Argentines had become incredibly addicted to handouts and this is the hangover when the debt collector comes by
7
(in a sing-song voice) "The cir-cle..of liife!"
The circle of life is that as long as humans stay stupider than Jupiter, they will opt for dictators to lead them. It is tiring that the Left only has reporters to tell us that there is a fire. All useless Left wingers don't get it. They don't get that Step 1 is to win. The Dictators' entire focus is on Step 1 so they always win.
7
The fractional reserve system was set up to destroy countries like Argentina. Inside the article, "...Argentina was forced to secure a $57 billion RESCUE (emphases is mine) from the International Monetary Fund, (whom I call Evil Incarnate). Notice the word "rescue" should be replaced with "prison sentence." For all of us to get off of IMF money is important, but to do so in a way that saves people and communities, but kills the IMF. That is the challenge. We need to turn world economics upside down to get "ill-gotten gains" out of our governments or else we will always have this poverty and scarcity. We need education around economics for everyone, all over the world, by the age of 18. The economic education has to elucidate the problems with our current system (something those benefiting from don't want to have happen) and we need to keep private power influences from corrupting our public governing systems. Governing is about allowing people to have lives. Capitalism is about profiting off of those lives. When you take governance away, you create slavery. All living become slaves to those with money and power. That is why we are seeing the dissolution of our governments right before our eyes. Look at America. Those with the money and the power don't want governance, or democracy. They only want the appearance of those things while they rob and pilfer our public coffers.
17
The way reality presents today, recovery seems to be an impossible dream: you can improve the standards of one, but then Mr. Velázquez and Mrs. Pereyra will bring seven more into the world. Multiply by all the Velázquez and Pereyras of Argentina, actually of all around the world, and there you go..., it looks more like the beginning of the end.
10
1 person's good luck is another person's misfortune. If the peso has been devalued, that signifies to ABH, a "profane" in terms of economics, that the dollar will be worth twice at least what it was not worth in my last venture there, 2016 when, with a grant from Hoover, to which I had already donated primary source material on the Organisation Armee Secrete(See OAC)I interviewed survivors of the "Guerra Sucia(Dirty War)including former soldiers in the Infanteria de la Marina who had participated in round ups of "subversivos"as well as their relatives, otherwise said, victimizers and victims of the 3 juntas. But "revenons aux moutons:"I was present in Argentina last time there was a devaluation in 2002--watch my video,"Hilda and Tina,"at which time u could have a 3 course meal for grosso modo, with a carafe of wine for a dollar and a half, and a hamburger, "mit onions or mitout,"in words of Peter De Vries, for less than a quarter.Macri is like Macron: a tool of the rich
; Economic austerity for everyone else except him and his friends. Recall interviews with "soldados conscriptos"still waiting for recognition for their military service in the war, and camped out in the Plaza de Mayo, some w/o legs, others still suffering from frostbite, result of war in South Atlantic, Recall 1, Rene Robert with his dog, whom he calls Christina,but also missing 1 leg. But they don't complain, there is no whininess. They simply want what's coming to them.
2
Could you *please* stop using the word populism? It is just a mental shortcut, a derogatory term used to diminish the merits of a democratically elected government.
17
"Populism," how quaint it is that we have a new word for caring about people at the bottom of the ladder, like it is unique. But, unfortunately by those who could actually make a difference for them, it is. I don't know which is worst, greed or bigotry that prevents it, but it must end. Argentinians sifting through garbage or Puerto Ricans not having electricity from the effects of storms long past. The corruption is world wide and we are sick of it. It is time for an old word.
9
South America continues to lurch from one economic crisis to the next. Fueled by liberation theology and Marxist tendencies, the continent and counties like Argentina will continue to experience these economic upheavals until their citizens enforce change for the better. Peronism though is not a viable long term solution.
5
The so called populism it’s Keynes capitalism. During Kirchner’s years the economy grew and the income was more equally distributed. The corruption cases linked to Cristina Kirchner (CFK) where not very credible and now we now that most of them where carried out by judges and attorneys out of law linked to Macri’s government. They exchanged favors (liberty or money) to testify against CFK. The head of Justice department is one of the accused to made this happen. The most important news media where also involved on this. The “Lawfare” in full action.
The awful economic situation, the cut in education, science and technology and the increasing understanding that CFK was illegally accused is the engine that put her closer to re asume. Almost all the society was better and happier during the Kirchner’s years. Only Banks, energy companies and businesses owned by Macri’s friends and family are better now than then. The corruption, even hidden by media, is very high and involves the government. Panama Papers and many other cases are a big shadow over the transparency they supposedly represent.
6
Typical greed and corruption ...both neoliberalisma and populism are based on these twin pillars.
A rational New Deal is needed. Training, education, health and hard work to create a better country, a better backbone for the country. Yes, and collect the taxes and punish the guilty.
2
Populism or neoliberalism. A false choice.
A government for the people. Think New Deal and what that did for the US and the world!
5
It’s hard to imagine any discussion of current economics in Argentina without understanding the Vulture funds. After negotiating settlements with all other creditors, a portion of defaulted loans were purchased at rock bottom prices by opportunists who then became the only creditors who refused to negotiate. Americans and the American courts played a big role in the ongoing economic disaster.
The article below tells the story better than I could.
https://www.counterpunch.org/2016/03/16/argentina-and-the-vultures-the-political-economy-of-the-settlement/
4
Pictures, whilst OK visually, are TOO DARK. (It seems to be becoming a bit of a 'mode'). Please, expose for the midtones and let us see what is going on...
4
The author leaves out some important details behind the current economic situation in Argentina.
When the country defaulted on debt in 2002, after defying the IMF restructuring plan, Argentina was able to come to agreements with almost all creditors.
However, some debt, had been sold at bargain basement prices to new creditors who refused to deal. With the support of a questionable American court decision by Judge Thomas Griesa, of the Federal District court for the Southern District of New York, all negotiated Argentine payments for 93% of the country’s debt were frozen in 2014 to satisfy the demands of the Vultures. It was like having your rent, utilities, and grocery bill payments stopped by the bank because you didn't pay your credit card bill.
The IMF, the other creditors, everyone was against it, and the decision threw the Argentina economy into unnecessary chaos.
“Griesa’s unprecedented decision to take 93 percent of Argentina’s creditors hostage on behalf of the vulture funds was obviously political at the time. Now he has admitted it, to the chagrin of our legal system.”
https://www.counterpunch.org/2016/03/16/argentina-and-the-vultures-the-political-economy-of-the-settlement/
10
When acknowledging what and why several countries around the world are living in dire conditions, it appears that the citizens have the same dynamic toward “what the power should look like” and who should not be involved in the administration of their country, requiring action to prevent even worst consequences.
It is quite clear that USA and its populism, among others, direct citizens to vote for anybody who is not connected to the so called “politicians of the past” whom have brought them into mayhem and despair.
As Trumps “protectionism” will only get USA apart from the entire planet, at least from countries with people being able to afford what USA is producing. The other will prefer to turn their back against USA as it is already the case and the way they have been acting in several countries in the pas century.
They are already looking at other means of doing business with people that do not think and act as crooks.
Though the economy is going great don’t guarantee what it will look like in five years. As fast the market indexes are going up, as fast they will be brought down.
2008 was only a repetition of what lies ahead. Citizens will loose their jobs at a unprecedented speed and numbers... and then what ?
We have entered an at least two to three decades of civil unrest, violence and most probably a broader number of criminal activities which will lead the country into a civil wars like it did happen in many countries.
