Why are the United States and Mexico both democratic federalism, but they are so far apart?

The gap between Latin America and the United States is that a good wealth regeneration system has not been formed. To put it more mainstream, it is the lack of a sustainable development ability in wealth accumulation.

Give a simple example to illustrate this difference.

The first case:

Suppose a gold mine is discovered in a place, and a person comes to invest in mining, and employs 100 workers to find gold for him, with an annual profit of 6,543,800+million. The mine owner pays 50% of them as workers' wages, and each worker earns 50 thousand yuan a year. They use 1 10,000 to rent a house, and the remaining 40,000 can get married, have children and start a family. The mine owner still has 5 million in his hand, which can be used for investment. Because workers have money in their hands and want to settle down, there is a demand for houses. So the mine owner built a house with the money in his hand, rented it to workers, or sold it to workers. If workers want to eat and drink, they will open restaurants and earn their money back. Opening a restaurant requires hiring other workers, so workers' wives have employment opportunities and income. The consumption demand of a family is even greater. In this way, a few years later, there were 100 families in this place. Children have to study and have educational needs, so some people come to run schools, workers have to date, spend money and do other things, so there are cinemas and shops. In this way, 50 years later, when the mines in this place are almost dug, it has become a prosperous city with a population of about 654.38+10,000.

The second situation is this:

Suppose a gold mine has also been discovered, and someone comes to invest in mining, employing workers 100, and making a profit of 100000 a year, but the mine owner pays 10% of them as wages, and each worker makes a profit of100000 a year. The money is only enough for them to barely fill their stomachs. They have no money to rent a house or marry a daughter-in-law, so they can only live in shacks. The mine owner earned 9 million yuan a year, but you see that they are all poor, so there is no need to reinvest in the local area. So, he transferred his money abroad because it was not safe at home. He built several luxury villas and hired several workers as bodyguards. Workers have no future and have no other needs except working hard to make a living. The only possibility is to try to trick his wife into having a beautiful daughter, and perhaps marry the mine owner as his wife. Fifty years later, this place has no other industries except luxury villas. After the mine was finished, the mine owner left with a huge sum of money, and the workers were either in exile or male thieves and female prostitutes.

A very simple example is actually the different development trajectories of Latin America and the United States. Perhaps today, Americans should say thanks to Washington, who created the most modern and scientific political system for the United States, and to Henry Ford, who created the American middle class. On the other hand, Latin American countries are not so lucky. Their great dictator created a predatory economic system, madly divided up social wealth with a tyrannical attitude, and the whole economy collapsed and could not develop any more.

Here we need to mention Henry Ford again. Among all the business figures at home and abroad, Henry Ford's influence on social economy is unparalleled. It was he who created the initial middle class with his Model T car and introduced American society into modern society for the first time (Europe is decades behind the United States in this respect). Henry Ford said that I hope my workers can afford my Model T, so he paid them a high salary. He also created an assembly line production model, which greatly reduced the number of cars. As a result, Ford became the largest automobile company, and rich workers could buy cars and houses, and the middle class was born. So after the western expansion was completed, the United States discovered another gold mine, and there was no room for manoeuvre in this territory. The rapidly growing middle class has stimulated huge demand, supported the huge domestic market and continued to promote rapid economic growth.