Argentina, how to restart
Thanks to the Navy, with the Training Ship San Giorgio D562, in 1975 I had the opportunity to visit various countries and cities including Argentina with its capital Buenos Aires. To visit the city, it was mandatory to stay within a square provided to us by the Argentine Police due to the Tupamaros terrorists (communist-inspired urban guerrilla movement) while the government was led by Isabel Peron and the economic situation even at the time was not was one of the rosiest, the inflation rate hovered around 330.9%, while the exchange rate was 1 dollar for 140 Argentine pesos in addition to a stagnation in the economy with consequent unemployment. From 1975 to today, Argentina has faced several economic and financial crises.
Among the most significant crises we can mention:
1. the 1982 crisis: During this period, Argentina declared bankruptcy, facing a huge debt crisis.
2. The Hyperinflation Crisis of 1989 (5,900%) – 1990 (3,079%): Argentina experienced high inflation that led to an economic and social crisis.
3. The 2001-2002 crisis: This crisis led to the abandonment of the Argentine peso's parity with the US dollar (from 1:1 to 3:1), causing a severe economic recession and an increase in unemployment and poverty.
4. The Debt Crisis of 2018-2019: Argentina faced another debt crisis, trying to negotiate with creditors to reduce its debt burden.
5. The current economic crisis caused by the COVID-19 pandemic: Argentina suffered a further economic recession after the arrival of the coronavirus in 2020.
But that is not all. In my opinion one of the most serious errors on the economic-financial front, I don't know how much it is attributable to corruption, it was the accelerated “sell-off” of all the most important resources of the country, from telecommunications, to transport (trains and planes), from water to gas, to oil (according to the most recent calculations available, 2015, this country has proven reserves of 27 billion barrels of unconventional oil and 802 trillion cubic meters of unconventional gas).
The 10 main economic activities of Argentina | Life Persona – It gets better today A real fortune if it hadn't all been sold off. I could continue to write, but common sense tells me that what is long is not always interesting and so I refer you to the documentary Argentina Diario del Saccheggio ITA (Full) (youtube.com), which I consider exhaustive. Question: Could there be a way to get Argentina out of the crisis even if the current dollar-peso ratio is $1 to 799.95 pesos? Despite knowing that: according to the Odsa Uca Observatory, in the third quarter poverty (44.7%) rose to record levels (for the adolescent children group even at 62.9%), indigence (9.6% ) and unemployment or job insecurity (33.1%)? I could say that there is a solution.
Which? When a nation is in crisis, the IMF or the World Bank and other entities show up and force populations to make further “reforms” and sacrifices (as if those they make were not enough) ergo I would be more inclined if any financing did not end directly into the coffers of the Argentine State, but immediately into the hands of the Argentines (state evertism). As? By giving each family a prepaid credit card, worth $5,000 (currently the monthly salary in manufacturing is around $8,000 a year), to spend on purchases of goods, no used goods and no services.
The population is made up of 38,871,000 people and each family on average has 3.3 people, therefore approximately 11,779,091 families x $5,000 = $58,895,455,000 x (for the propensity to save, 2019 data) 15(?)/ 100 = 6.67 = $392,832,684,450, final result due to the multiplier effect. With these numbers we could restart Argentina's economy knowing that the public debt in June 2023 was 403.809 billion with a 2022 GDP of 632.7 billion dollars, thus giving, perhaps, a slightly more serene future to the population . Obviously the loan must be repaid, but the state coffers will do so with revenues from taxes and VAT (21%). This could be an idea, but who tells President Javier Milei's government this?
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