Thousands Rally Against Fox Tax Plans in Mexico

[Tony]

http://www.foxnews.com/story/0,2933,104252,00.html

MEXICO CITY — Union members, left-wing activists and farmers by the thousand marched to the capital's central plaza Thursday in a major display of opposition to the president's plans to raise taxes on food and medicine and sell state-owned assets.

The crowd estimated by police at 80,000 packed major avenues from Mexico's independence monument to the city center. The march had been billed as Mexico's largest in years, but the turnout fell short of the 150,000 predicted by organizers.

The march was largely peaceful, with demonstrators chanting "Our country is not for sale!" Still, authorities dispatched thousands of police to guard against possible violence, arresting at least four people in the afternoon along Reforma Avenue, the capital's main drag.




Anybody versed in Mexican politics care to opine on this issue? Who are the bad guys? What is the background story leading up to this? Why is the Mexican economy in the sh!tter?

[The Don]

Originally posted by Tony
Why is the Mexican economy in the sh!tter?

Here's a group with a particular axe to grind with their idea

http://www.developmentgap.org/rmalecon.html
http://www.developmentgap.org/heredia_nafta.html

Of course it doesn't necessarily mean they're wrong

Links to articles which are less partial

http://www.latin-focus.com/latinfocus/countries/mexico/mexico.htm

In short:

- In Mexico there are a lot of poorly educated poor people
- You need raw materials and/or a skilled workforce to make strides, Mexico is limited in both
- Quiet a lot of econonies are in the outhouse at the moment

[Jon_in_london]

Well, I guess the reason they are upset about the selling off of state owned assests is that it ends of costing the taxpayer a fortune for deteriorating public services.

[Chupacabras]

Being a mexican, I can tell you that I find marches at the capital city largely unimpressive. Many, many people are paid (usually a misery wage) just to carry a slogan or shout something, regardless of their true convictions (if they might have any).

... Well, I guess the reason they are upset about the selling off of state owned assests is that it ends of costing the taxpayer a fortune for deteriorating public services.

Maybe they are used to the government feeding them and they fear they will have to work someday. For 70 years the govt. used institutions as an unemployment counterbalance. It also got people - specially in Mexico City - deep into subsides. It's hard to leave that back and start thinking real.

Many people in this country find offense if you suggest what happens in Mexico City is what happens in the rest of the country.

[Tony]

Hey Chupacabras,

Could you give us some background to this issue? What are the biggest problems facing the Mexican Economy at this time? IS the government in Mexico typically left-wing or right-wing?

[Chupacabras]

Originally posted by Tony
What are the biggest problems facing the Mexican Economy at this time? IS the government in Mexico typically left-wing or right-wing?

Thank you,

The fuss nowadays is that the government tried to tax certain products considered as "basic" (I wish books were seriously considered as basic, but anyway). the PRI party, who traditionally governed this country until Fox, opposed fiercely this proposal, but after the elections this year, they changed their discourse and in fact the PRI party proposed a new tax to production. So, the problem is about debating the tax strategy for the next year, rather than steering the economy back in control. President Fox also proposed to get rid of some infrastucture, and that scares people because they fear they might loose their jobs with a change of management. In the end, all has been fear of change, but we haven't been able to do a real test.

On spite of some unemployment (which I think there will allways be), I don't think that critics have a point against the current state of the economy which, if anything, has been quite solid.

As of the government, the current governing party, the PAN, is identified to the right, whereas the PRI party was is traditionally identified with the center and left (depending on the presidential term). The other major party in Mexico is the PRD, which is to the left.

HTH

[Frank Newgent]

Though I am not a Mexican I have spent a lot of time there either doing business or just enjoying the pleasures of that very special country. (Guaymas and shrimp al mojo de ajo)

Aren't Fox and the PAN also attempting to somehow develop (to be kind) the type of rational tax structure required to fund what is just taken for granted in the US, such as the infrastructure of a decent highway system and public schooling?

And since so many folks live at subsistence level and make whatever spare pesos they may have through sheer entrepreneurial know how, the idea of volunteering this income to be taxed is considered lunacy.