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Salinas was an architect of the North American Free Trade Agreement (NAFTA), a pact that eliminated trade barriers between Mexico, the United States, and Canada. He championed this policy as a means to modernize Mexico, moving it away from the insular, state-controlled model of the past and integrating it into the global market. The agreement took effect shortly after he left office but was the culmination of his economic philosophy, often referred to as neoliberalism. Under his administration, industries were privatized, trade restrictions were lifted, and foreign ownership rules were relaxed. This created a wave of opportunity for multinational corporations and a new class of Mexican entrepreneurs, but it also displaced small farmers and industrial workers who were unable to compete with the influx of cheaper goods, particularly from the United States. The social contract that had existed for decades began to unravel, a fissure that contributed directly to the Zapatista uprising in Chiapas on the very day his term ended.
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At the core of Gilder's philosophy is a deep skepticism of centralized control and a fervent belief in individual initiative and free markets. He first gained national attention in the 1980s with his book "Wealth and Poverty," which became a cornerstone of Reaganomics. In it, he argued that supply-side economics, coupled with a reduction in regulatory burdens, would ignite economic growth. This perspective, which emphasizes the role of entrepreneurship and innovation over redistribution, fundamentally challenged the prevailing Keynesian consensus of the time. His arguments suggested that true prosperity is created, not distributed, a notion that resonated with policymakers and the public alike.