This could be the fate of the USA eventually, if the younger voters of today insist upon a Social Democrat Congress and President! They think most everything should be free or heavily subsidized by the state, but with low taxes for them by taxing the rich which means anyone with a stable, tax-paying job and mortgage!
5
Comparing the US to Argentina is incredibly uninformed. Argentina does not have the economic infrastructure to support an expansion of large scale social welfare program, the US does.
6
Back in the mid 90s I was in the Peace Corps in Paraguay. Sometimes when we had a week of vacation, we would travel through Aregintina. I remember when I was in a taxi in Buenos Aires going to the airport with a friend. During this time an Aregintine peso was equal to $1 USD. The airport is 50 Mike's from downtown. The taxi driver was complaining how expensive thing where. He stated "I cannot even buy a hot dog and coca cola for his mom" because it was so expensive. I said "Don't worry, God will one day change everything"! He laughed and replied "My friend, do you know why God cannot change anything?" I hesitated for a moment to ask, why? The taxi driver laughingly exclaimed "The reason why nothing changes in Aregintina is because God is Aregintine also!"
3
Argentina has defaulted eight times in its sovereign debt.
They continue to spend well above their means.
They have a bloated public sector with almost four million employees, almost ten percent of the whole population.
There are seven million pensioners, many of whom have never pay a single penny in the system.
Only nine million workers are employed in the private sector.
The problem mis not capitalism.
As Margaret Thatcher's once said, the problem in Argentina begun when they ran out of other people's money.
8
Lessons from Brazil's Lula could be followed and the erradication of misery would be solved. But Macri's know-how is insufficient. It will never get recuperation that never came nor the jobs that do not came equally. These jobs will not come, at least while endure neoliberal agenda.
2
@ciclamio The neoliberal agenda is capitalism running amok.
2
There is an article today in the NYT where once again our politicians don’t do there homework to successfully efficiently perform there jobs. Noble ideas but poor implementation Politicians talk but don’t take Unemployment in rural areas or any area seriously . Joe Manchin whose job is to help West Virginia allowed a fake tech company set up shop in the pretend world to save West Virginia and bring hope prosperity ie jobs. People were lied to and no jobs just like fake Trumps college.
Overseas we are writing again about how poor people do without while the rich politicians get richer and international corporate America Wall Street (remember Greece your pension plan means nothing )reaps the financial rewards of the desperation of countries who are in dark days,
We have created the monetary issues that are the foundations for economic disparities across the world which can ultimately lead to the downfall of the human race.
It’s not to late to use character , morality to stem the tide of economic woes , we know the history we have the actual facts. Let’s get it right after decades of economic enslavement the world is waiting and like climate change no do overs
8
Treating the symptoms of economic malaise will never come close to a cure. We are overdue for a re-evaluation of the most fundamental truth: we grow populations faster than we grow economies. The suffering of surplus workers in need of gainful employment will never end until we stop producing more people than we can care for. It's that simple.
7
Back in the 70's when I worked in Latin America there was a saying amongst my latin colleagues, " the future of Latin America will forever be in the future". Meaning there is little economic nor financial discipline. Boom or bust.
Soon the U.S. will find itself in a similar place as we make promises of a worry and work free life for all.
6
Argentina, like many other small countries, is stuck in the trap of dependence upon overseas credit, first pounds sterling and now dollars.
Argentines can pretend to lend to themselves but are unable to offer credit that is acceptable overseas. This makes it difficult for them to import luxury goods, machinery, technology ... or fuel (Peak Oil occurred in that country in 2003). Now Argentina 'earns' dollars by selling its food crops and other resource products at a discount to the Chinese, benefiting brokers and other middlemen and Wall Street banks - at a remove.
As Argentina strives to industrialize it borrows to develop then borrows more to retire and service prior round of loans. If industry produced any gains on its own Argentina would be rich! Instead, the IMF loan is the latest in the cycle of desperate borrowings, defaults, bailouts and more loans. Because the Central Bank of Argentina offers unsecured loans it is effectively insolvent. This means a more-or-less continuous run out of the peso which takes the form of inflation.
Argentina's population has mushroomed from 17 million in 1950 to 45 million today: the notion that additional warm bodies by themselves are foundation of prosperity is refuted by unfolding events in that country.
For 100 years, Argentina has tried mightily to industrialize and has failed, auctioning off bits and pieces of itself in the process. Now, the country is bankrupt. Best for the country to cut its losses, population & imports.
8
@steve from virginia Forty-four million people is not a small country; it's on the same magnitude as France. Geographically, Argentina is bigger than most of Europe.
Argentina has had strong industry and agriculture, but the country suffers under the weight of its public sector, which is out of proportion to the economy as a whole. On top of that, the populist policies of past administrations have not been encouraging to internal or external capital investment, resulting in little economic growth. Cutting population will only result in less growth, e.g. Detroit.
4
After reading the article and then the very astute, educated comments, I wonder if this report was a scare tactic to dissuade us from left-leaning policies here in the United States, and to remain with middle of the road politicians. I wonder if that’s really the way to go, when we need radical change if we want to save the earth.
9
@Michelle. Scare tactics aren’t needed. The corruption and colossal ineptitude of leftist governments in Latin America are scary enough for accurate and sober reporting to serve as a warning of the miserable economic outcome. Unfortunately many Americans, seeing themselves as the center of the world, have little knowledge of the history of other countries, and naively look upon populist socialism propagated domestically today as new ideas of optimism instead of tried and true recipes of failure.
8
@Michelle
socialism is needed to humanize deregulated capitalism running amok.
3
It is predictable that Kirchner will win the next election. Populism created or perpetuated the economic mess, and Macri was foolish enough to inherit the mess and be blamed for trying to restore some economic order. It's hard to be on the wrong end of the spend-save cycle. Of course in the US, we have a spend-spend cycle, for now, only the beneficiaries are different depending on which party is in power.
4
To deliver an overall output and interest of this article in a more compelling view, author needed to include ALL major industries (other then mammoth agr.) they rely on...with the state of EACH one's market condition. Realize tourism, Malbec wine, textiles aren't most of it...but what else...
CHINA - author's talk needed to include privatization....BIG China's raging appetite in buying up South Am assets, private and public...especially gas/oil infrastructure/processing, agriculture, meat/cattle, also the pollution/carbon factor and how the environmental/climate issues are directly relating to the economic malaise...this author covered way too much on the families....not enough on the root of the causes, business/commercial, geopolitical, etc...
8
What I've noticed comparing the crisis in S America is that a pattern exists: run away socialist gov trying to solve poverty, huge debts, massive loans that go to infrastructure of vital commodities, inability to repay, then confiscation--read privatization---of the commodity. Viola! Privatization of water, electric and the primary export commodity.
4
@katesisco,
because adding a profit incentive always makes something affordable, at least to the profiteers.
2
Abandoning the profit motive always ensures the vast majority will be poor and a few will be very wealthy, usually by pointing guns at the poor.
6
@Once From Rome.
re: " Privatization of water, electric ..."
For services without which life would not be possible today, privatization is NOT a solution.
3
I lived 50 years in Argentina and 10 in the US. In Argentina everything is free, Education is free, I am a doctor I did not pay 1 peso for my education, I am Oncologist, all the oncology treatments are free in Argentina. Lately some populist politicians said to criticize the eliminations of subsidies that gas and electricity should be free also like air and water, we always have spent more and saved less. It is an impossible equation. I hope populism and corruption ar not going back and a more rational and solidary government with a wide consensus put new bases to move Argentina forward and not to the past.
