US Dollar banknotes are seen in Chicago, United States on October 18, 2022. (Photo by Jakub … [+] Porzycki/NurPhoto via Getty Images)
NurPhoto via Getty Images
One of the most powerful drivers of Mexican economic growth is economic activity that takes place outside of Mexico. Specifically, economic activity within the United States. Stop and think about that. The previous truth exists as a thorough rejection of modern economic theory promoted by individuals within the Keynesian, monetarist, and Austrian schools.
Mexico receives an estimated $63 billion worth of remittances from U.S. workers annually. The impact of remittances on Mexico’s economy is greater than both oil and tourism.
To the Keynesians, the obvious question to ask is why government spending in Mexico isn’t the biggest driver of growth? After all, Keynesians claim government spending is the source of substantial…
