Mexico City

Mexico City exists because the Aztecs found an eagle devouring a serpent on an island in Lake Texcoco—and 700 years later, 22 million people live on the drained lakebed of that founding vision, sinking 50 centimeters per year into the clay that once held water.

In 1325, the Mexica people founded Tenochtitlan on an island connected to shore by causeways. By 1519, it held 200,000 residents—larger than any European city—with floating gardens (chinampas), aqueducts, and a market that astounded conquistadors. Cortés razed Tenochtitlan in 1521 and built Mexico City directly atop it, using Aztec temples as foundations for cathedrals. For 300 years, Mexico City served as capital of New Spain, governing territory from California to Guatemala. The colonial grid still defines the centro histórico; the Zócalo still occupies the Aztec ceremonial plaza.

Independence in 1821 kept Mexico City as capital. The 20th century brought explosive growth: 3 million in 1950, 9 million in 1970, 15 million in 1990. Today the Zona Metropolitana del Valle de México holds 22 million—one in six Mexicans. The city generates 17% of national GDP. Every major Mexican corporation concentrates here: América Móvil (telecoms), Grupo Bimbo (food), CEMEX (cement), Televisa (media), FEMSA (beverages). The Mexico City stock exchange trades $400 million daily.

The 2026 trajectory reveals the cost of building on a drained lakebed. The city sinks because pumping groundwater compresses the clay—some areas have dropped 10 meters in a century. The 1985 earthquake killed 10,000 because lakebed sediments amplify seismic waves. Water must be pumped uphill from 150 kilometers away. Air pollution traps in the valley's 2,240-meter elevation. Yet Mexico City keeps growing, keeps sinking, keeps commanding—because 700 years of path dependence make relocating the capital unthinkable. The eagle still perches here, even as the ground beneath it slowly disappears.