The honesty of rulers begins with their highest authorities. If a president is honest, it is very likely that his collaborators will be honest; if he is corrupt, most of his officials will probably commit acts of corruption.
It is interesting to analyze whether the previous government moved towards honesty or corruption, and if the economic environment: inflation, devaluation, interest rates, public debt and migration of Mexicans to the US was reduced or increased.
Unfortunately, all the macroeconomic variables we listed worsened during the AMLO government.
The new president, Claudia Sheinbaum, received a country more deteriorated than AMLO. If she continues on the same path as the last government, the economy will get worse, and if she corrects the path she can move forward.
So far, there are no signs of changing path. He could start by correcting the decision, based on AMLO’s anger and revenge, to arbitrarily take away the independence of the Judiciary, which destroys one of the pillars of democracy, the division of powers, but he has not done so.
He has already inherited the confrontation with the Judiciary, which causes economic uncertainty and reduces investment.
If Claudia implements the same policies of the previous government, she will have the same results.
I would like the President to do well, because if she does well, more Mexicans will do better, and if she does poorly, the majority of Mexicans will do worse.
For things to go well, good wishes and promises are not enough, but rather taking concrete actions that indicate a change of path and the correction of errors.
Some of the changes that Sheinbaum must implement to correct the path and sow positive expectations are:
1.- Reduce the budget deficit, by reducing spending, and not by increasing taxes.
2.- Lower tax rates, both ISR and profits, which are higher than in the US, main foreign investors and business partners.
3.- Reduce procedures, bureaucracy, to create companies.
4.- Reduce the control and blackmail of organized crime in various parts of the country, where they actually govern.
5.- Provide greater security and guarantees so that our partners in the north, the US and Canada, invest more in Mexico.
6.- Reduce ‘labor protectionism’, which leads to millions of small businesses not hiring strangers as workers, they only work with their relatives: children, brothers or cousins, for fear of being sued and having to pay settlements that lead to close your small business. They would rather not grow than face those risks.
Without these changes, the economy will get worse every day..