14
I’m also a physician who grew up in Argentina. All those things you name are not “free”. They have costs that someone or some entity is covering. The people have been given unaffordable freebies that became entitlements. Argentina may be rich, but it is not socially responsible for those services to be paid for at all costs.
19
@Daniel B
Those are not entitlements, bur rather investments in your country's future.You earn a living because someone invested in you. Paying taxes is your opportunity to pay that forward.
2
The origins of the perennial crises of Argentina is Peronism (the Argentinian version of populism). Juan Peron used the revenues from the sale of grain (largely the most important export of Argentina) from 1946-1948 to build his populist Party. Since then, Peronism is the main ideology in Argentina not only among Peronists but also among “anti-Peronists”. The motto of this ideology is “The Federal Government must provide for us”.
There is an important lesson to learn about the importance of the electoral versus popular vote. More than 30% of the population live in Greater Buenos Aires, the stronghold of Peronism. In Argentina, the president is chosen by popular vote. The Kirchner’s strategy to give almost free electricity and other services at the expenses of people producing the two main exports of Argentina (grains and cow meat) is shrewd. She got their votes in spite of the wide corruption and incompetence of her government. Likewise, the inability of the current president (Macri), to fight off the Peronist ideology of Argentinians explains the economic crisis: most Argentinians do not understand that people can’t live above their economic possibilities because “The Federal Government must provide for us”.
20
@Osvaldo. I don’t see how this can be true. Everybody I met in Argentina last month complained that Argentinians don’t work hard and that there isn’t enough money to subsidize them. Nobody proposed a solution. I was told that an election is coming up and people think that neither side has a solution. Immigrants from Colombia and Venezuela were said to do a better job of hustling.
1
@Osvaldo:Spent over a year interviewing "soldados conscriptos,"veterans of the Falklands war in the South Atlantic who, after all this time r still waiting for recognition and veterans benefits, and a number r in bad shape , physically, with some missing a leg, others still recovering from frostbite, and other illnesses but who support each other. 1 day at my hotel was called from the desk to say someone was waiting just outside for me. Went down at it was Luis from the Encampamento in Plaza de Mayo who had wheeled himself on his own from the Plaza to my hotel, about 5 blocks.What strength of character!So please don't say everything is free in Argentina!"Ojalla,"if only that were so and those "soldados rasos" whom I interviewed at length could get the recognition and benefits that they justly deserved.1 cannot live on mate alone!Recall Roberto, missing 1 leg, casualty of the war, who adopted a dog he named Christina. 1 day Christina went missing but found by a kind soul who had her washed and groomed, and returned herto Roberto at the Encampamento!Argentinians are great people!
We moved to Buenos Aires from California last year and have experienced the crashing of the economy first hand. The well-off Argentines tell us that, although with the peso falling life is tough, they would much rather stay with Macri. Our cleaning lady and much of the rest of the less well off we meet lament at the harshness of Macri’s policies and long for days of Christina. The article accurately represents the situation on the ground and I see the return to populism this October. The people here, all of them, deserve much better. And at this point they don’t care about the corruption, the inequality, the IMF, and the debt of the country. They want subsidies back and a way to put food on the table. The situation is quite dire and they don’t see a path forward with the current government. I am afraid that handouts will return and the economy will continue its abysmal spiral downward as we get to the end of this year given the struggles of majority of the people here.
18
There was a reason Argentina needed the IMF: Marcri wasn't as frugal as the article suggests. He just preferred to spend the money on the fat cats rather than the poor people.
The article is also misses the importance of the exchange rate crisis. Macri kept the peso overvalued for much too long. That led to a massive capital flight that greatly damaged the economy.
7
If the alternative to 'populism' is "winning the trust of international investors" (i.e. making the system as profitable as possible for them by not allowing anything more than subsistence for ordinary workers) then either populism or an oppressive police state enforcing capital's preferences is bound to be the result.
A third alternative, a Norway or Denmark like less inequitable society, one in which grandees who seem to own entire towns don't complain that taxes prevent them from acquiring more land, would let the angry peasants lay down their pitchforks while still allowing the wealthy to live enormously well.
6
I spent the month of March in Argentina, mostly Buenos Aires and Mendoza. In the capital I found the city to be in a funk. My dollars had great buying power and better restaurants were mostly populated by foreigners. I saw more people sleeping in the streets than last time and sidewalks and streets were in need of repair. The high end stores were empty. The real estate offices listed apartments for sale or rent in U.S. dollars. My hotel gave me a printed page warning me not to wear expensive jewelry or I would be a target for thieves.
Mendoza was quite a different story. The wine industry continues to grow and the mostly family owned wineries are bustling with energy and optimism. Sales outside the country are growing and new markets (China) create opportunity. Hopefully the administration won’t impose export taxes (if they haven’t already).
As I read the comments on this article I am taken aback with the blame placed on banks, Wall Street, hedge funds, etc. The giveaways to people who don’t work cripples the economy. There is no way to pay for that but as one featured person suggests, they come to expect it. The real danger is that Mrs Kirchner could be re-elected. That would be a disaster and the cycle would start all over Such a shame.
27
Isn’t that what we Democrat’s want for America, a Universal basic subsidy, discharge of college debt for the multiple degrees we have acquired. And we guard our trash dumps so only Waste Management profits. I live in an affluent area of Florida and when I put out my trash in the late afternoon anything of any value is soon gone, an old rusted out grill last week, a non-working TV last month.
3
@Tejano I live in Mendoza around 6 months a year and for those involved in the tourist industry life is less difficult but for most Mendozans whose buying power has greatly diminished because of inflation and the 1,000% increase in utilities/gas life is miserable and getting worse. It is a global problem as unfettered capitalisms war on the middle class is wreaking havoc to the benefit of very few people. The idea that folks in Arg. or anywhere else would prefer to live poorly off the largesse of the state rather than work is garbage. That is a right wing propaganda trope used to get the middle class to vote against their own interests. Divide and conquer is in full force. There were jobs and domestic production when Argentina was insulated from the world financial network but that all disappeared the minute Macri and his minions sold the soul of Argentina for some loose coins. All people need shelter and food above all else and a state that provides education and health care to its citizens even at a 8% budget deficit is fulfilling its duty more-so than a state with 0% deficit with a sick and hopeless population.
25
The biggest problem here is the international interference, particularly from governments like the USA. The USA’s embassy during Marci’s government has been the second office for many right wing politicians. Nobody is blaming the USA directly, we should blame the current Argentine government and the too-strong connection with Washington D.C. During the prior government the dollar exchange was 13 pesos to a dollar. After almost four years of Marci’s, IFM’s and USA policies... the exchange rate went to 45 Argentine peso to one USA’s dollar? Any questions? The poor and working class are paying the burden of these neoliberal ideas.
9
Argentina, like Greece, has folded their sovereign debt more often over the last 100+ years than I change socks.
Talk to the Argentine -- of any era -- and they will tell you that it must be the banks (local, international, doesn't matter) that destroyed them. I'm always on board with blaming banks -- they're always guilty -- but the Argentine judiciary and political apparatus makes the union dockworkers in Jersey City in the 1950s look like choir boys.
Pity the poor Argentine slob that owned sovereign bonds and her mortgage had the peso pegged 1:1 with the dollar (right up until the moment it wasn't). Literally, wake up the next morning and your mortgage is three times what it was yesterday. That was when the last economic dump happened. And it is guaranteed to happen again. And every reasonably intelligent Argentine knows that.
The Greeks do the same: blame the German and French banks (I agree, but only up to a limited point).
