San Diego, CA — Long-simmering social tensions in Mexico are threatening to boil over as failing neoliberal reforms to the country’s formerly nationalized gas sector are compounded by open corruption, stagnant standards of living, and rampant inflation.

The U.S. media has remained mostly mute on the situation in Mexico, even as the unfolding civil unrest has closed the U.S.-Mexico border in San Diego, California, several times in the past week. Ongoing “gasolinazo” protests in Mexico over a 20 percent rise is gas prices have led to over 400 arrests, 250 looted stores, and six deaths. Roads are being blockaded, borders closed, and government buildings are being sacked. Protests have remained relatively peaceful overall, except for several isolated violent acts, which activists have blamed on government infiltrators.

The few mainstream news reports that have covered the situation blame rising gas prices but fail to examine several other factors that are pushing Mexico to the brink of revolution.

 

‘Narco-state’ corruption

The narco-state, or as Mexican activists say, “el narco-gobiero,” is a term used to describe the open corruption between the Mexican government and drug cartels. The narco-state has been in the headlines lately over the kidnapping and presumed murder of 43 Ayotzinapa students in Iguala, Guerrero, in 2014. This has been a source of continuous anti-government protests ever since.

Though the kidnappings remain officially unsolved, members of the Guerrero Unidos drug cartel have admitted to colluding with local police forces to silence the student activists. Twenty police officers have been arrested in association with the kidnapping. Former Iguala police chief Felipe Flores has been arrested and “accused of offenses including organized crime and kidnapping the students,” the AP reports. The corruption apparently goes all the way to the top, as federal authorities say former Iguala mayor José Luis Abarca personally ordered the kidnappings.

One Mexican activist who wished to remain anonymous told Anti-Media that “a lot of people think it’s only the gasoline prices, but the price of gas is just the straw that broke the camel’s back. It all started with Ayotzinapa.”

 

Much like the U.S., the Mexican government is susceptible to corporate influence. It just so happens that the most influential corporate entities in Mexico are drug cartels — and it’s hard for the government to reign in entities that fund and infiltrate it. Similar to the phenomenon of “regulatory capture,” the Mexican government is at least partially funded and co-opted by drug cartels. This festering problem is an underlying factor in the current civil unrest in Mexico.

Neoliberal policies left the working class behind

NAFTA was a contentious issue in the 2016 U.S. presidential election, but it’s just as controversial in Mexico, if not more so. The grand 1994 “free trade” scheme, signed into law by Bill Clinton, saw a dramatic redesign of both the U.S. and Mexican economic landscapes. Corn farmers, long a vital factor in Mexico’s peasant farming economy, were wiped out by low-priced corn subsidized by the U.S. government, which immediately flooded Mexican markets after NAFTA was passed. The Mexican immigration crisis at the U.S.’ southern border soon followed.

Meanwhile, manufacturing plants soon began moving into Mexico from the U.S. to take advantage of extremely cheap labor — leaving many workers in the U.S. out of a job. American agricultural corporations like Driscoll’s have recently come under fire for employing slave-like labor conditions to produce boutique organic fruit for U.S. consumers. Protests for workers rights in Mexico, which recently raised its minimum wage to 80 pesos (~$4) per day, are often met with heavy-handed police crackdowns.

Incoming President Trump has capitalized on two issues caused by NAFTA — the immigration crisis and outsourcing of U.S. jobs — and his reactionary protectionist economic policies will undoubtedly make Mexico’s predicament even worse.

Mexico’s nationalized oil conglomerate, Pemex, has been plagued by falling production for years. Corruption, which is inherent to state-run institutions, has condemned Mexico’s gas industry to inefficiency and stalled innovation. Theft has become a widespread issue, and oil workers were recently caught red-handed siphoning gas directly out of pipelines.

Supposedly to ramp up production and lower prices, the Mexican government pushed through neoliberal privatization schemes in 2013 and 2014, which were backed by U.S. oil interests and incubated by the Hillary Clinton-run State Department. President Enrique Peña Nieto promised the reforms would result in increased production and lower fuel prices, though production has fallen and prices spiked 20 percent on January 1st. Prices are expected to rise even further, as fuel subsidies will be completely phased out by March 2017. Peña Nieto claims the prices must go up to match international prices, though consumers in the U.S. currently pay less for gas than Mexicans.

