A macroeconomic policy in favor of human and labor rights in Mexico.

• In Event: Poverty, Welfare and Human Rights Policies

Abstract

The low wages and the low quality of the jobs for most of the unskilled labor force in Mexico have resulted in a growing social inequality that reflects an inequitable distribution of income. However, the renegotiation of the North American Free Trade Agreement (NAFTA) and the new tariff policy of the Donald Trump administration leads to consider the possibility for reaching acceptable levels of social justice in Mexico. Such hypothesis would consider two measures to achieve economic justice: i) the development of the domestic market through a macroeconomic policy based on human rights, whose guiding axes are a monetary policy in which the interest rate looks at maintaining a price stability while promoting productive investments; and ii) a fiscal policy aiming at reducing tax evasion and higher collection levels through progressive taxes. The paper has three sections: 1) A discussion of the poor working conditions under the global supply chains operating in Mexico, aiming at clarifying how the development of the productive forces has affected the labor conditions; 2) The socioeconomic issues, focusing on the situation of unskilled Mexican workers linked to global supply chains; and 3) The macroeconomic policy chosen for the development of Mexico, further referring to the institutional changes that the next federal administration must implement to attain acceptable levels of social justice.

Author

• Ximena Valentina Echenique Romero