? I wouldn't really put to much weight on it, all those channels are propaganda. If it's true though, then India is in deep trouble since it means the ROI is the child of the colonial society of 1940s India and it needs to fall and be replaced by a regime more intune with modern Indian society.
I would love to see Mexico replace as much manufacturing as possible. The U.S. integrating with it's neighbor's for its security is a much better idea, and diversifying the manufacturing over south, southeast asia, and the americas seems like a good idea.
cartel empire
I was doing an electric service in a computer assembly in Chicago suburban,, it surprised me how much Mexican people are involved in the technology world,,,,,, that made me so happy,,, Vamos mexicanos!!!!