9
Humm! Hasn't Argentina economic and and social policy been heavily tinged with populism at most times over the last 50 yrs? And that is why Argentina went from a quite high GDP/capita to what it is now? Don't look just at the present but also at what preceded it!
18
Inequality will bring this to wherever it exists eventually.
8
I had no idea that the Argentina economy was this bad. It is frightening.
7
Populism, socialism, capitalism or communism. It doesn't matter what the government is labeled, if you consistently
spend more money than you collect them eventually there will be a disaster. The USA has debt of over 100 percent of gdp and a budget deficit greater than 5 percent of gdp. Someday this fiscal ineptitude will lead to a crisis and we could easily go the way of Argentina.
33
@Kurt Right! The USA is another example of spending more than is brought in. It's not the political system, it's whether the system is managed responsibly to the benefit of all.
7
FYI, Macri’s economic team has been “transferred” directly from Golden Sachs, Morgan Stanley’s offices to Argentina’s Economic “experts.” Filling in the ranks at the National Bank, and the Economy Ministry.
3
I have just returned home from three weeks in Latin America, most of it in Argentina. People with whom I discussed the matter generally had the view that there had not been any changes, but I think this was in part cynicism as clearly there have been structural changes. The tragedy is that the lot of the average person has yet to change for the better. The article did not mention some quite sweeping moves against endemic corruption, for example, the aftermath of the revelation of the detailed notes kept by chauffeur, Oscar Centeno, concerning bags of cash he delivered around Buenos Aires.
President Macri has reached out to political opponents and others in an attempt to reach a national concensus on how to move forwards. It is worth remembering that he has to contend with a largely peronist Congreso and, as the article notes, significant systemic problems that are not curable overnight.
I truly hope that lasting remedies are found for these problems. The Argentine people deserve far better than they have had in the past.
21
Really? President Macri... reaching out to the opposition? Which Argentina did you visit? Macri as Trump are crooks, the prior without the flamboyancy of the later.
1
Populism? You really should qualify this broad, almost meaningless concept (particularly in the Trump "era"). Oh! And speaking of Trump, Macri-The Panama Paper guy-- and actual president of Argentina, was dealing in real state business with Macri, in the 1990s. Birds of the same feather.... But anyway, how you call an administration such as the one we are enduring now in the US? And, how we should call the one the argentines are enduring now?Both have so many features in common! A Demo-dictatorship perhaps?
12
Having traveled twice to Argentina in the last three years people told me that Marci had gotten rid of a lot of totally ridiculous policies of the Kirschner years, like giving away free electricity and a bunch of strange fees and taxes, like a $160 reciprocity fee to get in the country. I was told the history there was always a swing from the extreme liberal to ultra conservative, although Marci seems to have tried a balancing act. Just what I heard from the people there. It's a great country.
14
Buenos Aires is my favorite city in the whole world. Been there twice. So far.... :)
13
@wayne griswald reciprocity fee is not strange nor is it a tax. The US and Canada charge many countries citizens the same $160 to enter the US. That is why its called "reciprocity", Argentines were paying it to travel to the US so they started charging North American countries the same amount, they are "reciprocating" the same fee!
8
You must have spoken to the well off. Macri imposed utilities costs similar to those living in California, unfortunately Argentines earnings in Argentine pesos... and not in USA dollars.
1
There is a narrative regarding the Argentine economy that is repeated in every article written about it. While some of this narrative is true, it is also reductionist. Like Italy, Argentina has strengths unrecognized by the statistics. It also, like Italy, has endemic corruption. It's a leaky boat and there are a lot of hustlers making money off of the inefficiencies. Partisanship infiltrates all aspects of society, cronyism is extreme and there is a histrionic level of political discourse at all times. (Sound familiar?) So problem-solving and civil discourse is not a strength. And as some posters have pointed out, trade policy has always been problematic. It is just hard to imagine Argentina ever getting its act fully together. The rich will get richer and the poor poorer and the middle class ride a roller coaster. Kirchner, who acted positively unhinged at times while president--not that we should talk!--is not the answer. It would be hard to figure out who, if anyone, is.
27
@Theresa
Culture and the individual character that it cultivates matters in the fate of a nation than who is at head, at least over the long run.
1
The Kirchners did something right in ending the relationship with the IMF. The country should not borrow in a currency that it cannot pay back. And every dollar spent on imports should be offset by a dollar of exports.
Macri and his team of Wall Street educated professionals have shown breathtaking ineptitude: even with the help of a massive IMF loan they produced no results. So what happened with the money from the IMF ? it was used by wealthy Argentines to buy dollars on the cheap to treasure them outside the country (e.g. Miami). Now the ordinary
Argentines have to figure out how to pay these dollars back.
This has been happening for decades, and this form of legally sanctioned corruption is far more damaging than spending on feeding
the hungry or paying the teachers (the 'populism').
36
@Jorge L
I thought Argentina paid back the IMF in full and stiffed the private banks (who deserved it). Though, as I understand it, much of the IMF money was taxpayer money that was cycled through Argentina as loans that’s went to make interest payments to the private banks.
2
For as long as i can remember, Argentina has been a basket case. It would gorge on debt, fund patronage and a few later declare insolvency and negotiate an austerity driven package with lenders.
After some 200 years of independence you'd think they might get it right. Nope.
Not that this has in any way curbed the arrogance Argentines routinely exude.
I suppose they are just doing God's work.
5
One of the grossest things I've ever seen was in Montevideo
watching a guy eat a sandwich out of a trash bag inside a dumpster. The Argys and Uruguayans are great people I hate seeing these noble people reduced to this.
6
Ill informed. I don’t think you understand the damage the former government caused Argentina. This president has a lot to learn, and he might not have been the solution for our crisis, but if we go back to the level of corruption and indecent abuse of power from the past, Argentina might never recover.
17
The governments in Argentina surely have not been the best, but I'd like to ask how much Wall Street banks, including hedge funds, have made off the Argentine people. Democracy Now ran a story a few year agos showing that the billionaire Paul Singer bought up Argentine debt from the 1990s for $40 million and is demanding repayment of nearly $2 billion. https://www.democracynow.org/2016/3/11/the_vulture_how_billionaire_rubio_backer
27
Populism feed ( and needs ) unlearned people. It's the key.
7
Who are the people throwing items with value in the trash? How are they faring? What is their role in this crisis?
2
Despite all evidence to the contrary, governments insist on fighting hard times with austerity.
The U.S. recovered fairly quickly from the Bush Recession thanks to accelerated government spending, while austerity-minded U.K. took much longer.
Now the U.S. foolishly is cutting taxes — mainly for the very rich — during good times, when incentives are not needed. Paying down the debt should have been the priority.
25
Argentina has gone through 2 major deflationary currency revamps and hyper inflation in our lifetimes. Brady Bonds in the 80's were created as well as other vehicles later in the 90's to "help" them out of trouble. The problem is that Argentina is governed by successively corrupt governments and a lack of production. I think they are too beholden to foreign banks.
4
I wonder if economic populism for the masses in Argentina was designed as a trade off for maintaining a restrictive economic system that truly only benefited a small number of people?
2
This article is way too bleak. Despite all the poor management and despite the long-standing Argentine inclination to look for saviors in populists like Juan Peron and the Kirchners, Argentina still has one of the best independent economies in Latin America. With the exception of small niche economies like the Bahamas and Panama, Argentina trails only Chile, Mexico and its neighbor Uruguay in per capita purchasing power GDP.
