Tuesday, March 10, 2009

A "Mexico boycott" is a very bad idea (for both of us)

Our friend Allan Wall will join us on Tuesday to review the Mexico situation. We will be live at 5pm CT or you can check the radio icon to the right!

Allan is one of our favorite guests because he has a foreigner's perspective on the situation south of the border.

A couple of days ago, Allan wrote about travelling to Mexico:

"In 2008, it is estimated that 17 million, six hundred thousand (that’s 17,600,000) Americans visited Mexico, and most of them were not victims of crime.

Once again, I’m not telling anybody where to take your vacation. Go wherever you like, and wherever you can afford.

But millions of Americans do like visiting Mexico, and most of them have a great time and even want to return.

Besides, some U.S. cities aren’t too safe either.

This past year, New Orleans had the highest U.S. crime rate, with 19,000 reported criminal acts including 209 murders.

I presume nearly all the murder victims were Americans.

So more Americans died in New Orleans (one city) than in all of Mexico."

Some have advocated a "boycott".

Let's be careful about that:

1) It will hurt Mexico a lot.

After all, Mexico needs to attract foreign investment to create the kind of economy that "employs all of its people".

As we have posted before, a prosperous Mexico is the best thing that could happen to the US.

Prosperous neighbors make great friends and customers. Just look at Canada!

2) It will hurt Mexico's tourism industry.

Where are all of those hotel workers going to look for work?

Have you noticed who works in our hotels?

3) It will hurt the Mexican peso, specially in light of the US business slowdown, the drop in "remittances" and the cost of fighting the border war.

Here is my advice: Are you travelling to Mexico?

Try this: Don't drive around border towns. That's where most of the violence is! By the way, how many beaches and resorts are in border towns anyway?

Let me suggest this to the Mexican government:

It would help if Mexico stops blaming the drug war on the US.

Yes, we consume.

We are not responsible for corrupt customs officials who look the other way when "bazookas" and "shoulder guided missiles" go over the border!

This drug war is also about corruption in Mexico. You can't be indifferent to corruption for 70 years without making your institutions corrupt.

I agree with Allan.

Let's say "no" to a boycott.

Let's continue to support Pres Calderon and the brave Mexican soldiers who are fighting a tough war!

P.S. By the way, there is a lot more going on in Mexico than the border war that properly consumes our coverage.

Mexico is also being impacted by the global recession. Check out The Financial Storm Hits Mexico: Their politicians aren't doing much to staunch the bleeding By MARY ANASTASIA O'GRADY:

"The crisis is captured in the plummeting peso, which has fallen more than 30% against the dollar in the past six months."




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