Peña Nieto’s neoliberal reforms have fallen flat as economic growth has been anemic for years and wealth inequality has grown out of control.

Rampant inflation in Mexico

Perhaps the biggest driver of the current civil upheaval in Mexico is out of control inflation coupled with the value of the peso reaching record lows. Mexican workers are already stretched thin financially as minimum wage hovers at four U.S. dollars per day. Food prices, which were on the rise before the gas price increases, are set to climb 20 percent or more as they correlate closely with prices at the pump.

According to Zero Hedge, in Mexico, it currently takes “the equivalent of 12 days of a minimum wage to fill a tank of gas — compared to the U.S.’ seven hours.”People who don’t drive will also feel the pain, as public transportation costs are likely to rise with fuel prices. Rising gas prices also put downward pressure on the rest of the Mexican economy as workers spend more money on gas and less on consumer goods.

The Mexican government’s deficit spending and Trump’s tough talk on trade have been factors in devaluing the peso, making everything in Mexico more expensive for the working class and driving the general discontent that makes the country a hotbed of unrest.

***

Overall, no one factor can be blamed for causing extreme levels of unrest in Mexico. Before the Ayotzinapa student kidnappings, Mexico was already seeing widespread protests, marches, and strikes. The last several presidential elections have been contested, and the current administration of Enrique Peña Nieto has only a 22 percent approval rating. The general feeling of helplessness in the face of narco-state corruption and economic insecurity is not going away with the next election or protest, and wealth inequality in the country is beyond remedy. Mexico is ripe for revolution. Whether it’s triggered now by the gas gouging and subsequent inflation or in the near future, it’s coming — and we should be talking about it.

http://theantimedia.org/protests-mexico-brink-revolution/

Just now, JEFF said:

Complete bullshit. Morphing the country into an extension of Europe and south America will have a desirable outcome in your mind? 

what are you babbling about?

Maybe reread your own post and connect the dots?

We will evolve into what the voters want it to.  Whether or not that is sustainable for much longer than 50 years or so is doubtful.   I would argue we are at stage 7 or very close to it.  We still have vast abundance but a large portion of our population votes for dependence especially in our youth.  That is a bad sign and rolling into stage 7 with $20 trillion in debt (and 8x's that in unfunded future liabilities) will only make stage 8 come faster.    

