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Mexico's future president Andres Obrador is leading by example in his country's austerity drive. He will take less than half the salary of the current president. He wants to help get Mexico's economy back on track. Mr Obrador told reporters: "What we want is for the budget to reach everybody." This means he will take home a salary that is just 40 per cent of the salary currently earned by Mexico's current president, Enrique Peña Nieto. In addition, Mr Obrador said no public official would be able to earn more than he will earn. His supporters greatly welcomed his new measures.
Mr Obrador wanted to cut his salary further but stopped at 60 per cent. He thought a bigger cut would reduce the quality of people joining his government. Many are coming from the private sector to take up government jobs. Obrador said he would keep his campaign promise to reduce perks given to high-level government officials. He will cut back on chauffeurs, bodyguards and health insurance for ministers. He will also turn the official presidential residence into a cultural center and stop pension payments to former presidents.
Back to the pay cuts lesson.