Geographical Relocation of Minimum Wages for Development Strategy in Private Sector

Abstract

Private entrepreneurship has historically been not only crucial to the development of capitalism, but the latter could not be understood without the former. This has provided capitalists an enormous capacity to impose patterns of accumulation, only moderate by government action. In the case of Mexico, the accumulation model, rooted in the building process of the Mexican state, was established to promoting competition through excessively low average wages and so depressed minimum wages that virtually are unmatched in the world but Africa, polarizing the national income level and narrowing the potential of the domestic market. This is the framework for the dissatisfaction of the business wing of the Council of Representatives of the National Minimum Wage Commission, which in November 2012 opposed the reclassification of all municipalities in the geographic area B to A and C to B, automatically disappearing the area with the lowest salary level. Contrary sensu, the measure should trigger a process to improve the purchasing power of workers for the benefit of aggregate demand, as do most emerging economies