The quintessential problem of Mexico

Undoubtedly, the consequences of inequality would be milder if we had a better rate of development and they would also be easier to combat.

Of course, it is impossible to ignore or disdain the seriousness of the problem of inequality in the world and specifically in Mexico. But neither is the argument that the former mayor of Azcapotzalco, Vidal Llerenas, tries to impose on us, in the sense that it is the “public problem par excellence”. In Mexico, there are other more serious public problems such as insecurity, which, it is worth remembering, affects the majority classes to a greater extent. And as regards the economy, it is much more important to attack and begin to solve the problem of insufficient economic development that the country suffers.

Undoubtedly, the consequences of inequality would be milder if we had a better rate of development and they would also be easier to combat. There is a false starting point in Llerenas’s arguments, since they are underlying the aspiration that was fundamental for the communist countries to seek arithmetic equality for all. But that aspiration is an impossible utopia to achieve, like all those of its kind. What is within the reach of the peoples is a more advanced level of development, but to achieve it, appropriate economic policies are needed. Do not go around proposing taxes “on wealth”, totally crazy.

Germany is a good example of what I am trying to explain. It is a country in which a very high level of physical and human capital has been achieved. And from that capitalization a state of great prosperity has been derived for the citizens of that European nation. But in Germany, no late-night man would come up with the strange idea of ​​creating a special tax to, for example, tax the shareholders of the Mercedes Benz factory more heavily on the grounds that they are proving too successful.

The editorial writer Llerenas is right that “it is not enough to try to fight poverty through social programs or government actions.” But don’t lose sight of trying to focus the discussion on enemies who are not. In economic matters, the public problem par excellence is the lack of development. The ideal answer in this regard was given by the former Secretary of the Treasury, Eduardo Suárez, to his predecessor Alberto Pani, when the latter published the book The Supreme Problem of Mexico: “No, Mr. Engineer, the supreme problem is economic development … ”.

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Bruno Donatello

Columnist

Economic Debate



Reference-www.eleconomista.com.mx

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