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Mexico's Emergence is Now Undeniable
New Frontiers of Growth, Expansion and Opportunity
Moshe Modeira
June 04, 2024
Commerce & Capital is a weekly ode to first principles thinking, leading with integrity, learning with humility & executing with confidence.
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Hey Friends
Entrepreneurship and life design in 2024 doesn’t have the same backdrop of existential assuredness that you may have felt in 2003 or 2011 or 2017. And everyone is talking about it.
Every couple days, someone else confides privately to me that they are very perturbed by the new normal: not being able to predict the future.
The answers to what lies ahead are no longer to be found externally.
We are truly in a renaissance of self-determination. The rigid boundaries that once separated work and lifestyle are rapidly dissolving. We are now required to vigorously self-direct and architect our daily lives in ways our ancestors scarcely imagined. The nature of the modern workday is changing at a pace many are very uncomfortable with.
The historical centrality of the 9-to-5 desk job is rapidly giving way to a new paradigm of untethered optionality. There is now a rise in remote jobs, digital nomadism, freelance gig work and the necessity to cobble together a livelihood from a kaleidoscope of income streams, side hustles and passion projects.
This metamorphosis has caused a shift in our expectations around work and career trajectories. No longer are we beholden to the fantasy of ascending neatly up a rigidly defined corporate ladder, toiling loyally for decades at the same company. We are instead now collectively in a state of constant flux — an nerve-wracking dance of constantly renegotiating and re-proving our marketplace value with every new role, client, contract, or product launch.
In this freewheeling era of self-determination, we become curators of our own existence. Just as you meticulously craft the interior design of your home or optimize your living space, you now have to sculpt every aspect of your lifestyle with mindful intentionality. You must pay deliberate attention to life design.
What outfit will you wear today as an embroidered expression of your values and aesthetic ideals? What foods will you put in your body to best fuel nutritiously? What rituals of physical fitness, mental exploration and creative expression will you undertake today to nourish your mind, body, and soul?
What outfit will you wear today as an embroidered expression of your values and aesthetic ideals? What foods will you put in your body to best fuel it nutritiously? What rituals of physical fitness, mental exploration and creative expression will you undertake today to nourish your body, mind and soul?
These daily choices are the brushstrokes with which one paints the canvas of their life experiences. Over the past couple years I have had to adopt the mindset of a world-class curator, applying rigorous intentionality to every facet of my being — my professional outputs, my personal growth, my day-to-day experience.
Many of us are still in shock about how much life has changed in the last decade, and the amount of self-direction now required. Not launching your side hustles and staying shackled to the mythological "safe path" of salaried servitude is no longer possible. This new frontier of self-ownership and embracing uncertainty are terrifying a lot of people into long overdue self-reinventions.
This is no passing fad or fleeting trend. We are undeniably in the middle of a cultural shift — a tectonic upheaval where the fickle nature of modern socio-economics is harmonizing with a grassroots minimalism ethos that values experiential richness over material accumulation.
Practicing resilience in the face of impermanence, embracing self-actualization and retaining the ability to reimagine and reinvent oneself at a moment’s notice is what it means to have strength during this particular epoch in history.
A helpful mental framework I have found is that while the path ahead may feel uncertain — the clarion call of adventure is here, with new unchartered frontiers of growth, expansion and opportunity looming in front of us.
My very best,
Moshe Modeira
Editor-In-Chief
Commerce & Capital
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Thought of the Week: On Marxism’s Contradictions
“Do you realize that every time you go on about income inequality and economic class structure, about the psychopathy of capitalism, you sound like a Marxist??”, my lawyer friend bellowed at me after finding out I featured our conversation in last week’s edition.
In reality, I have consciously steered clear of Karl Marx's academic works for decades.
“Do you realize that every time you go on about income inequality and economic class structure, about the psychopathy of capitalism, you sound like a Marxist??”
The chilling history of communist brutality, the numerous nightmarish atrocities committed under the banner of Marx’s Communist philosophy has been more than enough to dissuade me from serious exploration of Marx’s work over the years. I reduced them in my mind to nothing more than dusty old books filled with myopic screeds, anxious economic critique, blueprints for societal collapse.
