1996-10-24 Local Press - Purchasing Power Continues its Decline
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Purchasing Power Continues its Decline
According to Mexico's Labor Congress, the purchasing power of Mexican wages has fallen almost 50% over the past nine years, when the economic agreements between the government, business and official labor unions known as "pacts" were first established. During this period, the price of the basic goods increased 663.30%, while wages increased only 375%. This means that the purchasing power of workers on average has fallen 43.34% during this period. (La Jornada, 21 October).
Meanwhile, another study by the National Committee to Protect the Minimum Wage (Conanpros), shows that the basic basket of goods required for a family of five increased 140.9% during the first 22 months of the Zedillo administration while the minimum wage only increased 47.9%.
This is how prices and wages have evolved (in pesos)
|
|
Basic Basket of goods (family of 5)
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Minimum Wage (per month)
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Dec. 1994
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688.50
|
458
|
|
Sept. 1996
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1,659.00
|
670
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In other words, the minimum wage doesn't even cover 40% of the basic basket of goods. Thus, Conanpros notes, "a worker would have to earn more than double the minimum wage to be able to acquire only the foods in the basic basket of goods, without including other necessities like clothes, housing, health care, transport and shoes." (La Jornada, 22 October).