Mexico's Socialist President turns capitalist

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cassowary
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Mexico's Socialist President turns capitalist

Post by cassowary » Sat Jan 05, 2019 7:30 am

Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D

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Sertorio
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Re: Mexico's Socialist President turns capitalist

Post by Sertorio » Sat Jan 05, 2019 10:24 am

cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
I doubt you know what either concept means...

neverfail
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Re: Mexico's Socialist President turns capitalist

Post by neverfail » Sat Jan 05, 2019 1:21 pm

Sertorio wrote:
Sat Jan 05, 2019 10:24 am
cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
I doubt you know what either concept means...
Being a capitalist in a position of political power seems to mean that you milk the system for all that you can get out of it. Look at Donald Trump!

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cassowary
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Re: Mexico's Socialist President turns capitalist

Post by cassowary » Sat Jan 05, 2019 6:22 pm

Sertorio wrote:
Sat Jan 05, 2019 10:24 am
cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
I doubt you know what either concept means...
In that case, why don't you explain it to me? I am willing to listen.

neverfail
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Re: Mexico's Socialist President turns capitalist

Post by neverfail » Sat Jan 05, 2019 6:39 pm

cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
Seems to me that you are too easily taken by labels cass. In politics that is usually a mistake.

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Doc
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Re: Mexico's Socialist President turns capitalist

Post by Doc » Sun Jan 06, 2019 9:48 am

neverfail wrote:
Sat Jan 05, 2019 6:39 pm
cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
Seems to me that you are too easily taken by labels cass. In politics that is usually a mistake.
THe new trade deal will be an economic boom to Mexico. If enforced as it is written many times more money from manufacturing in Mexico will stay in Mexico Obrador knows this and knows enough that all he has to do is to play along to get the credit.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

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cassowary
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Re: Mexico's Socialist President turns capitalist

Post by cassowary » Mon Jan 07, 2019 2:29 am

neverfail wrote:
Sat Jan 05, 2019 6:39 pm
cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
Seems to me that you are too easily taken by labels cass. In politics that is usually a mistake.
Not really. I am used to it. For example, I have been saying here that China's "socialism with Chinese characteristic" is really capitalism (apart from their state owned enterprises).

Generally speaking, right wing parties support lower taxes, deregulation and free trade. Left wing parties support unions, higher taxes, more regulation and protectionism.

In Obrador's case, he is cutting taxes for a strip of land parallel to the US Mexico border. Cutting taxes is something a right wing guy (ie pro businesse) wants to do. So he is not acting like a Socialist.

neverfail
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Re: Mexico overview.

Post by neverfail » Mon Jan 07, 2019 3:42 am

López Obrador, seems to understand on which side his country's bread is buttered.
Economy - overview: This entry briefly describes the type of economy, including the degree of market orientation, the level of economic development, the most important natural resources, and the unique areas of specialization. It also characterizes major economic events and policy changes in the most recent 12 months and may include a statement about one or two key future macroeconomic trends. Economy - overview field listing
Mexico's $2.4 trillion economy – 11th largest in the world - has become increasingly oriented toward manufacturing since the North American Free Trade Agreement (NAFTA) entered into force in 1994. Per capita income is roughly one-third that of the US; income distribution remains highly unequal.

Mexico has become the US' second-largest export market and third-largest source of imports. In 2017, two-way trade in goods and services exceeded $623 billion. Mexico has free trade agreements with 46 countries, putting more than 90% of its trade under free trade agreements. In 2012, Mexico formed the Pacific Alliance with Peru, Colombia, and Chile.

Mexico's current government, led by President Enrique PENA NIETO, has emphasized economic reforms, passing and implementing sweeping energy, financial, fiscal, and telecommunications reform legislation, among others, with the long-term aim to improve competitiveness and economic growth across the Mexican economy. Since 2015, Mexico has held public auctions of oil and gas exploration and development rights and for long-term electric power generation contracts. Mexico has also issued permits for private sector import, distribution, and retail sales of refined petroleum products in an effort to attract private investment into the energy sector and boost production.

