Debt explained

[daveholman]

I don't think the similarities are that easy to dismiss, Taiwan has a huge market across the straits, and exports are double those of Ireland to the EU. Speaking the same language as your major market is a huge advantage (one now lost to Ireland).

It's a pity you didn't address the GNP / GDP / GNI aspect, I was interested in that.



The PR angle is strange, at one point Ireland and Puerto Rico were the major semiconductor exporters, but somehow the US kneecapped PR. I hope it goes better for them with the pharma industry (probably being rapidly on-shored again with the orange one's tariffs).

As for relevance to Argentina... I don't see anything useful in Taiwan, other than hard work. A certain Javier wanted to emulate Ireland not too long ago (but he had no idea what he was talking about).

The other thing Ireland and Taiwan share is a consistent economic and (relatively) uncorrupt legal system. Having lived here in Argentina for a while now, I would say the corruption and the fact the entire legal/economic framework changes every couple
years discourages investment. Domestic and foreign.

 

[Che1990]

I think the main ingredients in Ireland's economic success are its 12.5% corporate tax rate and its membership in the EU which makes it attractive to multinationals seeking to establish a European base. Not sure if there are any lessons there for Argentina to emulate.

And meanwhile Britain outside the open market with 25% corporation tax and the government wondering why the economy won’t grow

 

[SlowWalker]

And meanwhile Britain outside the open market with 25% corporation tax and the government wondering why the economy won’t grow

I'm pretty sure Britain has 14x the population, and 25% isn't that bad comparatively for a full economy and business.

For Ireland and other jurisdictions I am pretty sure it's largely just transfer/royalty/licensing pricing and domiciling business there. It's not actually a massively productive country.

 

[Agribotics]

As for relevance to Argentina... I don't see anything useful in Taiwan, other than hard work.

I spent several months total in Argentina and Taiwan in 1996 deciding which one to emigrate to from the U.S. I chose Taiwan and have been living here since 1998. Long time permanent resident and business owner now. Bottom line is everything that is wrong with the government and economy in Argentina is right in Taiwan, which is why a considerably smaller country with no natural resources is such an economic powerhouse and a much larger, more populous country blessed with abundant natural resources is an economic baskecase.

The problem now of course though is China so I'm hoping against hope Argentina can finally get its act together so I have a plan B if and when the time comes.

 

[Ries]

The other thing Ireland and Taiwan share is a consistent economic and (relatively) uncorrupt legal system. Having lived here in Argentina for a while now, I would say the corruption and the fact the entire legal/economic framework changes every couple
years discourages investment. Domestic and foreign.

I am always interested to here personal experience with "corruption".
I have heard about quite a bit in the USA, such as my friend who was a general contractor in NYC who would pay off building inspectors, and meter maids, to be able to park dumpsters illegally and get non-code construction approved.
I knew friends in Chicago who would repeatedly pay less than the potential speeding ticket or traffic violation in cash to the policeman rather than get a ticket.
I know in my old neighborhood in Los Angeles, when I lived there in the 80s, more than 70 cops at the Rampart Station were convicted of stealing and selling confiscated drugs, beating and killing innocent or at least unconvicted citizens, and police officers in both LA and NYC have been convicted of murder for hire. (it took about ten years of court cases, but they did eventually go to jail)

Then, there are cases like the Ohio congressman who was convicted of accepting $61 million dollars of kickbacks in 2023,

these kinds of things, to me, are corruption.

I have also travelled in countries where citizens routinely pay police bribes to travel, or merely to do business.

Have you personally had to pay any bribes?
Have you been able to break the law, by paying bribes? Ok, nobody is going to answer yes, to that question, but in truly corrupt countries, its a daily occurance.
My friend Daniel, in Chicago, once asked a cop for change from a 20 for a traffic stop bribe, because he was almost out of gas.
The cop gave him a couple of bucks back...

 

[Agribotics]

Speaking of debt the national debt of the U.S. just reached $38 trillion and it only took 71 days to go from $37 trillion to $38 trillion, a new peacetime record.

 

[Ries]

Its true, since the end of January, Trump has added 2 trillion to the US debt, while adding 2 billion to his personal net worth.

 

[FrankPintor]

I'm pretty sure Britain has 14x the population, and 25% isn't that bad comparatively for a full economy and business.

For Ireland and other jurisdictions I am pretty sure it's largely just transfer/royalty/licensing pricing and domiciling business there. It's not actually a massively productive country.

Incorrect. It's still a very productive country:

• Ireland had the second highest GDP per capita in Purchasing Power Standards (PPS) in 2023, at 213 or 113% higher than the EU27 average. This measurement adjusts for price differences between countries to give an indication of relative economic prosperity.
• Modified Gross National Income (GNI*) is an indicator which excludes certain globalisation effects to give a more accurate measurement of the size of the domestic Irish economy. Ireland’s GNI* per capita in PPS was 122 in 2023, or 22% above the EU27 average.

From https://www.cso.ie/en/releasesandpublications/ep/p-mip/measuringirelandsprogress2023/economy/

 

[Agribotics]

(Light at the end of the tunnel ::::

Meanwhile here in Taiwan the annual inflation rate is 1.25%, national health insurance for my family costs US$60 a month and the government is giving every man, woman, and child US$323 cash this week because it's got more money than it needs.

Point being that a country like Argentina blessed with abundant natural resources could have nice things too one day if it ever gets a government that supports its people who produce the goods and services that make a country wealthy rather than preys on them or ties their hands.

 

[SlowWalker]

(Light at the end of the tunnel ::::

Meanwhile here in Taiwan the annual inflation rate is 1.25%, national health insurance for my family costs US$60 a month and the government is giving every man, woman, and child US$323 cash this week because it's got more money than it needs.

Point being that a country like Argentina blessed with abundant natural resources could have nice things too one day if it ever gets a government that supports its people who produce the goods and services that make a country wealthy rather than preys on them or ties their hands.

A new government doesn't get to start with a clean slate. They start with what's been delivered to them by all previous governments up to that point.

Even with a government with good intentions, it takes time, particularly when behavioral/attitude changes are required and regaining trust both domestically and abroad.

But I do agree, Argentina can have a very bright future, and the fact that they have domestic production of resources and many things also puts them in a unique position. To what extent that will survive remains to be seen.