Here’s the story from Investors Business Daily.

Excerpt:

The Mexican president shut down a money-losing state-owned electrical utility, taking a labor union down with it. The union is howling, but the shutdown is one of the best things to happen to Mexico.

For months, the SME union had been trying to intimidate Felipe Calderon into continuing to subsidize the Luz y Fuerza del Centro electrical distributor, even as its $16 billion in revenue didn’t come close to its $32 billion in salaries and pension costs.

And why not? The union had done the same thing to all the other reform-minded Mexican presidents and saw all of them back off.

But it didn’t have a clue about Calderon, a former energy minister who on Sept. 24 warned the union to cut costs or else. The union ignored the warning and tried to intimidate Calderon with political tactics, whipping up fear that he intended to privatize the utility. Calderon had a better idea: shut down the utility.

The stunning decision to disband the company and lay off 44,000 workers effectively ends the SME union.

Yes, he’s a conservative.

Check out the effects:

It took just hours for Mexico’s peso to rise on news that a huge financial burden had been lifted from the government. Luz y Fuerza del Centro was a money pit that cost the government $42 billion a year in subsidies. Analysts said the shutdown would save $25 billion — enough to enable the government to scrap a planned 2% tax hike.

The improved fiscal picture will keep interest rates in place and avert a ratings downgrade. All of this increases Mexican purchasing power, helps the government finance itself and releases money for lending and investment in a new economy.

Read the whole article. He sent in troops.

It’s a proud day for Mexico. Like Canada, Mexico is on the way up. But the United States is on the way down. Canada elected a conservative, and Mexico elected a conservative. Only the United States was blind and ignorant enough to elect a radical socialist.

One other thing: I was having lunch with one of my agnostic co-workers today, who was following this story. He was concerned that Mexico would start up a new company to take the place of the old, inefficient one. But that is not the case. The Mexican government has decided to liquidate the inefficient company and pass its customers to another firm.