Can we eliminate Mexico’s informal economy? Should we?

4/28/2016 El Daily Post

peso by Guanatos GwynIt’s hard to imagine a Mexico without an informal sector. But maybe that’s because we haven’t had a chance to even consider such a thing in living memory. There are sound economic reasons for wanting to bring Mexico’s vast “gray economy” into line. Doing it, however, is another story.

The official goal, at all levels of government in Mexico, is to eliminate the informal economy.It’s a goal not just because of the lost tax revenue that off-the-books employment and unregistered businesses cost the public treasury. Nor is it just because informal vendors are a nuisance.

It’s because the immense size of the Mexican informal sector is a drag on economic growth.

he numbers tell the story.

As of the end of 2015, Mexicans who work in the informal sector make up more than half the labor force.

In other words, 53.4 percent of Mexicans who earn money do it without paying taxes or even being registered with the tax service (SAT) of the Finance Secretariat. They are not enrolled in the Social Security System. They are not officially employed or registered as a business.

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Enrique Peña Nieto’s ‘economy first’ strategy for Mexico would also help US [Op-ed]

Op-ed, Luis Rubio, Christian Science Monitor, 12/3/2012

Luis Rubio
Luis Rubio

Mexico confounds. If one watches the news, either here or in the United States, most of what comes out about this country is violence among the drug cartels. But if one looks at its economy, Mexico has become the largest trading partner of almost 30 US states.

President Enrique Peña Nieto, who took office on Saturday, wants to change that mismatch by putting the economy first, which will require addressing the onslaught of the narco mafia in a very different way from his predecessor. This new approach has great potential, including improved public safety, and is one that Mexico’s northern neighbor should also embrace.

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Mexico’s Post Election Economy Topic of Offshore Group Podcast

Market Watch, 7/26/2012

Luis De La Calle

Dr. Luis de la Calle, recently sat down with The Offshore Group to discuss the current state of Mexico’s economy, as well as changes and reforms that may result from the election of Enrique Pena Nieto to country’s presidency earlier this month. Pena Nieto is the first candidate from the Mexico’s Institutional Revolutionary Party (PRI) to hold the post since Ernesto Zedillo left the office in 2000.

During the session, Dr. de la Calle cites the possibility of reform, going forward, in three critical areas.

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