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Small Business in Mexico


lakeside7
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Over the Christmas holidays I had the chance to met and socialize with Mexicans who are owner operators of small businesses in Guadalajara , and the opportunity to learn the daily challenges they face .

A change from the daily interface with the maid and gardener and their  limited understanding of how the rest of Mexico works

Their main problems centre on the availability of obtaining good and reliable help who do not want to steal or cheat from you. Secondly are "worried" for the outcome of this Presidents polices and concern that Mexico does not go down the way of Venezuela   

Interestingly , In addition to the required AGUINALDO, during the mid year they are also obliged to pay REPARTO de UTILIDADES  or "Profit Share". Many of the larger corporations get around this obligation by hiring workers thro a third party "on Contract". I wonder if this "profit sharing" will eventually  extend to our maid and gardeniers if and when they hear we Gringo's also receive dividends from our investments?:rolleyes:

 

 

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1 hour ago, lakeside7 said:

Secondly are "worried" for the outcome of this Presidents polices and concern that Mexico does not go down the way of Venezuela 

That is pretty funny when you consider many of the most happy, prosperous, well fed, social benefit countries in the world are Socialist or Social Democratic or Progressives - whatever way you want to put it. Then consider China, already second largest economy in the world, about to eclipse the U.S.A. with foreign influence and power is Communist. There are more billionaires in China than the U.S.A. and they are all registered Communists.

The main reason they have problems attracting employees and dedicated managers is because they are cheap. I was told this a long time ago in Puerto Vallarta, if you want a long time loyal manager or key employee - buy them a house, they can live there free of charge, and if they reach retirement, they get the title.

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China is only prospering because they adopted free market capitalist economic policies. As Milton Friedman said many years ago, "Capitalism is the unequal distribution of prosperity. Socialism is the equal distribution of poverty."

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"Capitalism is the unequal distribution of prosperity. Socialism is the equal distribution of poverty."

Scholars have suggested that the Nordic model is close to what Marx had in mind as the next stage of historic socio-economic development.

The Norwegian sovereign wealth fund holds and manages about a quarter million dollars per capita for its' population.

Public debt in the US totals roughly the same amount, per capita, 

 

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21 hours ago, Jreboll said:

Prosperity is unequal because access to it is not obtained as easily by all.  Some would argue that it is due to laziness, circumstance, ability, or chance but we all know we don’t play on an even field. To deny this is disingenuous.

Everything in the world is unequal, It is the natural way. All people are not equal in height, weight, intellect, motivation, appetite for risk, skin color, hair color or ability. To be so ain't natural. Counter to what some ill informed believe there are no guarantees of equality in our founding documents.  Sure there references to being equal in the eyes of the law. In the days of revolution France claimed for Equality while the United states of America declared for Liberty. That was Liberty to pursue happiness or profession or education or business as you wished.

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36 minutes ago, geeser said:

Everything in the world is unequal, It is the natural way. All people are not equal in height, weight, intellect, motivation, appetite for risk, skin color, hair color or ability. To be so ain't natural. Counter to what some ill informed believe there are no guarantees of equality in our founding documents.  Sure there references to being equal in the eyes of the law. In the days of revolution France claimed for Equality while the United states of America declared for Liberty. That was Liberty to pursue happiness or profession or education or business as you wished.

You are stating the obvious, however, imagine if you will a foot race between a blind man and one who cannot see.  Now let’s suppose the sighted person starts placing obstacles in front of the blind man.  Would you say that is fair?

and that is what happens when an individual goes up against a corporation or a wealthy person.  I don’t suppose we could expect a level playing field. Now some laws exist to defend us against abuses by powerful people but those persons will always find ways to circumvent the laws.

 

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