Over the last 25 years, the wage gap between Mexico and the United States has grown progressively wider, making U.S. jobs increasingly attractive. This is a major reason for the increasing influx of immigrants from Mexico to the United States, says D. Sean Shurtleff, a student fellow with the National Center for Policy Analysis.
After adjusting for inflation:
A number of studies have shown that an economy’s growth rate is positively related to the degree of economic freedom in that country. Economic freedom, which is a prerequisite for economic growth, means institutions that are characterised by personal choice, voluntary exchange, freedom to compete and protection of person and property. It requires such public policies as open markets, limited government, stable monetary growth, free trade and a strong rule of law. For example, an NCPA study by economists James Gwartney and Robert Lawson found that:
In Mexico, factors that have limited economic freedom for decades include unsound monetary policy, government corruption and insecure property rights. Improvement in these and other areas have increased economic freedom in recent years, reports Shurtleff.
Source: D. Sean Shurtleff, Economic Freedom and Economic Growth in Mexico, National Center for Policy Analysis, Brief Analysis No. 605, January 18, 2008.
For text: http://www.ncpa.org/pub/ba/ba605/
For more on Economic Issues: http://www.ncpa.org/sub/dpd/index.php?Article_Category=17
FMF Policy Bulletin/ 22 January 2008
