Mexico weighs fighting poverty with guaranteed minimum income

Mexico wants to launch a universal basic wage to combat the poverty that blights the lives of almost half the population, touting an experimental reform discussed globally as a solution to job losses from automation.

The center-right National Action Party and center-left Party of the Democratic Revolution are running on a joint ticket with the leftist Citizens Movement (MC) for next July’s presidential election, and the income plan is a key part of their manifesto.

Officials inside the alliance say details of the plan are still being worked out, though its contours are emerging.

A basic income of 10,000 pesos ($537) per year for everyone, including children, could be provided by consolidating funds from federal, state and municipal welfare programs, Jorge Alvarez, an MC congressman working on the plan told Reuters in a recent interview.

”If you multiply that by four or five, which is the typical size of a Mexican family, you get an annual income of 40,000 to 50,000 pesos per family, Alvarez said, adding that providing the income to children could be conditional on school enrollment.

Home to the richest man in Latin America, Carlos Slim, Mexico is laden with oil and minerals, boasts a large manufacturing base and has the world’s 15th biggest economy. But poverty has remained stubbornly stuck above 40 percent of the population for decades.

Government social development agency Coneval defines poverty as a person living on no more than 2,925 pesos a month in cities and 1,892 pesos in rural areas. The agency also takes into account other factors like healthcare and education.

Getting to 40,000 or 50,000 pesos per family could be achieved “without increasing taxes,” Alvarez said.

Still, the Organization for Economic Cooperation and Development argues that providing an unconditional basic income to everyone of working age would do little to combat poverty if not funded by extra taxes.

The idea of universal basic income has gained currency due to the increasing robotization of the workforce. Finland is running a pilot project to test whether unconditional payments could serve as a plausible alternative welfare model.

Mexico has seen job growth in recent years thanks to a manufacturing boom, and could face a smaller workforce as robots take over more tasks.

Swiss voters rejected a basic income plan in a referendum last year, while the defeated Socialist candidate in France’s presidential election this year, Benoit Hamon, championed it, saying it would be funded by a tax on robots that replace human labor.

Mexican gross domestic product was worth $1.046 trillion in 2016, according to the World Bank, but some 53.4 million Mexicans, or 43.6 percent of the population, live below the poverty line, according to Coneval.

($1 = 18.6239 Mexican pesos)

Mexico wants to launch a universal basic wage to combat the poverty that blights the lives of almost half the population, touting an experimental reform . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • protests3Mexico City Protests: There is a fine line between anti-gentrification and xenophobia The line between anti-gentrification and racism is clear if you choose to see it: genuine activism targets policy and practice, not nationality or ethnicity. I have lived in Mexico for two decades, and I have never witnessed the level of anti-American sentiment that exists today. All of it is tied to the buzzword "gentrification," a…
  • puerto vallarta lettersPuerto Vallarta needs a new image to create meaningful reasons for travelers to visit Business leaders at Jalisco Tourism Secretariat forums stressed the need for renewing Puerto Vallarta image and diversifying attractions to appeal to national and international markets. Local business leaders and tourism specialists agreed this week that Puerto Vallarta needs a fresh look and a broader range of attractions to compete at home and abroad. In a…
  • puerto-vallarta-police-chase-bahia-de-banderasPuerto Vallarta police chase ends in deadly collision in Bahía de Banderas A Puerto Vallarta police chase along Highway 200 ended in a deadly collision in Bahía de Banderas, leaving two people dead. A high-speed chase that began in Puerto Vallarta, Jalisco, and ended in Bahía de Banderas, Nayarit, left at least two people dead and raised new questions about police engagement and road safety in the…
  • Where do foreigners come from and where do they live in MexicoMexico City Protest on July 5 Challenges Gentrification and Airbnb’s Impact on Housing Residents of Roma and Condesa will gather at Parque México on July 5 to protest gentrification, rising rents, and Airbnb’s effect on local housing. This Saturday, July 5, Mexico City will witness its first organized citizen protest against gentrification—a peaceful but urgent gathering taking place at 3:30 p.m. at the Lindbergh Forum in Parque México,…
  • puerto-vallarta-rainfall-hurricane-flossie-july-2025Puerto Vallarta braces for torrential rains as Hurricane Flossie gains strength Puerto Vallarta faces a high risk of flooding as Hurricane Flossie intensifies in the Pacific. Torrential rains and overwhelmed drainage systems pose major challenges for the city. Puerto Vallarta, a city wedged between the Sierra Madre mountains and the Pacific Ocean, is no stranger to dramatic weather shifts—but this summer, the skies are testing the…
  • protestProtest graffiti and smashed windows mars anti-gentrification rally in Mexico City Residents and activists joined an anti-gentrification rally in Mexico Park, but the anti-gentrification rally Mexico Park turned destructive as masked youths defaced local shops and broke windows. A rally against gentrification held yesterday in Mexico City’s Parque México drew residents from Juárez, Roma, Condesa and Hipódromo alongside local activists. Organizers billed it as the city’s…
  • Body with signs of crocodile attack found in Ameca River, a leg was found last monthPurple Flag Warns Beachgoers after Crocodile at Los Muertos Beach Authorities raised a purple flag after a crocodile at Los Muertos Beach was spotted swimming near shore, advising visitors to avoid entering the water until safety checks ended. Local authorities recorded a crocodile swimming in the vicinity of Los Muertos Beach, one of Puerto Vallarta’s busiest tourist spots. Lifeguards spotted the reptile in shallow water…
  • mexico city real estateGentrification in Mexico City is not the reason for the high cost of housing City housing shortage, not gentrification, drives prices skyward as planning lags behind demand and foreigner influence remains minimal. High real estate costs in Mexico City stem from a deep and persistent housing shortage—exacerbated by land constraints, tangled regulations and speculative investment—rather than by the presence of foreign residents. Despite headlines blaming “gentrification,” foreign-born residents make…
  • puerto vallarta loses three blue flag beachesPuerto Vallarta retains four Blue Flag Beaches, down from eight Puerto Vallarta will enter the 2025–2026 season with four international Blue Flag distinctions in Puerto Vallarta, even after tourism-driven environmental damage cost it half of its previous honors. The Foundation for Environmental Education (FEE) in Mexico confirmed that three resort flags will be revalidated at Marriott Puerto Vallarta Resort & Spa, The Westin Resort &…
  • cancun-beaches-50-tons-sargassum-cleanupSargassum in Quintana Roo Hits 76 Beaches from Cancun to Tulum, Only 24 Clean Beaches Sargassum in Quintana Roo has reached moderate to excessive levels on 76 beaches—including Cancun—as cleanup crews race to protect tourism and coastal ecosystems. A recent survey from the Quintana Roo Sargassum Monitoring Network and the Sargassum Citizen Observatory shows 76 out of 100 beaches on the state’s Caribbean coast now face moderate to excessive seaweed…
Scroll to Top