So articles that portray Argentina as a nation of people combing through garbage dumps for scraps of rotting food are misrepresentations of reality and provide ammunition for those who seed to undermine Maricio Macri's valid attempts to reform his nation's mindset and economy. Argentina's travails are nothing compared to what socialism has inflicted on Venezuela and on Cuba (the Latin American nation with the highest per capita GDP before Castro, and now with just about the lowest). It doesn't help when influential American media outlets fan the fire of left-wing populists by printing grossly distorted articles about suffering in a nation that has troubles, but is hardly on the brink of becoming Venezuela.
34
Austerity clearly works well. Ask Britain.
10
@ Beachdog ask Iceland
7
Mr. Velazquez and Ms. Pereyra decided to have seven children although they literally depend on trash to make a living.
While I realize that many folks in this world suffer much misery through no fault of their own and that Argentina has seemingly unending problems (largely self inflicted), having seven children in these circumstances only ensures more poverty and misery.
I am a fairly well off guy, but if i had seven children I would likely be poor!
People have got to make better choices in their lives if they want to live better. I really don't have sympathy for people who go out of their way to create more problems for themselves, and for these kids who, honestly speaking, really won't get much of out life.
47
@Will.
I agree about choices-
And from experience, a lot of the working class is extremely unreliable-
A maid hired doesn’t show up, or the electrician doesn’t call back or doesn’t finish a job- to give an example- the work ethic stinks-
It’s easier to get the subsidy from the government and call it a day- I am not saying there is no suffering- but again, like you point out- people make choices.
11
@Will.: well, in countries where the likelihood
of your baby or infant dying is high, i.e. where
conditions re. health care, employment etc. are bleak,
people tend to have more children to make sure
at least some of them make it beyond childhood.
as soon as their economic situation improves,
they decide to have less children if they can rely
on a permanent and life-sustaining income!
the issue is not overpopulation.
the issue is the utterly unfair distribution of wealth.
we can't just blame "the global south" for problems
the global north is very responsible for.
establish
- fair int'l trade policies instead of "free trade agreements",
- fair financial policies
[remember how people bet on and induce the bankruptcy
of entire states and then cash in on it?],
- a global minimum wage,
- a ban on tax evasion, money laundering, corruption
- ...
- ...
7
@Will.
The Argentines don't make choices, they stumble forward and "stuff" happens.
6
Sounds like the current govt implemented shock therapy to the economy without any plans to deal with the fallout. When will economists and conservative politicians learn that shocking a weak economy will result in enormous pains for the poor, and in a democracy, your govt won't last long enough to implement long term economy changes?!
7
It is the other way round. Poverty is not risking to bring what you, neoluberal conservatives call "populism" back. It is the lack of populism what brought the poverty. The term populism is totally misleading, the correct definition of Cristina Kirchner comes with another "K": KEYNESIANISM. The same policies that promoted growth in USA with Roosvelt and in Europe. Another name: WELFARE STATE. But, when underdeveloped countries try the same policies as the developed ones, promoting consumption and the growth of INDUSTRY (Argentina's manufactured DOUBLED during Kirchner's 12 year rule ans are slashing down with Mr. Macri) then they are entitled as "populists".
Martin Vernengo
Professor Universidad de Buenos Aires / San Martin.
46
Classic Argentine joke:
A poor man and a rich man were sitting next to each other at a lunch counter. The rich man was eating a huge steak, while the poor man was nibbling away at a small loaf of bread. After enjoying his delicious meal, the rich man turned to the poor man and said:
"You know, statistically speaking, we've both just eaten half a steak and half a loaf of bread!"
27
Argentina was a rich country, really rich, not very long ago. Prosperity dwindled slowly and unevenly at first.
There but for the grace of... well. It's not clear whether any grace is truly stopping us from following the same route.
We may go there yet.
23
Economic misery under Obama brought populism to the United States. And that populism gave us Trump. Be careful Argentina.
10
Oh, Argentina is pass the point of 'to be careful'. Seems like the wonderful free market could not make its wonders there.
6
Having lived in Argentina during my younger years of the early 2000's, I love the people and country very much. I am rooting for Macri and recognize the very real pains that come from reversing bad policy implemented over many decades. I feel very bad for the withdrawal pains and suffering being felt by many as a result of the conclusion of the prior proverbial drug addiction. Please stay strong, and don't return to the destructive policy that created these problems in the first place - no matter how tempting in the near-term.
30
@Adam:
The fact is that deregulation-fueled DEBT BUBBLES have historically caused Argentina's crises.
That's where Macri comes in.
His carry-trade debt debacle is almost identical to the "financial bicycle" promoted during the dictatorship - when, in 1979-81, you could get up to 60% interest IN DOLLARS and, thanks to wholesale banking deregulation, easily hot-foot the proceeds out of the country.
The wave of bad debts and capital flight bankrupted Argentina in '81, lining the pockets of banks and the well-connected (including the Macris) but leaving massive capital outflows by way of interest payments - that only eased once Kirchner restructured the debt in '05.
The heist was repeated in the late '90s under Menem (you saw the aftermath), and now again by Cheeto's old friend Macri, who's now using IMF LOANS to issue billions in 74% short-term bills - proceeds that banks and others (inc. gov't officials, and possibly Macri himself) are now "bicycling" out of the country.
Accordingly, foreign debts have MORE THAN DOUBLED just since Macri took office, and interest payments more than tripled - in dollars. The 'Bicycle' accounts for two-thirds of this new debt.
Like the Bush-era derivatives heist (the closest U.S. equivalent), the debts are simply being left for the next administration to cover.
Except, of course, Argentina can't create endless dollars out of thin air, the way the Fed does.
20
@Ken
you got it all right Ken.
7
@Ken it’s almost like they want to lose. 4 years as president, you and all your friends get richc and get out fast! Sounds good to me. Sounds almost Trumpian ...
2
As a native of Buenos Aires, long time resident in the US, and frequent visitor to Argentina; I must say that an article like this on could haven been written at least once a decade since the 50's. There were shantytowns then, and garbage dump scavengers as well.
In the meantime Argentina still has a very large, growing, well educated middle-class. Despite the economic turmoil, they eat well, travel the world, take long vacations. Somewhat hard to understand, but true.
And by the way, ever since, Argentina sports more doctors per capita than the US.
85
@Henry Weinschenk
Puzzled how numbers of doctors factor in to the situation? Are doctors the primary metric.... explain, please. And the middle class part, then who are the upper class?
6
@Henry Weinschenk Yes, there is a well educated middle class. However this vacation season lots of them opted for a staycation, the devaluation of the peso being a deal killer. I do love the country, just spent 6 months and will be back later this year for another 3. Have friends there that can be called middle class, they're not having "fun". As for the top?............ they're still making $$$ hand over fist.
Oddly while some want Kirchner back, they seem to forget that the terrible twosome robbed the country blind.
7
pop·u·lism
a political approach that strives to appeal to ordinary people who feel that their concerns are disregarded by established elite groups.
Your headline states, "Bring back populism" So, The People in the US constitution aren't "ordinary'?!!?
4
For the first time in decades, Argentina has a competent, honest president whose focus is on putting the country on a rational and sustainable road, which takes time after 70 years of misrule.
The ultimate beneficiaries of this reform would be exactly the people described in this article.
But the Peronist Party of Cristina Fernandez, which left Pres. Macri this mess, is now saying it's all his fault, bring us back, we'll give you more handouts. Forget reform! Handouts now!
If they do come back this Fall, they'll destroy the economy again, once again half the population will see through the lies, and they will eventually be replaced -- again -- by a better government. But once again, the Peronists will have sown enough chaos and planted enough economic time-bombs that the mess will prove impossible to fix. They will then use this to return to power.