Since 2013, Mexico’s economic growth has averaged 2% annually, falling short of private-sector expectations that President PENA NIETO’s sweeping reforms would bolster economic prospects. Growth is predicted to remain below potential given falling oil production, weak oil prices, structural issues such as low productivity, high inequality, a large informal sector employing over half of the workforce, weak rule of law, and corruption. Mexico’s economy remains vulnerable to uncertainty surrounding the future of NAFTA — because the United States is its top trading partner and the two countries share integrated supply chains — and to potential shifts in domestic policies following the inauguration of a new a president in December 2018.

https://www.cia.gov/library/publication ... os/mx.html
Further info. from the same source:

Mexico relies upon the US to buy almost four fifth of its exports - that is greater export dependence on the US than Canada's two thirds dependency - Canada being the only other foreign country that the USA shares a common terrestrial frontier with.

When it comes to imports, with slightly less than half of these coming from the US (compared to Canada's two thirds) Mexico is less import dependent on the US than is Canada.

Whilst Canada is around 30% dependent on exports as a pro-rata of its GDP, I know not how export dependent Mexico is overall. With a population over 3 times larger than Canada's it is not unlikely that mexico relies more on the production of goods and services for domestic consumption and less on export income than does canada. As a broad, imperfect rule i find that the worldwide trend is for the more populous countries to be more self-contained in GDP and the smaller countries more international trade reliant for their prosperity.
......................................................................................................

P.S. Mexico's annual average economic growth rate of around 2% per year might seem unexciting - until you realise that their population growth rate is now barely 1.1% per year. Inderence is that average incomes in Mexico ought to be growing.

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Sertorio
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Re: Mexico's Socialist President turns capitalist

Post by Sertorio » Mon Jan 07, 2019 3:53 am

cassowary wrote:
Mon Jan 07, 2019 2:29 am
neverfail wrote:
Sat Jan 05, 2019 6:39 pm
cassowary wrote:
Sat Jan 05, 2019 7:30 am
Obrador announces tax cuts for border zone
Andrés Manuel López Obrador announced last Saturday what is called the Tax Incentive Decree for the Northern Border Region that will create a “free zone” along the border with the U.S that is 15.5 miles (25 kilometers) wide. It encompasses nearly 2,000 miles, all the way from the Gulf of Mexico to the Pacific coast.
Looks like my fears of another Venezuela in Mexico is not necessary. The Socialist is becoming a capitalist! :D
Seems to me that you are too easily taken by labels cass. In politics that is usually a mistake.
Not really. I am used to it. For example, I have been saying here that China's "socialism with Chinese characteristic" is really capitalism (apart from their state owned enterprises).

Generally speaking, right wing parties support lower taxes, deregulation and free trade. Left wing parties support unions, higher taxes, more regulation and protectionism.

In Obrador's case, he is cutting taxes for a strip of land parallel to the US Mexico border. Cutting taxes is something a right wing guy (ie pro businesse) wants to do. So he is not acting like a Socialist.
A market economy and capitalism are two very different things, although a market economy may also be capitalist. China follows a market economy model, but it is wrong to call it capitalist.

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SteveFoerster
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Re: Mexico's Socialist President turns capitalist

Post by SteveFoerster » Mon Jan 07, 2019 8:25 am

cassowary wrote:
Mon Jan 07, 2019 2:29 am
For example, I have been saying here that China's "socialism with Chinese characteristic" is really capitalism (apart from their state owned enterprises).
That's an exception big enough to drive "not capitalism" through.

The conflation of corporatism with laissez-faire capitalism is an unhelpful as the conflation of Scandinavian-style social democracy with Venezuelan-style socialism.

In both cases, the two are not the same thing and shouldn't be referred to by the same term.
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