The pandemic threatens to push more people in Mexico into poverty
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According to Mexico’s government, nearly half the country’s population lives below the poverty line. And the coronavirus pandemic threatens to make those numbers worse.
Marcelo Delajara, an economic researcher at the think tank Centro de Estudios Espinosa Yglesias, said about 46% of Mexico’s population is low-income. The country has high inequality and low social mobility.
“So it’s an economy much poorer than the U.S.,” he said.
Delajara said the economy wasn’t growing before the pandemic, and it was damaged by the Trump administration’s threats on trade. Now, with COVID-19, he said almost 1 in 5 people in the labor force have lost their jobs. And there’s little that the government provides for relief. Mexico doesn’t pay unemployment insurance.
But President Andrés Manuel López Obrador has defended his strategy. In a recent press conference, the president said his government is tightening its belt by cutting expenses and the salaries of some government workers.
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COVID-19 Economy FAQs
How many people are flying? Has traveled picked up?
Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.
How are Americans feeling about their finances?
Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.
Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.
What’s going to happen to retailers, especially with the holiday shopping season approaching?
A report out recently from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.
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