I changed that this week after the conversation with my friend. The time had come to finally grapple with Das Kapital and the Communist Manifesto.
The intellectual experience of revisiting the works of the infamous economist has been one of profound, emotionally confounding ambivalence.
I braced myself for a nightmarish descent into a world of soulless, ranty, collectivist propaganda, only to be met with something else entirely unexpected: coherence.
Lucidity.
Dare I say it — an analysis of modern capitalist economics that sparkles with chilling accuracy.
Marx's foundational works are undeniably dense and challenging, wielding seismic arguments with systematic precision.
The thunderous prose of the two books I chose as a re-introduction to Marx need to be, first and foremost, mentally placed into the context of the times in which they were written. Marxian theory is an effusive intellectual attack on the capitalist power structures that dominated 19th century Europe.
Beneath the fiery revolutionary spirit lies a meticulously crafted examination of economic materialism. Marxism is a principled dissection of the relationship between labor and capital, and the inherent contradictions in value that emerge when industry and economy is controlled by an oligopolistic elite.
Marx argues that capitalism, by its very nature, sows the seeds of its own destruction. This destruction comes through the continual impoverishment and immiseration of the working masses. In our contemporary era of staggering wealth disparities, this core critique continues to resonate with an undeniable truth.
Exploitation of the many to enrich a privileged few has been a feature of human economies long predating Marx, and persists to this day in new forms. Marx’s observations about the inherent tension between the accumulation of private capital and the well-being of the public foreshadowed the consolidations of corporate power that we are now witnessing in the 2020s.
There are some profound moments of reflection even amidst Marx's most polemical passages. The sheer prescience and applicability of certain Marxist concepts — observations about how economic value is created and distributed — coheres perfectly to our 21st-century reality.
I remember specifically the idea of commodity fetishism (attaching idolatrous value to products and commercial objects, beyond their raw use value) was a Marxian concept that caught my attention the moment I encountered it because it seemed to curry with marketing and advertising reality.
The increasing intangibility of human labor and consumer output in the future is another prescient idea that Marx touches upon in his writings.
Marx's core observations — that the machinations of power structures prioritize the growth of capital over human needs — are not irrelevant. This theoretical lens, when applied with a discerning eye and a nuanced understanding, can illuminate some of the social and economic imbalances that plague our modern economy, allowing us opportunity to amend them.
Marx famously created an early construct of “Main Street vs Wall Street”, often extolling about the oppressive conditions endured by the proletariat — the working class — at the hands of the rich and wealthy bourgeois economic elite.
It can be argued that Marx’s oppressor vs oppressed paradigm is an argument from a time of monstrous socio-economic divide, a time that saw little to no middle class life or comforts available to the masses, thus the application of this paradigm to modern analysis should be contextualized cautiously.
Conversely, the mounting evidence of the rapid erosion of the middle class and growing economic disparities within modern societies warrant navigation and investigation of these tensions with honesty, confronting corrupt power structures where possible, while patiently working towards erecting a system that functions more equitably for more people.
I personally can’t turn a blind eye to the horrific human cost exacted by regimes in modern history that have claimed allegiance to Marxist ideology. From the ghastly pogroms and gulags of Joseph Stalin's Soviet Union, to the nightmarish killing fields overseen by the Khmer Rouge in Cambodia, the practical application of communist central planning has historically always devolved into a soulless, dehumanizing, deadly approach to productivity and socio-economic organization.
I personally can’t turn a blind eye to the horrific human cost exacted by regimes in modern history that have claimed allegiance to Marxist ideology.
It’s however possible to embrace some of the most valuable insights from Marx's critique of capitalism while rejecting the monstrous, inhumane politics of his most fervent followers. Marx’s philosophy, tragically flawed in its execution it became thereafter, at its original core was clearly meant to elevate and liberate the human spirit.
Marxism’s core humanist sentiment is the idea that economic systems should serve us, not subjugate us. I would say this is a sentiment shared in the philosophical DNA of the oft-declared father of modern capitalism — Adam Smith.
