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Hannah Woody

Mr. Phillips

AP Language and Composition

13 December 2017

Back to Back Earthquakes Give Mexico an Astronomical Financial Burden

Double trouble shook Mexico in September, resulting in a colossal amount of financial

burden. On September 7, Mexico was struck by an 8.2 magnitude earthquake which killed over

350 people. A week after, on the anniversary of the great earthquake of 1985 that resulted in

thousands of deaths, a 7.1 magnitude earthquake hit Central Mexico, killing over 200 people

(“Why is Mexico Prone to Suffer so Many Earthquakes that are so Strong”). Both earthquakes’

epicenters were circling the state of Puebla, which is surrounded by the two poorest states in

Mexico: Chiapas and Oaxacas (Tillman) . Hundreds of buildings, bridges, and homes collapsed

across miles of central Mexico. Both earthquakes combined were the cause of over a million

fatalities and many people in search for a refuge. (“Why is Mexico Prone to Suffer so Many

Earthquakes that are so Strong”). Pieces of rubble and debris laid silent on the ground, mourning

the buildings they once were. People, were scattered throughout gardens, parks, and streets, wary

of going back to their own homes (“Why is Mexico Prone to Suffer so Many Earthquakes that

are so Strong”). The earthquakes in Mexico suffocated its citizens in financial hardship, through

the complete destruction of all the material articles important to their lives.

Due to the vast amount of destruction caused by both earthquakes, Mexico faces an

intimidating financial burden standing between it and recovery. “Subscribe to the FT to Read”

projects that the September 19 earthquake “has the potential to be one of Mexico’s costliest
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natural catastrophes” alone. One must also take into consideration that there was another

earthquake on top of the September 19 earthquake that has to be paid for as well. “Subscribe to

the FT to Read” claims that it will take over $2 billion to pay for all the damages in Mexico due

to both earthquakes. This does not include all of the personal property that was damaged. These

damages might not seem like much due to the fact that there were two earthquakes, but for

Mexico, half of whose population is under the poverty line,whom more than half of their

population is under the poverty line this is a huge financial undertaking (Rama). “Subscribe to

the FT to Read” also states that “the earthquakes could knock between 0.1 percent and 0.3

percent off Mexico’s gross domestic product,” which would put even more civilians in debt.

Luckily, the federal government granted over $635 million for natural disasters from the world

bank (Lavandera). This will only cover a little more than half of the projected cost, leaving the

rest for its citizens to cover on top of the personal damages they already have to pay for. The

combination of damages, will result in Mexico hugging the line of debt.

Mexico is a broken machine with many parts that are malfunctioning and need repairs,

but due to the lack of funds only some parts can be fixed. Out of 9,000 schools in Mexico City

alone, 676 were allowed to safely reopen. The rest were in need of repairs or needed to be

completely rebuilt, according to the Education Secretary of Mexico, Aurelio Nuno. The

education system has reserved around $95,000 for all school repairs (“The shaking earth;

Mexico”). This amount will barely cover the cost for simple repairs for the schools with less

damages, let alone rebuild all the schools that are now mere pieces of concrete. Ultimately, the

considerable amount of expenditures will dig a bigger hole of debt for Mexico.
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Not only are the school pieces of concrete, but more than half of every building and

house in the region of the earthquake was affected. According to “The shaking earth; Mexico”,

in the capital, Mexico City, around 40 buildings collapsed and even more were damaged. The

cost of damages to government buildings, most of which preside in the capital, are predicted by

“Economic Costs of Mexico’s Earthquake Could Surpass $2B” to climb to $440 million. With

the damages still lurking around from the great​ ​earthquake of 1985 most of the buildings and

homes did not stand a chance against the two recent earthquakes. “Economic Costs of Mexico’s

Earthquake Could Surpass $2B” claims that rebuilding homes alone will cost over $550 million.

The affected homes that are located in the center of Mexico City should have a steep decrease in

real estate value, but due to all the destructed houses the real estate prices should rise 5 to 10

percent according to Tillman. The increase in real estate prices might help the real estate market,

but overall makes it difficult for citizens to buy homes. This puts yet another financial burden on

those trying to look for a temporary home while also piecing back together their lives.

Although Mexico alone has many financial hardships it must endure, it is also important

to consider the individual citizens and what they are experiencing. Most have not only lost all of

their belongings, but some have lost loved ones and a place to call home as well. What is home

now? The lucky ones have minor damages- a few cracks here and there- but others have a few

pieces of rubble and broken furniture to call home (“Why is Mexico Prone to Suffer so Many

Earthquakes that are so Strong”). Whether one had a few damages or now have nothing, many

citizens must pay a personal price not covered by the government.“Economic Costs of Mexico’s

Earthquake Could Surpass $2B” claims that the government of Mexico has given the victims in

Chiapas and Oaxaca around $356 million to rebuild their personal homes. Sadly, this still will
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not cover the cost of all of their destroyed belongings. The emotional damage brought to

Mexico’s citizens combined with the financial burden is a monstrous undertake citizens will

have to face.