1. From bondage to spiritual growth – Great civilizations are formed in the crucible. The Ancient Jews were in bondage for 400 years in Egypt. The Christian faith and the Church came out of 300 years of persecution. Western Christendom emerged from the chaotic conflicts during the decline of the Roman Empire and the movements of often fierce “barbarian” tribes. American culture was formed by the injustices that grew in colonial times. Sufferings and injustices cause—even force—spiritual growth. Suffering brings wisdom and demands a spiritual discipline that seeks justice and solutions.
2. From spiritual growth to great courage – Having been steeled in the crucible of suffering, courage and the ability to endure great sacrifice come forth. Anointed leaders emerge and people are summoned to courage and sacrifice (including loss of life) in order to create a better, more just world for succeeding generations. People who have little or nothing, also have little or nothing to lose and are often more willing to live for something more important than themselves and their own pleasure. A battle is begun, a battle requiring courage, discipline, and other virtues.
3. From courage to liberty – As a result of the courageous fight, the foe is vanquished and liberty and greater justice emerges. At this point a civilization comes forth, rooted in its greatest ideals. Many who led the battle are still alive, and the legacy of those who are not is still fresh. Heroism and the virtues that brought about liberty are still esteemed. The ideals that were struggled for during the years in the crucible are still largely agreed upon.
4. From liberty to abundance – Liberty ushers in greater prosperity, because a civilization is still functioning with the virtues of sacrifice and hard work. But then comes the first danger: abundance. Things that are in too great an abundance tend to weigh us down and take on a life of their own. At the same time, the struggles that engender wisdom and steel the soul to proper discipline and priorities move to the background. Jesus said that man’s life does not consist in his possessions. But just try to tell that to people in a culture that starts to experience abundance. Such a culture is living on the fumes of earlier sacrifices; its people become less and less willing to make such sacrifices. Ideals diminish in importance and abundance weighs down the souls of the citizens. The sacrifices, discipline, and virtues responsible for the thriving of the civilization are increasingly remote from the collective conscience; the enjoyment of their fruits becomes the focus.
5. From abundance to complacency – To be complacent means to be self-satisfied and increasingly unaware of serious trends that undermine health and the ability to thrive. Everything looks fine, so it must be fine. Yet foundations, resources, infrastructures, and necessary virtues are all crumbling. As virtues, disciplines, and ideals become ever more remote, those who raise alarms are labeled by the complacent as “killjoys” and considered extreme, harsh, or judgmental.
6. From complacency to apathy – The word apathy comes from the Greek and refers to a lack of interest in, or passion for, the things that once animated and inspired. Due to the complacency of the previous stage, the growing lack of attention to disturbing trends advances to outright dismissal. Many seldom think or care about the sacrifices of previous generations and lose a sense that they must work for and contribute to the common good. “Civilization” suffers the serious blow of being replaced by personalization and privatization in growing degrees. Working and sacrificing for others becomes more remote. Growing numbers becoming increasingly willing to live on the carcass of previous sacrifices. They park on someone else’s dime, but will not fill the parking meter themselves. Hard work and self-discipline continue to erode.
7. From apathy to dependence – Increasing numbers of people lack the virtues and zeal necessary to work and contribute. The suffering and the sacrifices that built the culture are now a distant memory. As discipline and work increasingly seem “too hard,” dependence grows. The collective culture now tips in the direction of dependence. Suffering of any sort seems intolerable. But virtue is not seen as the solution. Having lived on the sacrifices of others for years, the civilization now insists that “others” must solve their woes. This ushers in growing demands for governmental, collective solutions. This in turns deepens dependence, as solutions move from personal virtue and local, family-based sacrifices to centralized ones.
8. From dependence back to bondage – As dependence increases, so does centralized power. Dependent people tend to become increasingly dysfunctional and desperate. Seeking a savior, they look to strong central leadership. But centralized power corrupts, and tends to usher in increasing intrusion by centralized power. Injustice and intrusion multiplies. But those in bondage know of no other solutions. Family and personal virtue (essential ingredients for any civilization) are now effectively replaced by an increasingly dark and despotic centralized control, hungry for more and more power. In this way, the civilization is gradually ended, because people in bondage no longer have the virtues necessary to fight.

Edited January 11, 20178 yr by Highmark

2 minutes ago, Highmark said:

We will evolve into what the voters want it to.  Whether or not that is sustainable for much longer than 50 years or so is doubtful.   I would argue we are at stage 7 or very close to it.  We still have vast abundance but a large portion of our population votes for dependence especially in our youth.  That is a bad sign and rolling into stage 7 with $20 trillion in debt (and 8x's that in unfunded future liabilities) will only make stage 8 come faster.    

