A very special case. In less than 100 years, Argentina has fallen from one of the richest countries in the world to 80th place. Terrible for its population and an example of what should not be done. And the elections showed disappointment and doubt: the final between Massa (socialist) and Milei (liberal). Completely different.

National unity and elections in Argentina

In essence, the problem is politics, the importance of which is clear: it allows us to make collective decisions that we cannot face individually. I can decide which car or clothes to buy (and those who sell me also make their own decisions), but there are issues that go beyond: security, justice, education and health support for the most vulnerable groups, foreign relations and more. For this, we delegate certain decisions and rights to political representatives, but this power is very badly handled in Argentina (in almost all of Latin America). They expanded it endlessly and turned it into a gateway for enriching themselves and their neighbors with ego and money through contracts, deals and bribes. And then they taught voters something very serious: “Give me your vote in exchange for subsidies, protection, benefits and more.” Corrupt relationship between politicians and citizens.

These practices have affected all spheres, and economic and social relations have become absolutely ineffective and disastrous. A country that is very little open to the world (protectionist businessmen plus state greed), a very complicated labor market (unions), disastrous public finances (a thousand interest rates around), price controls (to please everyone) and something very common and serious: when the Government it intervenes (badly) and generates perverse effects, then intervenes to correct the first intervention and thus enters the vicious circle of interventionism. The result, statism and impoverishment, especially for people with weaker abilities because there are others who profit: politicians and their wards, those who can cover themselves with dollars.

Argentina: overcome fear

I don’t know about economics

To make? A liberal shock that breaks those perverse agreements that are not only between politicians, but also around them. The key is to fix public finances: eliminate so many costs or subsidies that benefit only certain groups, have a reasonable tax system and transfer responsibilities to individuals. This is where dollarization comes in because one of the preferred financing mechanisms for decades has been the “central bank machine” that brings inflation, devaluation, uncertainty and impoverishes the poorest. The solution: implement dollarization immediately. The opposite would be to delude ourselves that the system can be improved “from within”, because too many people benefit in one way or another (this is one of the reasons why, amid wild inflation, Massa, the economy minister, is in the second round). Dollarization closes at least one key door that transfers fiscal problems into pockets… and on that solid monetary base, the rest must be rebuilt. Undoubtedly, this creates a fear of losing those “moorings” and for some the little they have: hence Mile’s brake (and absurd phrases). Fears that must be overcome, because the deterioration lasts 70 years and recovery is necessary. (OR)