Many Mexicans are at a risk of becoming homeless as well as jobless. The vast majority

of central Mexico is “shut down” on account of the streets being covered with building debris

and scattered with search and rescue teams (“Why is Mexico Prone to Suffer so Many

Earthquakes that are so Strong”). Therefore, it is nearly impossible to go to work, even if it was

not affected by the earthquakes. If one cannot work, one cannot make money. This transfers an

even bigger financial burden on the Mexican citizens because if they cannot make money, how

can they be able to pay for everything that was destroyed. Mexico will not be able to rebuild all

the cities affected by the earthquakes alone. Therefore to lend a helping hand and move the

clearing process along, many random civilians would go out into the street and help clean up the

debris. They even formed a human chain said Lavandera to pass debris and supplies to and from

buildings. This will allow for a speedy clean up, but citizens are still not able to make money and

go to work due to the fact that most buildings were demolished. According to Tillman sadly,

many parts of the major cities lost power rendering them to make progress on cleaning up and

continuing. The longer the clean up process, the longer it will take for those to go back to work.

For many, the end is not in sight.

The clean up process is even longer and harder for the owners of businesses that got

destroyed. Antonio Luna said that his restaurant had to temporarily shut down and lay off three

dozen people as a result of the damages made by the earthquakes. Not only is Antonio losing

money due to the fact that he is going to have to pay for all the damages to his restaurant, but the
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workers are losing some of their only sources of income. Again, this will prevent them from

having a smooth financial recovery from the earthquakes. One business that is flourishing in

Mexico is the search and rescue team, the ones who are cleaning up the debris, and the realtors.

These are the only jobs that are useful at this moment in Mexico; most other jobs are cut off. For

most citizens they are primarily focused on finding a way out of the debris that lies before them.

Many news outlets claim the two earthquakes did not have a large economic effect

because most of the cities that were immensely effected were very poor, but they look over the

fact that all of central Mexico experienced a rough economic shift. Over 1.8 million people were

affected financially (Tillman). Many citizens lost everything if not they were affected by the

costly damages made to homes and buildings, or their jobs were put on hold due to the shutdown

of many businesses. The most impact was created in the poor cities, but more than 40 buildings

in the capital were demolished, which is where the most capital is generated in the whole country

(“Why is Mexico Prone to Suffer so Many Earthquakes that are so Strong”). Compared to

Chiapas and Oaxaca, the capital had minimal major effects, but at the end of the day any effect

on the capital causes a shockwave of problems to the whole country. One can not shut down a

large part of a country and have to rebuild half of it without experiencing at least a change in the

economy.

The earthquakes in Mexico have inordinately altered the financial sector of Mexico and

its citizens by intertwining obstacles and challenges through each sector of their lives. Today is

the day to lend a helping hand. According to Lavandera many Americans and surrounding

countries are sending medical supplies and resources to hospitals. Other organizations are raising

money through fundraisers, for example West Ham United Soccer Club raised over $36,000 to
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help 2,000 injured and families of the over 500 people that died (“West Ham donates, el/430,500

for earthquake victims in Mexico”). The best thing that anyone could do is donate money, hand

out supplies, and send trained doctors and dentist to Mexico. If the world is able to lend a helping

hand Mexico will transform into to the well oiled machine it once was.
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Works Cited

“Economic Costs of Mexico's Earthquake Could Surpass $2B.” ​Insurance Journal​, 29 Sept.

2017, ​www.insurancejournal.com/news/international/2017/09/29/465995.htm​.Accessed

29 Nov. 2017

Lavandera, Ed. “Mexico Earthquake: Searches Could Last Weeks.” ​CNN​, Cable News Network,

23 Sept. 2017,

www.cnn.com/2017/09/22/americas/mexico-earthquake-aftermath/index.html​. Accessed

29 Nov. 2017

“Por Qué México Es Proclive a Sufrir Tantos Terremotos y Tan Fuertes - BBC Mundo.” ​BBC

News​, BBC, 19 Sept. 2017, ​www.bbc.com/mundo/noticias-41201053​. Accessed 1 Dec.

2017

Rama, Anahi, and Anna Yukhananov; “Mexican Government Says Poverty Rate Rose to 46.2

Percent in 2014.” ​Reuters​, Thomson Reuters, 23 July 2015,

www.reuters.com/article/us-mexico-poverty/mexican-government-says-poverty-rate-rose

-to-46-2-percent-in-2014-idUSKCN0PX2B320150723​.Accessed 1 Dec. 2017

"The shaking earth; Mexico." ​The Economist​, 23 Sept. 2017, p. 30(US). ​Global Issues in

Context​,

link.galegroup.com/apps/doc/A505684157/GPS?u=rale84535&sid=GPS&xid=bef383a9.

Accessed 30 Nov. 2017.

Tillman, Laura. “Rocked by the Quake, Mexico's Economy Could Get a Boost from the

Rebuilding.” ​Los Angeles Times​, Los Angeles Times, 30 Sept. 2017,

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www.latimes.com/world/mexico-americas/la-fg-mexico-earthquake-economy-20170930-

story.html​. Accessed 1 Dec. 2017

“West Ham donates ,e1/430,500 for earthquake victims in Mexico." ​Egypt Today​, 30 Sept. 2017.

General OneFile​, link.galegroup.com, Accessed 29 Nov. 2017.