Social and political violence in Mexico makes business interests more receptive to social welfare spending. This paper presents survey experiment results from Mexican business owners and operators showing increased support for anti-poverty measures tied to institutional weakness, while decreasing preference for tax cuts.
Data & Methods: Survey responses from 603 business leaders across Mexico were analyzed alongside textual data.
This connection stems from businesses viewing social welfare spending as a tool against violence's impact on consumer markets; some even endorse welfare-enhancing taxes.
However, violence also introduces operational costs in labor markets.
- Dual Impact: Increased market stability but higher labor expenses.
Key Implication: These findings challenge the assumption that businesses universally oppose government spending and support tax cuts.
