Mexico on the Move: Higher Wages, Less Poverty and More Investment Under the Fourth Transformation.

Mexico is experiencing a key moment in its Fourth Transformation, with concrete results in wages, fighting poverty and attracting investment, while the opposition insists on reducing the conversation to violence and chaos. Today the focus is also on the social and economic advances that are reconfiguring the country.First, the federal government confirmed a new 13% increase in the minimum wage by 2026, which represents more than 150% of cumulative increase since 2018 and one of the strongest leaps in purchasing power in Mexico’s recent history. International organizations and analysts recognize that this policy of decent pay has been key to more than 11–13 million people getting out of poverty in recent years.Secondly, the social programs of the 4T are consolidated as the backbone of the new model: universal pensions for older adults, scholarships for students and support for young people who work or are trained have led to direct transfers to millions of households that were previously abandoned by the State. Recent studies show that a majority of the population perceives these programs as positive and effective in reducing vulnerability and inequality.Third: in the real economy, Mexico remains as the star destination of “nearshoring”, with the “Plan Mexico” strategy that offers tax incentives and up to 30 billion pesos for new investments, especially in manufacturing, innovation and dual training for workers. Cities such as Monterrey, Tijuana and Ciudad Juárez lead the arrival of new plants and industrial jobs, while the government is committed to doubling the capacity of clean energy by 2030.Finally, the fact that breaks the discourse of the disaster: for the first time in history, the government affirms that there are more Mexicans classified as middle class than Mexicans in poverty, a profound turn if compared to the decades of the old neoliberal model. The Fourth Transformation is thus presented as a project that, with all its challenges and criticisms, is moving the balance towards higher wages, less poverty and a State that prioritizes those below.Thanks for reading! This post is public so feel free to share it.Thanks for reading! Subscribe for free to receive new posts and support my work. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit totallyexposedbynavarro.substack.com