I was listening to NPR this morning, and turned on the radio in the middle of some comments about how a slowing U.S. economy might harm the economy of Mexico.
A professor at a Mexican university, possibly from the field of economics, mentioned something interesting. That being the Mexican workers who are sending remittances home, are usually employed in fields where they are most vulnerable to layoffs/firings during an economic slowdown in the U.S.(e.g., construction)
So if the U.S. economy catches an "economic cold," will the Mexican economy fare in a similar manner, or will it be more like "economic pneumonia" there? Given how dependent the Mexican government has become upon these remittances, I don't really know what might happen in both the short-term and long-term. I can only think of one friend who always talks about weighing the potential positives against the potential negatives re: anything an individual (or a country) chooses to do in life.
There was also a comment from a Mexican politician who was actually upset so many of Mexico's people have left for the U.S., leaving many Mexican towns almost wiped out, as to population. However, his comment is just a sidenote re: the economic issue.
I also heard mentioned on the radio today that consumer spending on new clothing has been dropping as people look to pay for their gasoline to get to and from work. Not sure if that might be a tiny indicator of a possible recession arriving in the U.S. by the end of the year or not.
Anyway, how do you think both the U.S. and Mexican economies will fare if the U.S. economy does enter a recession?




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