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# Mexico’s a class act, in numerous ways
- URL: https://www.smdp.com/mexicos-a-class-act-in-numerous-ways/
- Published: 2006-06-12T15:00:00.000Z
- Updated: 2026-10-25T00:14:59.000Z
- Author: Guest Author
- Tags: Opinion, Santa Monica, #archive-import

*By (Carole Orlin)*

In the midst of the endless, redundant debates about the issue of illegal immigration, we find ourselves bombarded with stories about the rampant poverty in Mexico. We are told that the United States is the only hope for these desperate people and their desperate country. Mexican President Vicente Fox was even in the U.S. recently admonishing us for how we choose to strengthen our borders and for our token gestures at untangling the chaos of illegal immigration into our country.

All I could think of at the time was, Vicente, get your own act together, and then you can teach us how to handle our problems. Now, I am thinking that he knows exactly what he is doing.

I recently had an opportunity to review a back issue of Business Week Magazine (March 13, 2006) and was shocked to read an article entitled: “Piggybanks Full Of Pesos.” The article focused on Mexico’s rapidly growing middle class. I was amazed by what I was reading, as my concept of Mexico, like everyone who reads the papers and watches the news, revolves around: widespread poverty; a small, wealthy elite class; virtually no middle class, hopelessness; and mass corruption. This article educated me about the other side of Mexico, the one that is rarely the focus of attention in the media.

Writer Geri Smith discussed the emergence of Mexico, a country of more than 106 million people, “as a middle class nation where millions have access to mortgages, solid jobs provide security, and a class of strivers saves to put its kids through college.” According to the Business Week article, the number of middle class in Mexico have swelled to about 10 million families, or nearly 40 percent of all Mexican households. As recently as 1992, the number of middle class households was only approximately 5 million. Wages have been rising faster than inflation for more than a decade. Women are having fewer children and are joining the workforce, which allows for more money to both spend and save. However, home ownership according to this article, is the key factor for Mexico’s transformation, as it enables the homeowners to build equity, establish credit histories and therefore, improve their economic status. The country is in the middle of a housing boom that is similar to our post World War II period of growth and expansion. Over 560,000 new mortgage-financed homes were built last year, which almost doubles the number built in 2000, and 750,000 more are expected in 2006\. In addition, banks are fiercely competing with each other to offer mortgages.

Mexico has seen its annual inflation decline to 3 percent, and interest rates have been steadily falling. Rates on a 20-year fixed-rate mortgage are 9 percent a year, down from 18 percent two years ago. University enrollment has doubled to more than 2.4 million over the past five years, and private universities quadrupled their enrollment to nearly 1 million over the same time. They also have tuition-free public universities and technical schools, although they are having a hard time meeting the demand. This emerging middle class is putting a high emphasis on education as a way to move up the economic ladder. G.E. Latin America, a major consumer finance provider has opened up 194 storefront GE money outlets around the country that offer cash loans from $100 to $1,100, credit cards, auto loans, insurance policies and home mortgages. They have even begun offering mortgages for vacation homes at beach resorts, because about a year ago they began seeing the Mexican middle class buying second homes. A record 1.13 million cars and small trucks were sold last year, up 33 percent from 2002\. In Mexico City and Monterey, tickets for two recent U2 concerts (with prices ranging from $10 to $220) sold out in less than five hours. The CFO of Corporation Interamericana de Entretenimiento, has reflected that: “There is more disposable income nowadays.”

A recent article by Source ESB (May 17) reports that outsourced manufacturing has been “booming” in Mexico. Large appliance and automotive manufacturers have been in Mexico for decades, but more recently the electronics industry is doing much more business in Mexico. Several factors seem to account for this boom. One is that the time zones match closer to the U.S. than, for example, Asia or India. Secondly, there is a growing pool of skilled Mexican engineers there to support manufacturing. As a matter of fact, many consider Guadalajara the “manufacturing hub for EMS” (electronic manufacturing services). People are looking to Mexico more and more as a spot to produce new products, partly due to its close proximity to the U.S., and partly due to a noticeable increase of highly competent engineers.

This has led me to ponder many things. Why has this not been the focus of more stories reported by our news organizations? Where is the “balanced reporting” from the media? How can we make an educated decision about issues directly impacting on our social, economic and political well-being if we are not exposed to all of the facts so that we may get a true picture? How can we make intelligent assessments of the highly volatile issues surrounding our immigration policies? How is our American middle class faring with the backbreaking burdens put upon it by our southern neighbor?

Maybe we should start taking lessons from them. How about Vicente Fox for President in 2008?

*Originally published in the Santa Monica Daily Press print edition on June 12, 2006.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/061206.pdf?ref=smdp.com)