Mexican Economies
Learn more about the economic history of Mexico from precolonial times to the modern day.
Traditional Economies of Mexico
Mexico’s economic history stretches back over 4,000 years, before the development of farming and pottery. With staple crops of corn, squash, and beans, these early people began clustering into villages and towns. Over thousands of years, these grew into the major empires and city-states of Mesoamerica. Centers like Tikal, Teotihuacan, and Tenochtitlan supported complex societies and advanced trade routes. Most relied on farming, but they also traded with neighbors for valuable items. Rulers claimed tribute from their subjects in the form of food and luxury goods. In the Aztec era, prized goods included cacao, gold, silver, jade, obsidian, cotton, feathers, and turquoise.
Spanish Colonialism in Mexico
The immense wealth of the Aztecs, concentrated in Tenochtitlan, became a prime target for Spanish invaders. In 1519, Hernan Cortes’ expedition to the city ended with burning and looting. He sent back much of the Aztec’s treasure to be melted down in Spain. The colony of New Spain continued to enrich the Spanish Crown through prolific silver mines. Power at this time rested with Spanish officials and their descendants. Both men and women controlled whole populations of native people under the encomienda system. Similar to feudalism, landowners grew wealthy off the labor of peasant farmers and ranchers. Although technically free, those forced into labor faced violent punishment if they refused to work.
Economics of Independent Mexico
This dynamic changed in 1810, when Mexico declared its independence from Spain. Over the next 11 years, Spanish officials destroyed many of the silver mines as they retreated back to Spain. They left behind an independent nation, but one with few major industries. Mexico reverted to a mostly rural society through the 19th century. Stability came briefly under President José de la Cruz Porfirio Díaz. His reign brought modern industry to the country, but it benefited the rich far more than the poor. His dictatorship ended with the Mexican Revolution from 1910-1920. The Revolution sought to provide relief for Mexico's lower classes. It split the haciendas' land among the public and increased workers' rights to organize.
The Modern Economy of Mexico
World War II brought new economic opportunity to Mexico and it people. The United States diverted much of its resources and workforce to the war effort. As a result, it suffered severe labor shortages. Besides sending soldiers to the front, Mexico sent a small army of farmers to the fields of the United States. Its mining industry provided materials for wartime production. Postwar Mexico built a strong economy based on mining, agriculture, and manufacturing. From the 1970s on, high inflation, low investment, and periodic market collapses repeatedly stifled growth. Modern Mexico is the 15th largest economy in the world. Its society is still marked by high wealth inequality between urban elites and the rural and working-class poor.
References
Aguilar-Moreno, Manuel. Handbook to Life in the Aztec World. Oxford University Press. 2006.
Beezley, William. The Oxford History of Mexico. Oxford University Press. 2010.
Foster, Lynn. Handbook to Life in the Ancient Maya World. Oxford University Press. 2002.
Koch, Peter. The Aztecs, the Conquistadors, and the Making of Mexican Culture. McFarland & Co. 2006.
Long-Solis, Janet and Luis Alberto Vargas. Food Culture in Mexico. Greenwood Press. 2005.
Ruiz, Ramon Eduardo. Triumphs and Tragedy: A History of the Mexican People. W. W. Norton & Company. 1993.
“The World Factbook: Mexico.” Central Intelligence Agency, Central Intelligence Agency, 7 June 2018, www.cia.gov/library/publications/the-world-factbook/geos/mx.html.
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