Adam Smith's Moral Capitalism is far more honest, humane, realistic and principled than Karl Marx’s Relativist Communism
There are positive aspects of Marx's critique of capitalism. His analysis did shed light on real issues of labor exploitation, inequality, and the tendency of capital to concentrate in the hands of a privileged few. However, I would argue that Adam Smith's vision of moral capitalism, when understood and implemented properly, provides a more humane, ethical, and sustainable framework than Marxism.
Smith was not an advocate for unbridled greed or the oppression of workers. As we explored last week, his moral philosophy emphasized empathy, ethical restraint, the need for the self-interest of individuals to be tempered by free competition, always ballasting towards considerations for the greater good of society. Smith believed that economic actions should not be solely motivated by the accumulation of wealth but guided by moral sentiments.
The core problem is not capitalism itself, but the distortion and bastardization of Smith's original principles, especially in modern times. Well-regulated capitalist economies with robust social safety nets / policies to promote economic mobility can address issues of inequality and exploitation more effectively than any centrally planned command economy. However, the rise of crony capitalism, blatant elitism, monopolistic practices and wanton disregard for ethical conduct have led to the systemic imbalances and injustices that Smith — and Marx — so vehemently criticized.
Rather than discarding capitalism altogether, the solution lies in a return to the moral foundations upon which Smith's capitalist vision was built.
By fostering true competition, honestly ensuring a level playing field, and instilling a sense of civic responsibility amongst all stakeholders and economic actors, we can harness the dynamism and innovation of free markets while disincentivizing corruption and negative excesses.
Commerce & Capital: The Mexico Edition
What does the future hold for Claudia Sheinbaum’s Mexico?
A new economic power is blossoming in our southern regions - a renaissance catalyzed by political stability, rising prosperity, and an embracing of globalized opportunity: Mexico
The old reputations attached to Mexico are rapidly becoming distant memories. The country is now an ascendant nation firmly establishing itself as a premier tourism, lifestyle and investment destination.
This week’s presidential election has ushered in a truly groundbreaking chapter, with Claudia Sheinbaum's historic victory. Sheinbaum is the first woman to ascend to Mexico's highest office, and her Jewish heritage strikes a powerful chord in highlighting the nation's diversity and inclusiveness despite being a majority Catholic country.
Claudia Sheinbaum
Sheinbaum, the anointed protege of outgoing President Andrés Manuel López Obrador (AMLO), garnered a staggering 60% of the popular vote in a decisive win. Her sober political vision — rooted in fiscal pragmatism, sustainable development initiatives, and a commitment to root out some of the systemic inequalities that have long plagued the country — promises a steady course forward for Mexican prosperity.
Under the stewardship of AMLO, the MORENA party over the past five years has guided the Mexican economy to great resilience and growth in key sectors. The once-festooned peso is gaining notice and recognition. It’s relative strength against the US$ has now positioned the peso (MXN$) as one of the world's more vigorous emerging market currencies.
This revitalization has not gone unnoticed by the international community. Business professionals, entrepreneurs, founders, investors and families from across the globe are flocking to Mexico in droves.
Data is showing that there are unprecedented opportunities to stake claims in Mexico's revitalized economy. There are ambitious infrastructure projects that demand capital investment and entrepreneurial ingenuity, there are largely untapped real estate markets ripe for development, and there are numerous wealth-creation prospects abound for anyone visionary enough to create local partnerships, manufacture and provide products and services for the country of approximately 130 million people.
The blossoming of Mexican economic fortunes extends far beyond the obvious sectors. A budding, dynamic start-up ecosystem is taking root across the republic, positioning cities such as Guadalajara and Mexico City as the new Silicon Valley of the South. Local and international venture capitalists are clambering to capitalize, funding disruptive new companies across industries like fintech, real estate, biotech and AI.
Mexico is one of the biggest suppliers of export products in about half of the United States. Mexico holds free trade agreements with approximately 50 countries.
Chinese companies have began investing in Mexico to take advantage of the North American trade deal, allowing them to label products as “Hecho en Mexico”(Made in Mexico) and trucked into the US duty-free. This growing trend, known as nearshoring, is seeing global companies establish operations in Mexico as another access point to better supply the North American market with products and goods.
