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Scott Lincicome highlights concerns that a mix of higher tax rates, increased minimum wages, and more government-mandated vacation days in Mexico may be prompting smaller businesses to leave the formal sector for the informal economy.
He points to this combination of policy changes as a key factor impacting the country's business environment.
Lincicome has previously criticized rising costs tied to government policies. He has flagged the increasing expense of farm subsidies and cited a 45 percent improper payment rate in the Emergency Conservation Program as wasteful. In a separate analysis, he noted European buyers are avoiding long-term contracts for U.S. LNG, causing developer frustrations. These examples reflect his ongoing focus on the unintended effects of regulatory decisions.