Insecurity and economy

On this occasion my dear reader, I want to address a topic much more grounded in the harsh reality that we have all experienced, being victims of a crime, how many times in the last two months have you been a victim of a crime? Personally, I can count myself 3 times in the statistics in the last two months, an attempted assault to take away my vehicle that did not go beyond a broken glass, auto parts theft and more recently, a glass of the car from where they stole my computer and other items have you suffered from something similar?

According to the current Secretary of Citizen Security of Mexico City Omar García Harfuch, crimes in the country’s capital in the period from October 2020 to September 2021, decreased by 46% in the annual comparison and has generated that, the perception of insecurity drops from 92% to 67%, on the federal side, according to data from the Executive Secretariat of the National Security System, the monthly average of intentional homicides in the country so far this administration is of 2,000 and the results of the National Census of Federal Public Safety, indicate that in 2020, 1,132 probable robberies and assaults were reported on roads and bridges under federal jurisdiction; 75.2% with a firearm; 65.3% to cargo trucks and 26.3% to private vehicles.

Considering all the above and assuming that you were the owner of a certain foreign capital, would you be willing to invest in this country? Probably yes, but from a more indirect point of view, that is, investing in securities or financial instruments without having to set foot on the territory or, if the capital is national, perhaps taking it to a less “risky” destination, a completely acceptable and logical, which, unfortunately, impacts the national economy and people’s pockets.

The lack of new investment in a country causes the productive base to not expand and therefore jobs are not generated, but, when investment not only does not arrive, but also leaves the country, then it causes the productive base to contract. If unemployment is generated and wages are less competitive, in the Mexican case, we are very close to beginning to see this situation as a result of insecurity, but also as a result of the poor economic policy decisions of the current government.

Proof of the above is that, according to the Mexico consultancy, how are we doing? working poverty in our country, which they define as: the situation in which people cannot buy the basic food basket for all members of a household with their labor income, was positioned in 40.7% of the population in the third quarter of this year, practically 4 percentage points above the minimum registered in the first quarter of 2020, which was 36.6%, which clearly indicates the negative trend in salary compensation, that is, fewer jobs are being employed every day and the that exist are poorly paid.

The lack of a strategy to combat insecurity completely reveals the lack of the rule of law that generates uncertainty and, therefore, drives away investment, generating an economic and social problem. How much can the Mexican economy endure on this path?

By the way, in terms of personal finances, consider the possibility of taking out insurance that covers mishaps such as theft or loss of goods, we cannot know when it will take care, but, if we can prevent that bad time, it causes us a problem greater and above all try as much as possible, to have your finances in order, in the following months, things will not be easy at all.

* The author is an academic from the School of Government and Economics of the Universidad Panamericana, a lecturer, an expert consultant on economic and public administration issues, founding director of the El Commentary of the Day site and headline host of the Voces Universitarias program.


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