Crisis in Mexico

The perfect storm for social upheaval is now brewing in Mexico

The second front is to the north. As the U.S. economy has slowed so have remittances from the United States to Mexico. The housing crunch has disproportionately affected Mexican labor (both legal and illegal). As U.S. construction, landscaping, remodeling, and other housing-related jobs have evaporated so has a vital source of income to Mexico.

The third storm front is food. America’s well-intentioned but misguided emphasis on ethanol has caused food prices to rise beyond the poor’s income. Corn prices have tripled and tortilla prices have soared. Food riots and protests are now common throughout Mexico and confidence in the government is eroding.

The result is this: income flows to Mexico are falling while social unrest is rising.

Albuquerque Journal