Billionaire businessman Carlos Slim believes the Mexican government has its priorities wrong on welfare spending.
On Wednesday, he asserted that it is “totally irrational” for the government to be spending so much on pensions for seniors — more than 1.3 trillion pesos last year — when millions of people live in extreme poverty.
Speaking in Monterrey, Nuevo León, at the 19th World Summit of Nobel Laureates for Peace, Mexico’s richest person spoke about the need to not just “combat” poverty but “eliminate” it.
“There has to be a minimum level of well-being for the entire population. It’s incredible that in … Mexico we haven’t achieved it. … We’re giving too much income to retirees and we have six million people in extreme poverty. It’s totally irrational,” said Slim, the owner of companies such as Telcel, Telmex, Sanborns and Carso Infrastructure and Construction.
All Mexicans over the age of 65 qualify for the government’s universal senior’s pension program regardless of their wealth or how much they receive from other pension schemes.
That means that even 84-year-old Slim, who has a net worth of some US $89 billion, can collect a 6,000-peso (US $311) universal pension payment every two months. While he doesn’t need the money, many older Mexicans — especially those who worked in the vast informal sector and don’t receive any other retirement income from the government or private employers — certainly do.
Although the universal pension amount is quite modest, its payment could help to reduce poverty levels in Mexico. President Andrés Manuel López Obrador and other federal officials regularly highlight that the number of people living in poverty has declined during the term of the current government, in part due to welfare and social programs, as well as other factors such as increases to the minimum wage.
On Wednesday, Slim argued that Mexico has the potential to lift living standards considerably in coming years. With adequate investment in the country, Mexico’s per capita GDP — just under US $14,000 annually in 2023 — could double in the space of 12 years, he said.
“We have to take advantage of the opportunity with the United States now that it is on bad terms with China,” Slim said, referring to the U.S.-China trade war.
He predicted in 2022 that the Mexican economy would boom in the years ahead as the United States reduces its reliance on Chinese-made products.
“The products they imported from [China] will have to be produced here,” the magnate said.
“… What I see … is a prosperous Mexico with sustained growth, with a lot of opportunities for job creation and economic activities,” he said.
With reports from El Universal, El Economista and Forbes México
What a sorry excuse for a man! He’s worse than Trump and Musk! His Telcel and Telmex are huge rip offs that more often than not don’t function properly. If he had his way they would raise the retirement age to 75 and have a 60 hour work week. 😤
Yes, the audacity!
I agree with you except to the fact that no one is worse than Trump.
I think it is interesting to see how some people that have no facts let there emotions lead them. If you checked the facts on Trump’s presidency you would see a much healthier US than you see today. Comments about Musk, you must not know the really great things he has done with his wealth different than most wealthy people in the US. The path of the current US administration is dangerous and K Harris will follow. In Mexico we need a strong US.
Nice demonstration of TDS, all three of you. You can always spot the TDS crazed, doesn’t matter what the topic is or what country it is about, “Trump” is always topic #1. You people are too stupid to see how you’ve let this guy live in your heads to the exclusion of everything else.
The derangement really applies to his cult followers–not to his political toadies–who believe any lie that comes out of his mouth.
It seems Slim has a point: shouldn’t the universal senior’s pension program be reserved for those without accumulated wealth or without other pensions from which to draw upon? A reform worth discussion.
I agree 👍
Absolutely. The pension scheme is not like social security where the recipients have paid into it. It is a welfare program and it should be focused on those who need it.
Agreed
Quit thinking about how much money this man has did he say something true or not. No government can spend more than they take in in taxes. Yes they can do that for some time but not and definitely which is what the United States has done. We are in for one rude wake up call in the future
My friend is 70 and collects that measly sum, barely enough for utilities and food. He lives rent free in his sister’s garage thank goodness. He has no accumulated wealth, has no work pension. Was on commission selling rugs and curios for years to tourists. This won’t get anyone ahead. So Slim says my friend should not have this tiny income? and let it go to others who have not put in their many hours yet in a job? If he likes the idea, maybe he can help subsidize that program and give back a little. What I would love to really see, is a “businessman” like Slim, who cares about the people, offer microloans for people that don’t want to be a burden on the system, this way the loan can help an individual start a business, so they can have money to pay taxes and be proud of what they’ve built. Good example for their kids, so they wont be a second and third generation welfare family. I know there has been those loans but very small, barely enough for a lady to purchase a sewing machine for seamstress work. I know if I had a ton of money like lottery winnings, that’s been on my mind to do, help the people help themselves. Plus create an assisted living facility we desperately need.
These comments coming from a man who has 90 BILLION dollars. The interest alone from that money would eliminate the poverty he is speaking of. And as far as all of the new economic future I’m pretty sure it will add many more billions to his meager 90 BILLION.
