- © The Jus Semper Global Alliance
A Classic Example in 2015
- Equivalent manufacturing workers in Mexico and Brazil earn only 26% and 34%, respectively, of what they should be making in order to be compensated at par with their US counterparts in terms of purchasing power,
- US Workers earn $37,71/hour whilst Mexican and Brazilian workers earn only $5,90/hour and $7,97/hour, respectively,
- Since costs of living in PPP terms in Mexico and Brazil are $0,60 and $0,61, respectively, for each $1 US dollar, equivalent Mexican and Brazilian manufacturing workers should be earning instead $22,59/hour and $23,15/hour, respectively, in order to enjoy equal purchasing power compensation,
- The difference is the wage rate gap that employers perversely keep to increase profits,
- Canada, in contrast, has a much smaller gap with its US counterparts, since its nominal wage rate ($30,94) is 79% of the equivalent wage rate ($39,09) needed to be at par, with a PPP of $1,04 per each $1 US dollar.