New Mexican President to Slash Income for Top Politicians, Bankers, and Lawyers
Mexico’s President-elect, Andrés Manuel López Obrador, has promised that his first act as the President of Mexico will be to cut his own salary from US$160,000 to just US$69,500. By doing this, he will also be cutting the salaries of nearly 300 Mexican politicians. This is because Mexico’s constitution stipulates that no public officials can make more money that the President. On top of these cuts, López Obrador also plans to enact income caps for bankers and those working in the Judicial Branch. In addition to salary cuts, he has said that retirement pensions and health care plans will be reduced.
López Obrador is very aware of the problems that his country faces, and he hopes that these actions will steer Mexico in a “new ethical direction”. He wants to ensure that those working at the top of Mexico are people who are there for the purpose of the job rather than for the paycheck. He wishes to close the economic divide between rich and poor in the country, and wants to use the money saved in these cuts to aid those most in need.
The plan, of course, is not unanimously loved. Critics have argued that these cuts will influence highly trained and experienced people to vacate powerful positions and leave them to those lesser qualified. It is also feared that these cuts will drive high-potential young people to leave Mexico instead of pursuing a life at home because they can make more money abroad. If this happens, critics claim, Mexico will only be in a worse position than it is now.
López Obrador begins his six-year term on December 1stand, if he sticks to his guns, so will the salary-cuts. López Obrador is coming out strong against the Mexican political leadership, which has seen over 130 assassinations over the past nine months, in a display of faith that Mexico can be better with effort. As his term transpires it will be interesting to see how many people stay in their current positions despite the wage cuts and to observe their effectiveness.