Agreed
Quit thinking about how much money this man has did he say something true or not. No government can spend more than they take in in taxes. Yes they can do that for some time but not and definitely which is what the United States has done. We are in for one rude wake up call in the future
I agree 100%. I agree with the small pension but this should be given to the poorest not to those who already have some income.
Who are the ‘worthy’ poors? is just a Machiavellian 101 tactic to divide people. Really? 3000 pesos per month for all seniors is keeping the truly poor in Mexico in poverty? Not explained in the article, nor presumably by Slim. Does Slim suggest more bureaucracy to distinguish the deserving from the non deserving? Maybe not in a billionaire’s case, but a large amount of those seniors are going to spend those pesos in their neighborhoods supporting small businesses.
If Slim is so worried about the poor why doesn’t he help out? He has made his extreme wealth by overcharging Mexicans for decades! Shameless audacity!
I hope Trump wins the presidency. But even if he does I think the United States days are numbered. It is not just the financial mess we’re going to face in the future but the education system has not taught Civics in the universities for years and now in high school they are not teaching Civics either. Simply ask 10 people at random on the streets some questions about how our government is around three branches Etc when did World War II start and when did it end any thing about American history. Something very similar happened to Rome just before they collapse. The Roman government kept putting less and less silver into their coinage think inflation. One of their contemporary historians said they forgot what it meant to be Roman. When The Barbarians were at the gates of Rome they actually opened up the gates to let them in they were overextended militarily the United States has a military presence in 130 countries in the world. One more thing that historian commented about the Romans simply wanted bread and circuses. The middle class is shrinking rapidly without a middle class of people that country’s future is dismal. Who cares how wealthy this guy is did he say something true or not
This is the same problem Colombia has: it takes from the poor to give to the rich; it’s an entitlement program that funnels money from down the economic class pyramid toward the top.
It doesn’t matter who the messenger is if the message is accurate. Assigning an emotional component to that rather than digesting the message is even more irrational.
I hope Trump wins the presidency. But even if he does I think the United States days are numbered. It is not just the financial mess we’re going to face in the future but the education system has not taught Civics in the universities for years and now in high school they are not teaching Civics either. Simply ask 10 people at random on the streets some questions about how our government is around three branches Etc when did World War II start and when did it end any thing about American history. Something very similar happened to Rome just before they collapse. The Roman government kept putting less and less silver into their coinage think inflation. One of their contemporary historians said they forgot what it meant to be Roman. When The Barbarians were at the gates of Rome they actually opened up the gates to let them in they were overextended militarily the United States has a military presence in 130 countries in the world. One more thing that historian commented about the Romans simply wanted bread and circuses. The middle class is shrinking rapidly without a middle class of people that country’s future is dismal.
Perhaps the retirees with other income should have an opportunity to opt out of the pension and redirect it to those whose income is below the poverty line?
Obscene to possess so much yet to bemoan such modest aid to the elderly so in a society with so much poverty & suffering. Overcharging and under providing almost necessary services in a monopoly is honest capitalism not limited to Mexico where ilk as Peña Nieto and Salinas de Gotari simply steal their billions
Maybe he was trying to make a point. Lets talk about what he said not him.
The wealth gap in Mexico is obscene. The pension amounts to about $188/month. A pittance. Yes, maybe there should be means testing. But how about collecting more taxes from the uber wealthy in Mexico and investing the money in education and jobs programs for younger people? I think rich Mexicans, like rich folks in the US, are very good at avoiding paying their fair share in taxes.
At least half of the population in the United States pays no federal or state taxes. That’s a fact. Billionaires and millionaires paid more a percentage of their wealth in taxes than anybody else. You might say the system is rigged but that’s the way it’s been for all of history. One more thing, in 10 years our children and grandchildren will not be able to pay the interest on the national debt. Everyone in Congress knows this! Everyone’s kicking the can down the road. You want to know who’s really corrupt the government. I don’t care if they’re Democrat or Republicans. Some people think when they hear Social Security trust fund they think there’s a big pile of money somewhere that they’re going to draw on when they retire. Social Security in the United States has always been a pay-as-you-go program. But they’ve increased over the years the amount of money you will receive even if you never paid into the system. SSI. And early retirement was Social Security disability. Very few people are having children like they did when the social security system went into effect. Or they are having no children. We need people to fund the old people who are retiring now. God help us all
No fool like an old fool.
What Mexico needs is good paying jobs so that wealth can be accumulated. The best choice for those jobs is construction. Mexico needs to amend the constitution to allow lenders to finance home building. There are no mortgages as lenders have no right to repossess land or homes that are in arrears on payment. Every home is built out of cash flow. In the US, they build 2-3 million home a year. Mexico needs 50 million homes. A home has more parts to it than any other asset. Construction jobs, which Mexicans are well suited for, plus all the manufactured parts create income that can be taxed for short and long term benefits. I understand the reason for the law, but that was for circumstances that existed over 100 years ago.
That’s an interesting idea maybe a good one. I agree with the amending of the Constitution.