Will a Minimum Wage Increase Spur Mexico’s Economy?
Greg Ahlgren, partner at Diaz, Reus & Targ: “López Obrador’s economic policies are beset by challenges on many fronts, and there are no simple solutions. While the improvement of the purchasing power of Mexican families is a laudable and necessary long-term policy objective, the achievement of household income growth must be aligned with post-NAFTA plans for maintaining Mexico’s global competitive position. Mexico’s minimum wage hike will almost certainly produce a higher rate of
inflation for 2020, but that is not the only anticipated effect...”