“IMO Mexico will come out of this better than we will in terms of feelings of loss. We’ll take a serious decline in our standard of living, given inflation and higher taxes, and that will affect national morale.”
That’s a pretty negative outlook. For the US. I think a restructuring will occur and there will be new opportunities and the clearing of deadwood. Proof that dependence on foreign entities for critical goods and resources is a bad idea will revitalize some parts of the American economy. Buy American will be as big as Make American was becoming.
I wasn’t worried about Mexico collapsing, TBH, I’m focused more on us. But remittances are a big, big part of the Mexican economy. Single largest contribution after oil, IIRC, although that may no longer be true. Don’t know. Bet a lot of them would go home now if the Mexican Army would let them, LOL.
We’ll be significantly less wealthy due to inflation and subject to much higher taxes. That will hurt every American, and Americans aren’t used to being hurt personally by events. IMO there will be 10% inflation for several years right after we come out of this. But Mexico will be pretty much the same as it is now.