They have been repeating this trick for 70 years, since Peronism began with the slogan "shoes yes, books no". Not only poverty, but also poor education and ignorance, are the ingredients Peronist politicians need to gain access to power in order to be able to loot and steal.
54
Well, Macri's prescription doesn't work either. Maybe, it will in 100 years, but the people are suffering today, and are not eager to figure out what happens 100 years after. Populism offers relieve right now, and common sense says 'take it', because 100 years from now you will be dead
16
@Damien O’Driscoll "Honest"? Let's ask Odebrecht and bring to light those bank accounts in the Cayman Island.
1
I do wish the author was better informed on both Argentine history and Argentine economics. If he was better informed he would know that it wasn't "populism" (his derogatory term for Peronismo) that dominated Argentina's last century, but neo-liberalism (policies that focused on shrinking the state and allowing global market forces to rule and embodied an absolutist position against social spending). Peronismo was but a short 10 year stint during the mid-20th century; it was followed by military regimes that attempted to dismantle the social programs the Justicialista party had put into place, to undercut union protections for workers, to impose a strict conservative social agenda. Peron's return in 1973 did little to change that; the military government that followed in 1976, under the guidance of guru Martinez de Hoz, was completely sold out to the privatizing machinations of the Chicago school, and also deeply corrupt; a short hiatus with the return of Alfonsin, whose policies were economically incoherent and led to a major economic crisis, the Peronist (in name only) Menem embarked on a major program of privatization and opening up the Argentine economy to global trade (often to the detriment of the local economy). It was these IMF driven economic policies that created the economic disaster at the beginning of the new millennium. Neither of the Kirchners were "populists (whatever the imprecise meaning of the term)," they are best described as protectionists,
122
@terry hoops
Thank you for posting this and saving me the trouble. I know Argentina well and have friends in all spectra of society there. I have watched my lower middle-class friends sink lower and lower on the economic scale, struggling to stay out of poverty. These are the people who pay the price for Martinez de Hoz, Cavallo and the other American-inspired con men in suits who systematically hollow out the Argentine economy. The description of Macri's trying to stabilize the peso by liquidating Argentina's dollar reserves reminds me very much of what happened in the 90's, culminating in the "coralito" and massive destruction of middle-class wealth.
Most indicative in this article is the wealthy landowner, accustomed to exporting his soybean crop at zero benefit to the rest of the country, and lamenting that the high interest rates keep him from acquiring yet more land.
Neither party has a monopoly on incompetence and corruption. The only difference is that the Kirchnerites spread some money to the lower classes in the process.
30
@Stuart I will say this with no negative sentiments about Argentinian people, but why the Argentinian people do not copy or use the European systems of goverment as they claim so much that they are not Latin American but europeans. Perhaps it will help them.
8
@Stuart and Terry Hoops
Ditto ! Add to that the role of IMFwho participated in the the biggest economic hold-up of the century in Argentina.
Try to find Fernando E. Solanas's documentary : Social Genocide (Memoria del saqueo) for a vivid account of how « men in black suits » aided by a corrupt governments sent Argentina in hell.
https://en.wikipedia.org/wiki/Social_Genocide
16
Argentina is the Lost Land. Peronistas, Macristas, Populistas, Radicales, all the politicians and their followers are the same trash. They work for their own pockets. They don't care for the decent citizens.
6
Unlike Democrats and Republicans, who care a lot about their constituents.
17
Thank god Argentina hasn't been the victim of Chinese debt trap diplomacy! Borrowing hundreds of billions of dollars from western banks and then going into hock to the IMF and having it dictate a neo-Liberal economic approach that forces the poor to live by mining garbage dumps for rotten chicken scraps is a much better route for Argentina than the prospect that borrowing money from China might rob the country of its economic independence.
5
@William Verick
William you're a bit too late in your thanking God. They are there. And it's a problem
https://www.nytimes.com/2018/07/28/world/americas/china-latin-america.html
1
Way biased adjectives to describe all things not vulture capitalistic. How about rich Argentines refusing to pay their taxes for one hundred years.
27
@Joe B. If you study Argentina's tax system you will realize that its tax base rests mostly on the backs of the "campo" or agricultural producers and is collected in the form of "retenciones" on soya and other crops.
The policy of the Kirchner governments was to shift taxes entirely onto the rural, productive sector of the economy, who were presumed to be conservative and class and political enemies.
13
Argentina is not the fifth rated country for tax evasion for no reason. They tried and failed to sunset the export tax on Ag. Commodities because they need the revenue. The Panama Papers do not paint a pretty picture. In their defense, Argentines endure an endless array of federal and provincial taxes. But it the rich who avoid their tax obligations.
13
The Argentine Government under Macri added very good officials, but they continue to be Argentines. That means they are obsessed with maintaining an over valued currency and have a mercantilist view of trade (i.e. exports are good, while imports are bad and need to be restricted). This is not a good prescription for any modern economy, with the results that Argentines are currently suffering.
Macri cut the amount of imports banned from the extreme level set by the previous government, but continued the overall system to protect local producers of almost every product (does Argentina really need to have an electronics industry in Tierra del Fuego?). The end result is extremely inefficient industries, and high inflation that is further fueled by large budget deficits.
It is normal for a currency to fall and imports increase in the face of high inflation, but this being Argentina; they are unwilling to allow the currency to fall (as noted above they love a strong currency). Instead, they have raised interest rates and sought loans from the IMF to defend the value of the currency. Pretty much the same approach as was pursued during the 2001/2002 crisis to defend the currency link with the US dollar – with disastrous results.
3
The Times needs to rein in the use of the term "populism." Basically anything outside the narrow DC beltway Overton window is dubbed "populist" now. Whatever you opinion on Argentine politics, left, right or Peronista, no one was calling it "populism" 20 years ago. It's become a sloppy catch-all term for anything that doesn't immediately conform to the Anglo-American economics model. I say this as a person who is appalled with the rise of fascism and ultra-nationalism in the world. The more you use the term "populist" the less meaning it has.
116
@James S The Times, like the rest of the leadership of both parties in the US, is terrified of the citizens of this country, have pulled the wool over their eyes for decades now. The Overton window has no room for taxing wisely and returning those taxes in the form of benefits for citizens.
4
@James S Exactly. If spending money to help the people of a country rather than cutting taxes and deregulating the market to help the richest of the rich is "populism", then sign me up! The word "populism" just means "ideas that are popular with the people". Those ideas can be bad (like racism) or good (like redistributive economic policies). Only in the topsy-turvy world that neoliberal capitalism has produced could anyone claim that an idea is bad simply because it serves everyday people.
7
@James S
It's much easier to write a story if you can deal first with "populists on the left" and then "populists on the right."
2
Brazil, Turkey, Argentina, and other countries supposed to be doing better are not because they interact with the global economy (capitalism). It has declining growth rates since the 1970s despite its increased productivity. The only exception is China which has given it a prolonged shelf life thanks the work of hundreds of millions there. No matter what disguise they wear, medium or small size national economies or countries cannot independently thrive within this global system. The exception, China, is now finding its own limits in slower growth and the boundaries others set on her to get a bigger portion of the profit generated globally
4
@Enri
China saw what happened with Latin America and Russia and said "Thanks, but no thanks," to US experts. The didn't let the big banks come in and take control, they continued to maintain a targeted industrial policy instead of relying on the magic of the "free" market, and generally fended off US competition until their industries were in a position to deal with it. The same can be said for other economic winners Japan and S. Korea. Otherwise, all these countries would be much less advanced than they are.
