Influence of capitalism in the population and the Mexican economy
In Mexico there are about four million companies, of which about 97% of them are considered microenterprises. However, foreign companies knead more fortune than the small combined companies, considering that these large companies are less than 1% of those in Mexico we have the question:
Capitalism is a system that represents the natural freedom that all human beings have, no one has tied to do something against our will, the only limitations come from ourselves. Our success depends on ourselves, there is no state that limits us in what we can do (as long as it is not out of the law). It is believed that capitalism was developed by Adam Smith in 1776 and propitiated by the United States, it was introduced to Mexico throughout its history due to the commercial and cultural relations that are with our neighboring northern country.
Mexico and the United States have a complex relationship, from a historical aspect we have always had conflicts with them, but we also have many agreements with them. The rhetoric of the United States was the one that promoted capitalism in the region and with it around the period of Porfirio Díaz in the 1880s the national economy began to gravitate towards that model, which gave different structural developments in various cities of the country,But the ones who suffered the most were the people of limited resources, since although they were not physically enslaved if they were monetarily with their workplaces.
Subsequently, the Mexican Revolution in 1910 caused the government to not apply the Constitution effectively, effectively giving the national economy a hard blow. Lazaro Cárdenas in the 1930Keys.
The processes that carried out from Lazaro Cárdenas allowed the country to enter a period of economic bonanza called the Mexican miracle, the growth rate was increased and inflation was reduced in one of the slightest points in history. From the government of President Luis Echeverría in 1970 he proposed a more shared development with much more intervention by the State with the aim of controlling the country’s bad feeling towards the rulers.
During the period of José López Portillo unfortunately our main industry, oil was affected by the fall in international prices of black liquid, so the feeling that Mexico was a rich country declined, many entrepreneurs retired from the country and there wereCapital escape, this led the government to request loans which made the country’s solvency seriously affected. When President Miguel de la Madrid entered power, payments began to suspend our creditors, so this also forced Mexico to have to accept products from abroad with a preferential fiscal burden, these and other steps gave Mexico the ability torecover from your foreign debt to a more acceptable level.
Subsequently Carlos Salinas de Gortari tried to establish his economic idea in Mexico, including a commercial agreement for the country with his northern neighbors, he promoted the national industry, stabilized prices and basically introduced Mexico to globalization, this caused little that littleLittle different foreign companies will enter Mexico throughout the 90s, so the bank was also privatized. After the mandate of Carlos Salinas de Gortari, a great recession came the Mexican peso undervalued against the dollar, the internal savings was greatly reduced and so that the crisis did not extend more the United States financed Mexico in exchange for oil and if notI could pay their debts they would use that oil fund.
Today, the Mexican economy is not as competitive as it was in about 50 years ago, prices became more expensive and inflation razed the salaries of the people of Mexico, the country requires urgent structural changes. Globalization and capitalism promotes the right to private property and the free market, each one is free to start competing with local and foreign companies in a fair and free environment the hands of the State, this has led to small businesses to beThey are in that, small businesses, while the largest are even bigger.
Both capitalism and globalization bring its advantages and disadvantages, being a great disadvantage that the national economy decreases because local companies cannot face the greatest that generally come from abroad, however consumers have more options to chooseThe time to buy. Mexico requires structural improvements that are able to increase the country’s ability to produce several goods and services without depending on other countries, it requires food and energy independence. The small Mexican companies are dying of excessive taxes, the fierce competition caused by capitalism and for the problems of generalized insecurity in the country.
These structural improvements must be designed in current Mexico and must focus on the business aspect first, encouraging the small producer, the tax incorporation regime is not sufficient when the average person cannot have a decent housing with their salary, the littleincentive that is for the generation of local businesses causes people to decide to go for a job of very low salary and that salary is not enough to be financially independent, the last thing they would think is to open a business when they do not have to be able tofeed.
The government should create a credit system for initial business Infonavit that depends on how long you work and Amases Capital. And with the help of the government you can open a company. In the same way, to encourage Mexican work, promote local businesses, invest in advertising infrastructure for a common good, and above all that the fiscal resources obtained are destined for the correct development of cities and infrastructure.
In my opinion I would call this new structural system "assisted capitalism", in order to have a balance between the capitalist system and socialism, the government in this new system will give the corresponding support to local businesses, in the same way encouraging foreign companiesTo invest in Mexico as long as its workforce is Mexican and that a part of its income is left in Mexico, the presidential fiscal forgiveness will not be allowed and a new fiscal reform will be established capable of simplifying the fiscal processes of the companies, emphasizing SMEs and obtaining free quality advice. The ISR must be reduced by percentage and improve the scheme of the tax incorporation regime to extend the term of tax exemptions for an additional year.
In conclusion we can say that capitalism in Mexico is very extremist, both throughout its history and in current life, poor administration and injustices have given the environment so that the people of Mexico cannot develop its maximum potential. With good luck the current presidency can remedy the damage done in our country for more than 200 years ago.
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