Murray Rothbard
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Since Javier Milei became president in December, monthly inflation has rapidly dropped from 25 percent to stabilize around 3.5 percent. A lot of the current price increases are driven by former state subsidies that have been removed or reduced.
January was the first month since 2008 that the Argentine state posted a surplus; no month since has yet shown a deficit. Milei's deregulations also seem to be showing some good effects. After rent control was lifted in January, rents dropped by 40 percent in real terms, and the supply of rental properties in Buenos Aires has increased by over 300 percent. The economy is growing more than expected, and a tax cut for big investments has led to several major investments in oil, gas, and mining being launched or planned.
Beyond its issues with currency controls and an overly large welfare system, Argentina is also one of the hardest countries in the world in which to run a business. When the World Bank last calculated all the taxes an average Argentine business would have to pay if they did everything by the book, the total came to 106 percent of profits."Thirty percent of the businesses in Argentina are completely informal," he says. "And it's not just small shops and Uber drivers. In Buenos Aires and other major cities, you can find entire shopping malls that don't formally exist and are only open at night."
[Full article at Reason.com]
January was the first month since 2008 that the Argentine state posted a surplus; no month since has yet shown a deficit. Milei's deregulations also seem to be showing some good effects. After rent control was lifted in January, rents dropped by 40 percent in real terms, and the supply of rental properties in Buenos Aires has increased by over 300 percent. The economy is growing more than expected, and a tax cut for big investments has led to several major investments in oil, gas, and mining being launched or planned.
Beyond its issues with currency controls and an overly large welfare system, Argentina is also one of the hardest countries in the world in which to run a business. When the World Bank last calculated all the taxes an average Argentine business would have to pay if they did everything by the book, the total came to 106 percent of profits."Thirty percent of the businesses in Argentina are completely informal," he says. "And it's not just small shops and Uber drivers. In Buenos Aires and other major cities, you can find entire shopping malls that don't formally exist and are only open at night."
[Full article at Reason.com]
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