A Classic Example in 2018

• Equivalent manufacturing workers in Mexico and Brazil earn only 24% and 32%, respectively, of what they should be making in order to be compensated at par with their US counterparts in terms of purchasing power,
   
• US Workers earn $40,07/hour whilst Mexican and Brazilian workers earn only $5,18/hour and $8,16/hour, respectively,
   
• Since costs of living in PPP terms in Mexico and Brazil are $0,54 and $0,64, respectively, for each $1 US dollar, equivalent Mexican and Brazilian manufacturing workers should be earning instead $21,49/hour and $25,83/hour, respectively, in order to enjoy equal purchasing power compensation,
   
• The difference is the wage rate gap that employers perversely keep to increase profits,
   
• Canada, in contrast, has a much smaller gap with its US counterparts, since its nominal wage rate ($33,02) is 82% of the equivalent wage rate ($40,21) needed to be at par, with a PPP of $1,00 per each $1 US dollar.