There's another difference between China and Latin America, other than size (I do business in both regions). In Latin America, corruption is predatory and goes from the top politicians and bankers, to the building inspector down to the lowest level of traffic cop, and trust in institutions is zero, as is desire to pay taxes. It's very hard to implement policy on the ground.
In China, influence is acquired and gifts are given to get ahead, but there are no protection rackets, corrupt inspectors etc You don't have to constantly look over your shoulder. People generally comply with government mandates, so the government can actually implement policy.
Finally, in Argentina business cycles are so abrupt that everyone wants to make money right now, on the very first transaction, rather than invest in a long-term relationship, as they do in China. This is one of the most debilitating aspects of Argentine business culture.
17
Japan started its industrialization way before the Second World War, Korea immediately after their own war in the fifties to counter its neighbors. Japan is the third largest economy. Argentina by contrast was wealthy by international standards before Perón (together with Uruguay exceptions in mostly rural Latin America ).
Globalization or the model implemented after 1980 brought Argentina and other countries firmly under imf and financial international institutions.
China had a revolution in 1949. That made the difference and the turn to use international capital on her own terms a la Deng tsiao Ping
2
Argentina is a unique economy. A hundred years ago it was considered developed.
5
Almost everything in Argentina close from 1 to 5 in the afternoon every weekday. Retail, restaurants, banks, services, etc. After 5 pm they might (or might not) open for another 2 or 3 hours. Banks do not.
In smaller towns often restaurants are closed during lunch time. ?
Is that a way to run a business or administration or government??
5
I would argue, yes! Probably ALL of us. It would be a better world.
1
This is fantasy. Stores- restaurants etc don't close for "naps" since the 80's. Malls open from 9am to 'till 10pm. Regular working hours are typically from 8/9am to 6/7pm. And absolutely not difficult to find lunch at all. I will assume you are a tourist trying to eat dinner at 5pm, we eat dinner starting at 9pm.
52
@Jean Nisch Only in the smallest and sleepiest rural towns will you still find this kind of siesta. Argentines who have jobs work plenty of hours.
10
When a government focuses on winning the "confidence of global investors," we know who will be assured of doing well, and who will pay the price to assure those doing well can continue to do so. Austerity is designed to protect investors. Economic orthodoxy assumes that we must have a growing economy, even if it means a growing income and wealth gap.
It's been pretty well documented capitalism has major flaws. Fine. It's up to government to offset those flaws. Unfortunately, leaders of government, business, and industry are the beneficiaries of those flaws, so have little motivation to help the people who capitalism fails t serve.
I believe in capitalism. Its flaws are well known. It needs to be fixed. Who will do that?
9
@Jim Greenwood Capitalism has lifted literally billions out of poverty. Argentina's problem goes back decades to Peronism, which is a catch all term for populism.
5
Unfortunately, it will take a while to correct all the distortions in the Argentinian economy, but a Kirchner return would be a sure disaster. Just look at Venezuela to see the the ultimate consequences of Latin-America left wing populism.
17
@bruno
And what are the consequences of perennial right-wing rule?
I'm thinking of paradises like Guatemala, Honduras, El Salvador, where people are so desperate, they'll leave everything behind and walk for weeks to the Texas border.... Or, say, Brazil before Lula? Or Argentina under the generals? Or Chile under Pinochet? Or the plight of the multitudes in Venezuela, pre-Chavez? Or Mexico, during years of right-wing election theft?
If this is success -- and the right-wing oligarchy had centuries to get it right -- what troubles you so much about "left-wing populism"?
24
@jrd It's one thing to be right wing, it's another to be corrupt. Take Pinochet and Somoza as examples. Both were right wing. Pinochet however did a great jon economically, even if politically he was brutal. Somoza just used Nicaragua as a slush fund.
Argentina was richest under an export economy, which leftists in the 1920s and 1930s promptly tried to stifle.
Venezuela is even worse off now than it was. Chavez poured billions into handouts but did nothing for the economy. He gutted the state oil firm and stacked it with inexperienced loyalists.
12
@J. G.
It's a myth that Pinochet "did a great job economically".
The Chicago boys came down -- and failed. Look at the stats. The country only began to recover when Pinochet was dumped and a measure of democracy returned.
17
I noted a sad similarity among several families spotlighted in the article: 7 children, 7 children, 3 children. Abortion is virtually illegal in Argentina.
I wonder if there is a connection.
79
@Connecticut Yankee - People look to technology to save us. Birth Control is one of those marvels of technology. Unfortunately it isn't used enough.
30
@Connecticut Yankee
Argentina population growth is approx. 0.9%, Not very high.
10
@Connecticut Yankee Birth control is available, it's the ignorance in not using it...and this is true in Central America, Africa, East Asia, India and on and on.
11
This piece left me wondering a number of times what was left out of the article. To blame populism for the corruption of Brazil is absurd. The political apparatus in Brazil is corrupt. That is how politics is done there. Is the right not corrupt in Brazil? Or is the NY Times just not covering the most recent instance of Temer, the ex president of Brazil being arrested again on corruption?
There is obviously an ongoing coup attempt in Venezuela with underlying economic warfare. Reminiscent of Chile in the years before Allende's overthrow in 1971. Both done with the support of the U.S. Government.
Given the absence of discussion of the military dictatorship and their role in the debt crisis, this article borders on misinformation.
43
@Jiro SF Try talking to an actual Venezuelan. The people support Guaidó for obvious reasons. Venezuela's problems are Chavez's making.
Reminder, Temer was only the vice president under Rousseff. The PT controlles Brazil for like 15 years and made nothing of it.
6
@J. G.
The "people" had never even heard of Guaido before he declared himself president.
He comes from a small far-right party with no constituency. Maybe he was better known and beloved in Syracuse, N.Y.
And you really need to get your history right. There were enormous gains for ordinary people under Lula, and with unprecedented (for Brazil) economic growth. Note also that Temer was independently charged with corruption -- all on his own, both as vice-president, and later as acting president.
14
@J. G. Yeah man, no one supports Guai-who. They support getting out of an economic mess, and most would like the current govt to figure it out themselves, not have a US puppet do it. They are smarter than that.
This article looks at only part of the picture (the side of the picture that the peronists want to portray).
There is certainly an economic crisis in Argentina due to a combination of mismanagement by the previous government, an historic drought in 2018, and a worsening of international economic conditions.
However, there are many good things going on in Argentina. The government stopped creating artificial divisions among Argentinians, there has been a great reduction in corruption (with people being finally prosecuted for stealing), improvements in government management, and more rational economic policies while maintaining support for the poorer Argentinians.
There is no failed state, no melt down. There are problems but also solutions. We cannot fix 70 years of populism in 3 but the government is doing the right things.
To foreigners, go on vacations to Argentina. It is beautiful, it is tasty, it is fun. And now it is also cheap.
20
@Vito
As was pointed out, it has not been 70 years of populism. Juan Peron, okay: 46-55. After that, a series of dictatorships and non-Popular governments until Peron's return in 73. Peron came back and instituted Right Wing death squads, not a "populist" except in the Trump sense. The Dictators were not populists. That was 73-83, if you include Peron's return. Alfonsin, Menem, Duhalde: not populists, and that pretty much everything from 83-2003
So, the "70 years of Populism" is actually about 25 years.
I didn't hear about the benefits you talk about when I was last there. Indeed, people were terrified of the crime and deeply divided about Macri, who's approval rating is even lower than Trump's.