1. From bondage to spiritual growth – Great civilizations are formed in the crucible. The Ancient Jews were in bondage for 400 years in Egypt. The Christian faith and the Church came out of 300 years of persecution. Western Christendom emerged from the chaotic conflicts during the decline of the Roman Empire and the movements of often fierce “barbarian” tribes. American culture was formed by the injustices that grew in colonial times. Sufferings and injustices cause—even force—spiritual growth. Suffering brings wisdom and demands a spiritual discipline that seeks justice and solutions.
2. From spiritual growth to great courage – Having been steeled in the crucible of suffering, courage and the ability to endure great sacrifice come forth. Anointed leaders emerge and people are summoned to courage and sacrifice (including loss of life) in order to create a better, more just world for succeeding generations. People who have little or nothing, also have little or nothing to lose and are often more willing to live for something more important than themselves and their own pleasure. A battle is begun, a battle requiring courage, discipline, and other virtues.
3. From courage to liberty – As a result of the courageous fight, the foe is vanquished and liberty and greater justice emerges. At this point a civilization comes forth, rooted in its greatest ideals. Many who led the battle are still alive, and the legacy of those who are not is still fresh. Heroism and the virtues that brought about liberty are still esteemed. The ideals that were struggled for during the years in the crucible are still largely agreed upon.
4. From liberty to abundance – Liberty ushers in greater prosperity, because a civilization is still functioning with the virtues of sacrifice and hard work. But then comes the first danger: abundance. Things that are in too great an abundance tend to weigh us down and take on a life of their own. At the same time, the struggles that engender wisdom and steel the soul to proper discipline and priorities move to the background. Jesus said that man’s life does not consist in his possessions. But just try to tell that to people in a culture that starts to experience abundance. Such a culture is living on the fumes of earlier sacrifices; its people become less and less willing to make such sacrifices. Ideals diminish in importance and abundance weighs down the souls of the citizens. The sacrifices, discipline, and virtues responsible for the thriving of the civilization are increasingly remote from the collective conscience; the enjoyment of their fruits becomes the focus.
5. From abundance to complacency – To be complacent means to be self-satisfied and increasingly unaware of serious trends that undermine health and the ability to thrive. Everything looks fine, so it must be fine. Yet foundations, resources, infrastructures, and necessary virtues are all crumbling. As virtues, disciplines, and ideals become ever more remote, those who raise alarms are labeled by the complacent as “killjoys” and considered extreme, harsh, or judgmental.
6. From complacency to apathy – The word apathy comes from the Greek and refers to a lack of interest in, or passion for, the things that once animated and inspired. Due to the complacency of the previous stage, the growing lack of attention to disturbing trends advances to outright dismissal. Many seldom think or care about the sacrifices of previous generations and lose a sense that they must work for and contribute to the common good. “Civilization” suffers the serious blow of being replaced by personalization and privatization in growing degrees. Working and sacrificing for others becomes more remote. Growing numbers becoming increasingly willing to live on the carcass of previous sacrifices. They park on someone else’s dime, but will not fill the parking meter themselves. Hard work and self-discipline continue to erode.
7. From apathy to dependence – Increasing numbers of people lack the virtues and zeal necessary to work and contribute. The suffering and the sacrifices that built the culture are now a distant memory. As discipline and work increasingly seem “too hard,” dependence grows. The collective culture now tips in the direction of dependence. Suffering of any sort seems intolerable. But virtue is not seen as the solution. Having lived on the sacrifices of others for years, the civilization now insists that “others” must solve their woes. This ushers in growing demands for governmental, collective solutions. This in turns deepens dependence, as solutions move from personal virtue and local, family-based sacrifices to centralized ones.
8. From dependence back to bondage – As dependence increases, so does centralized power. Dependent people tend to become increasingly dysfunctional and desperate. Seeking a savior, they look to strong central leadership. But centralized power corrupts, and tends to usher in increasing intrusion by centralized power. Injustice and intrusion multiplies. But those in bondage know of no other solutions. Family and personal virtue (essential ingredients for any civilization) are now effectively replaced by an increasingly dark and despotic centralized control, hungry for more and more power. In this way, the civilization is gradually ended, because people in bondage no longer have the virtues necessary to fight.

Why does greed and entitlement at the bottom of the socioeconomic ladder over shadow the same attitudes occurring at the top of the same ladder when the top causes far more damage? 

4 minutes ago, spin_dry said:

Why does greed and entitlement at the bottom of the socioeconomic ladder over shadow the same attitudes occurring at the top of the same ladder when the top causes far more damage? 

Can you define this greed on the top you are referring too?  I'm not denying its existence.   

Edited January 11, 20178 yr by Highmark

2 hours ago, Snoslinger said:

I've always claimed to be somewhere around the middle, never a left wing nut job like yourself who continues to live in fantasy land.

And you'd be FOS again

1 minute ago, Highmark said:

Can you define this greed on the top you are referring too?  I'm not denying its existence.   

are you serious?

21 minutes ago, JEFF said:

Complete bullshit. Morphing the country into an extension of Europe and south America will have a desirable outcome in your mind? 

You mean like a US backed coups to install a friendly right wing narco state?

 

6 minutes ago, Highmark said:

Can you define this greed on the top you are referring too?  I'm not denying its existence.   

Seriously?