In fact, over the medium term, Mexico will have a much larger impact on the US than China.
Per capita GDP in China is US$800 a year. This leaves very little disposable income to spend. Mexico, with 1/12th of the population of China, has GDP per capita of $4900 a year.
Now let's see how much of that money can end in the hands of first world companies, be them AOL, VW or Dell.
Lets say that $20,000 (in Purchasing Parity dollars) is required for essential food and shelter expenses for a family of four.
At the end of the year, an average Mexican family would have $14,000 PPP dollars, or $7,900 (real US dollars) left in disposable income.
Meanwhile, a similar average Chinese family would have minus $4,000 PPP dollars or $-800 USD left in disposable income. |