5
This horror story about the Argentinian meltdown is exactly what the USA will resemble in 20 years. Trump has done his utmost to exalt the very wealthy and the multinational corporations that rule the country, and to oppress the rest of us like the workings of a French press coffee maker. We also resort to printing more money to get out of our troubles in this country...
23
@Tournachonadar
The US does not have any of its national debt denominated in foreign currencies.
Most of Argentina's debt is in foreign currencies.
It makes a difference.
5
@Mike Edwards rilly, how inadequate given that the US national debt is mainly held by foreign countries, many hostile and inimical to the USA...
1
The root of the current economic situation was convertibility of the Argentine Peso to the dollar by President Menem in beginning in 1991 that led to the economic crash of 2002.
Next, immigration was encouraged for an imagined Chavez style socialist utopia by President C Kirchner. This brought waves of immigrants who had nothing to leave behind in their home countries. I suspect many of them are sifting through the dump in the photo. Argentina is a rich country in many ways and will continue to draw people escaping poverty.
Economic development is the answer. Governments in South and Central America have a responsibility to provide access to food, shelter and safety for their citizens and deliver a productive economy.
Free and fair elections by responsible voters have brought needed change to Argentina. It’s not easy to cure these problems and it takes time.
6
Utilitarian economics, which has gone global, is a post-modern abstraction that reverses the actual utility of economics. The discipline exists as a means to produce good social outcomes. It has devolved into an intellectual academic pursuit, divorced from any purpose beyond self-perpetuation. It's one real functional use is as justification for political agendas which have more to do with self-interest than with the determination of the common good.
8
Another failed state. This one, as the article says, once one of the richest in the world. And not just money; more physicians per capita, higher literacy, etc.
Strange that the same thing can be said about Cuba. and Venezuela. Around the middle of the 20th century, the three were among the four richest, most developed countries in Latin America. Is this unbelievable or not???
No, the cause is not simply "socialism" or "populism" -- although these certainly have not helped. In Argentina, the high incomes were based on "the pampa economy," that is farming and livestock -- activities where the country had a strong comparative advantage. The trouble started when Peron launched an urban, industrial sector, fed by tariffs that protected it against competition, and other subsidies. This was financed by the rural sector (goose that laid the golden eggs, anyone?) through both taxes and the appreciation of the currency that was caused by the other policies. Ever since then, Argentina's politics has been a see-saw of policies that favored industry, followed by policies that favored agriculture, and back again. Meanwhile the people got accustomed to government largesse which the politicians used to get support, government got bigger and corruption ditto, the military took over for a while and improved nothing, investors both foreign and domestic lost confidence (what a surprise!) and by now we have a country where apparently nothing works.
A cautionary tale. Qué pena!
39
@joel bergsman -
"The difference between genius and stupidity is that genius has its limits."
Argentina illustrates the validity of Einstein's remark as many other countries have done in the past:
7
@joel bergsman
Yes, I agree mostly with this opinion. But Peron and peronismo are only part of the problem. Corruption is in the argentine blood and that is hard to get rid of. The fish stinks from the head, moral does not filter up it trickels down. Are there any honest politicians? Who would be so crazy as to invest in Argentina when there is no adherance to the rules of business. When unions can do what they want and the labor laws favor the heads, not the workers. The Kirchner years have been the most corrupt in history. Sure, people are crying now, when there is no money to give for not working. Force Cristina, family and co, to return what they've stolen from the people. The sad truth is that Argentina has always muddle through and will so, nothing will ever change. Try to find a somewhat honest politician and start a movement, Argentina could be great again. But... qué pena!
5
One day, we must wake up to the fact that the world is in "DIRE NEED" of (new) valid economic theories. Economic projections seems to miss the mark way too often!!!
11
such a depressing reminder of how many countries in the world, including ours, are so ill-served by their leaders.
48
So this family of nine built their home years ago next to the garbage dump under the former populist president but now represent the failures of the recently elected centrist?
60
Correct. And in the next cycle they will get a satellite dish for the house. But most likely they will remain poor while the next peronista in turn keeps promising equality and free everything for all. Is not about structural changes, is about faith. Evita vive! Argentineans like that.
12
@DoctorRPP
Still at the dump, joined now by Ayelen Benitez, who lost her job as a maid, among the many other newcomers picking thru the trash. What a waste of humanity.
4
I am sorry to inform you that Argentinians are not the only people who vote based on false promises of their political leaders. How’s your president Mr. Trump doing today?
14
The thought of CFK coming back in Argentina's next presidential elections is as terrifying as bring back Chavez from the death.
60
@ericov Are you serious? An other hater of a woman president who took Argentina out of the black hole corrupt governments such of Argentina, all à la Menem (a president very similar at the actual Panama Paper guy) who submerged Argentina and all his people in a total misery and debt? Seldom, a woman such as Cristina Kirchner has been so vilified, almost she has been and still vilified as Trump vilifies anybody who cares about democracy and the well-being of all and not just a few like himself (aka The Panama Guy or Trump).
2
This article is full of falacies and misconceptions: Cristina favors internal consumption, investment in industries, culture and science. The subsidies were real and help of poor people was real but also real were 20 or so new universities, free and public education, tons of moneys to scientific research, and cultural projects. Yes, they made many mistakes, and corruption, like in so many countries, was also real.
But the so called "investment rush" from Macri's goverment was at best financial speculative money seduced by high interest rates (70%) to then switch back to dollars from the peso and then flee the country. Macri has zero interest in investing in our country.
Cristina, a keynesian, will bring back internal development, which is the only real investment in our country that we can make and the only trickle-down economics that we can sustain is the one where internal investment and consumption and investment in education, that's what trickles down to the poor when a country is back in business.
Call it populism if you want. To us, many of us, is getting real value for our effort. Macri worked for the 1%. Think about that and the meaning of populism. A "populist", after all, has the lowest unemployment rate in the US since I don't know how many years. Cristina is a better person than Trump, so we, after october, may be on a good path to growth. Tell that to Mr. Tropini.
28
Kirchner's propaganda machine. She left the country in misery and this is the result of her corruption, just like Juan Domingo Perón and Evita, sweet talk to the poor then go to Paris to buy Chanel. She has no shame. "To the people bread and circus" that's her answer. If you like what you see in Venezuela vote for Cristina Kirchner.
39
If you like Trump, you’ll love Macri.
4
@josehalac "Cristina is a better person than Trump." That's a pretty low standard.
Cristina is a thief who looted the very institutions that could have helped Argentina's poor. Anyone who doubts it, google "cuadernos" and "coimas".
If Macri works for the 1%, Cristina works for an even smaller group: her own private band of cronies and bagmen.
10
Beautiful country and friendly people, sad that they cannot dig themselves out of it. I spent a couple of weeks in Buenos Aires this March, the signs of desperation are mounting. The dollar goes a long way now, BA is one of the cheaper destinations in South America. The Argentines have a resigned fatalism. Still they manage, like people around the world. The widening chasm between rich and poor will probably lead to revolutions, a person with nothing to lose is dangerous.
65
The overarching reality, to me, is that Argentines are intellectually and humanistically lazy. No one, but no one, wants to deal with population control, a day's work for a day's pay, and everyone is just complaining that someone else isn't making life easy for him or her. There is no real pride in this country other than the pride of the "good old days" and "I remember when." The country is, in a word, doomed to live out its own negative self-image, crying in its metaphorical beer, and waiting for the Savior who has never come and will never come. So it is, and so it shall be unless... what? Maybe it has to do with people taking responsibility for their own behavior and ceasing the Blame Game. I doubt it, but who knows?
7
@Peter
Best comment on here!