We are seeing wealth managers and family offices realigning portfolios to increase Mexican exposure — not just in equities, but across asset classes like private equity, real estate, commodities, and credit instruments. In the coming weeks, we will feature some interviews showcasing opportunities for entrepreneurship and investment in the burgeoning Mexican economy.
CTA: Tip your hat to the great Mexican renaissance
An era of collaboration, cohesion and prosperity seemingly lies ahead for the Americas. Mexico is emerging as a leader in the hemisphere. There are economic opportunities abound that can feed your entrepreneurial visions — are you already making plans to connect, as an entrepreneur or investor, with Mexico, Latin America, the Caribbean and South America? Let us know what you’re up to in the comments section below 🙏
Trending Now
What You Need To Know About Claudia Sheinbaum's Victory In Mexico's Presidential Election - Forbes Breaking News: Extended coverage of Claudia Sheinbaum’s historic win as the commander-in-chief of country of Mexico, whose relationship to Canada and the United States over the next six years of her administration will become mission critical to hemispheric prosperity. There is a lot to learn about the new Mexican president, including how her political views, voting history, personal outlook and life experiences will guide her governance.
Just nasty, tbh: Hockey has long been a mesmerizing sport to me, since I was a child. I’m a fan of the National Hockey League (NHL). Many fellow fans can appreciate the fact that, for the first time ever, the face of the sport Connor McDavid will get the chance to compete for a championship. Anyone who enjoys sports and competition can surely appreciate the beauty and art of this goal he scored in the series-clinching game of the Western Conference Finals, propelling Edmonton into the Stanley Cup Final where they will face the Florida Panthers. It’s one of the finest you will ever see.
Just nasty, tbh 😤
— Edmonton Oilers (@EdmontonOilers)
12:25 AM • Jun 3, 2024
📚 Book Shelf
An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith. Especially after re-discovering Smith original morality for capitalism more closely aligns with my own empathetic, humanist outlook, at a moment where I have deep moral questions about the excesses of modern capitalism, that we are witnessing, a combination of last week’s conversation with my lawyer friend — and also being challenged by a colleague who maintains that “maybe 100 people on planet Earth today have truly read and internalized Adam Smith’s teachings” — has me answering the bell and expanding my knowledge by deep-diving into Smith’s seminal work.
Slow Productivity by Cal Newport. Our typical cultural definition of “productivity” treats busyness, lengthy to-do-lists and a calendar full of meetings as the ultimate benchmarks of a successful entrepreneurial life. Author Cal Newport shares wisdom from some of history’s most impactful philosophers, scientists, artists, and writers — such as Galileo, Isaac Newton, Jane Austen and Georgia O’Keefe — in order to outline his call for “slow productivity,” a more sustainable alternative and rethinking of workload management and performance quality being adopted by a new wave of makers and entrepreneurs.
The End of the World is Just the Beginning by Peter Zeihan. After following geopolitical commentator and strategist Peter Zeihan for years, I warn that his work is not for the feint of heart. It also features a centralization of American interests that can off-putting to more globally-focused analysts. Zeihan has been making a name for himself over the last couple decades with his frank observations of political machinations, trade trends and patterns and geographical anomalies that impact outcomes for populations. Zeihan ambitiously attempts to map out the blueprint of the global order over the coming decades — a more localized world where countries will be less dependent on the political hegemon that has been the United States, and will now have no choice but to produce their own goods, grow their own food, secure their own energy and defend their own borders while catering to aging populations.
📰 Articles
As China’s Internet Disappears, ‘We Lose Parts of Our Collective Memory’ - New York Times: I have been loud in my defence of China, especially with regards to the TikTok ban and the pockets of anti-Chinese xenophobia that flare into cultural discourse in the West, but in this instance I will speak frankly in my criticism of China. Everyone should read this piece in the New York Times. China’s government still largely appears to be under the impression that it needs to centrally control the mindset and outcomes of its billions of citizens, and nothing is more nefarious than it’s insisted stranglehold over the internet. I am a big believer in an open and free internet just as I believe in an open and accessible media. Erasing and altering years and decades of information in a bid to have citizens “forget” history and timelines is tantamount to cultural erasure and only serves to stoke the fires of oppression and corruption.
Would love to hear your thoughts on this week’s edition! Leave your comments below. See y’all next week 🙏
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