Debt, a heavy burden

For almost a quarter of the century, Mexico has been relatively economically stable . The last big crisis , in 1995 , seems to have had a positive impact that has delivered good results. The free price of the dollar , the accumulation of international reserves , and putting a limit on the debt acquired by the federal government are some of these measures.

Economic problems

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individually, in the family, in companies or in the government when a simple rule is broken: spending more than you earn or when the debt is above the annual income. Although there is no written rule to establish an “optimum” level of debt in proportion to each country's wealth, several international governments and credit rating agencies advised Mexico that it's debt shouldn't exceed 40% of its gross domestic product.

Three years ago, Greece was on the verge of bankruptcy for maintaining percentages almost 5 times higher than its GDP ; Portugal, Ireland, and Spain showed higher unemployment rates, besides a drain in their public resources.

The Mexican deb t with proportion to the GDP started reaching dangerous levels two years ago. The foreign advice worked and pressured the Mexican government to stop increasing the debt. Although the tendency was corrected, the c urrent administration will leave Andrés Manuel López Obrador's government a debt of historical proportions: the biggest debt an administration has inherited in t he last three terms , when Ernesto Zedillo finished his term, in 2000 , the debt almost reached MXN $2 billion , since then, the debt has increased almost 5 times, reaching MXN $9.9 billion , equal to 42.2% of the GDP.

A country acquiring a debt doesn't have to be considered a bad decision. Those resources , well used, can be useful to spark off infrastructural projects , and to encourage development, or to face uncertain worldwide economic situations. What is condemnable is when the destination of the money is unknown or when taxes have to be raised to cover future compromises acquired through the debt. If there is n o public productive investment , there's always the possibility that it was wasted .

The incoming administration will inherit a heavy burden , which will get lighter if the economic management is a responsible one. This is the incoming team's commitment. The whole nation will be grateful if they keep their word.

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