Originally Posted By: antiqueshell
I see I've hit a nerve, with all the incoming "comments" regarding
how only if typical Mexican auto worker sacrifices the rest of his
necessities of living costs can he afford to buy even the
cheapest car. The cost of living is cheaper in Mexico but the cost of that most inexpensive vehicle is still much more than it would be in the USA (taxes) so it doesn't negate the overall calculations. Again very few Mexican auto workers can actually afford to buy a cheap vehicle without sacrificing other necessities of life.
Again, another tripe-filled post. If he's making 7K a month and spending 2K on a car, he's not "sacrificing the necessities of life". He's got 5 grand to cover the rest of his costs, costs which are low because HE LIVES IN MEXICO!!!!!
Your posit is that these people are being paid slave wages and can't afford what they make. The reality is that they are paid well for where they are and they can most certainly afford the lower-tier products they manufacture.
Another example, a house:
Quote:
New housing registrations for the “Economic” segment, with price range up to MXN 223,591 (US$ 17,107), fell to 4% of the total in 2012, from 6% in 2011. The “Popular” segment, with price range up to MXN 378,967 (US$ 28,994) also declined from 60% of the total in 2012, from 64% in 2011.
Also, the income bracket we are dealing with, the personal income tax is 10.88% as per this list:
http://www.capitaltaxconsulting.com/international-tax/mexico/mexican-income-tax/
Which leaves them with an after-tax income of 68,181 (net), or $5,100 a month. Assuming their mortgage is around $1K a month, even if they bought the Fiesta, they'd still have 2K a month to cover the rest of their costs like power, food, gas....etc.
And they'd be living like many of our neighbours and probably better off than many students servicing massive educational debt
And this also of course assumes ONE working person, not a wife and husband both contributing to the income pool. If they both work on the line, these figures double.