Argentina’s Economy Unexpectedly Shrank Amid Austerity Push

[MilHojas]

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Economic activity fell 0.3% from August, compared with the median estimate for 0.9% growth of economists surveyed by Bloomberg. From a year ago, activity fell 3.3%, according to government data published Friday.

 

[Murray Rothbard]

When you cut government spending by 14% of GDP, as Milei has, that will cause a recession. However after about a year private investment will boom since governments are no longer competing for resources against the private sector.

 

[redlobster]

When you cut government spending by 14% of GDP, as Milei has, that will cause a recession. However after about a year private investment will boom since governments are no longer competing for resources against the private sector.

So, the government was spending 14% of GDP to buy some Resources. But now, luckily, it can no longer spend this money because Milei took it from them. After about a year of private investment, private businesses will finally get hold of these Resources, and then the economy will boom. Now, it is clear as day.

 

[argeiCanuck]

Gives me hope and much needed aspiration. Out of fixed income economic immigrant retirees ,,,,,, many distinguished economists with decades of former CEO's experience are educating us economy 101.

When you cut government spending by 14% of GDP, as Milei has, that will cause a recession. However after about a year private investment will boom since governments are no longer competing for resources against the private sector.

 

[argeiCanuck]

 

[FrankPintor]

When you cut government spending by 14% of GDP, as Milei has, that will cause a recession. However after about a year private investment will boom since governments are no longer competing for resources against the private sector.

I don't know why anyone should be surprised that "Argentina’s Economy Unexpectedly Shrank Amid Austerity Push".

But I suspect that screeds like yours are the reason Milei gets his microphone cut after 10 mins. Why a year? Why is the government no longer competing? Why against the private sector?

So much left unsaid. Definitely not a "masterclass". Real scientists (and especially mathematicians) get to demonstrate their postulations from "first principles". The dismal scientists don't feel the need?

 

[argeiCanuck]

When you cut government spending by 14% of GDP, as Milei has, that will cause a recession. However after about a year private investment will boom since governments are no longer competing for resources against the private sector.

Very much interested to know your credentials that qualifies you to give an opinion on a national economy.
Must be Godly impressive ,,, I imagine.

 

[Rich One]

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Milei's Shrinking Christmas table ... "Pan Dulce" selling by the slice. Deme "una feta de Pan dulce"

 

[Stephano]

Very much interested to know your credentials that qualifies you to give an opinion on a national economy.
Must be Godly impressive ,,, I imagine.

Because he is Murray Rothbard (1926 - 1995)?

 

[Quilombo]

In other news, water wet; more at 11:00.

I was in the US again this month and wanted to take pictures of tons of stuff at Target because it was cheaper, better quality, and of course, in stock.

In the end we got the country many of us on the forum assumed we'd get: Dollarized Prices with Pesified Salaries. Naturally this is going to result in the destruction of GDP and a recession as people earning 500K struggle to make it to the 10th of the following month after paying out of control prices that are often increasing dozens of percentage points higher than inflation each month.

Argentines can't print money, raise taxes, or get non-usurious loans like Milei and Caputo can, so instead they eat once a day, don't fix a broken AC unit, buy 1 Christmas gift, stop ordering delivery, etc. and this cripples the economy.

But hey, check out the Merval performance, Milei sure showed the caste, didn't he!