Pesos Just Don’t Go as Far as They Used to, and Neither do Dollars Sarah DeVries - MexicoNewsDaily.com
go to original December 9, 2021

I know I’m not alone here — on either side of the border.

Prices for everything are going up. Even with my particular advantages, I’m starting to feel the squeeze. Inflation in Mexico is up a record 7% last month, and the money that used to stretch quite a bit is rather suddenly no longer going nearly as far.

It’s 800 pesos here, 1,000 pesos there, another 850 here, 2,000 over here that you weren’t expecting, then 500 pesos at the store when it’s usually 300 … Pretty soon, you’re all pesoed out.

Wages for salaried workers in Mexico will soon be going up, which I applaud. For the millions of informal workers and those who work on contract, the jury’s out — and I’m not all that optimistic.

When people are suddenly spending a lot more money on the same things, they want to hold on to their money and save anywhere they’re able to. And keeping wages paid steady (and reducing hours, if you’re able to) is an easy way to do that because jobs are scarce enough that most people that need them aren’t just going to walk away and not eat.

It’s a tricky combination. And while I’ll freely admit that I don’t understand economics at all (money is symbolic and we collectively choose what value to give it – so why do we put ourselves through this?), I understand the social effects of economic need on a visceral level.

Read the full article at MexicoNewsDaily.com

Sarah DeVries is a writer and translator based in Xalapa, Veracruz. She can be reached through her website, sdevrieswritingandtranslating.com and her Patreon page.