Macri's Challenge

[sergio]

El Queso I agree with most of your comments. Maybe I wasn't clear. By saying that Macri needs to do something for the poor I was not referring to handouts but to a real initiative that gets to the root of poverty. Encouraging and facilitating small businesses would be a start. Better primary and secondary education with much more focus on English and computer skills would help. Real progress in reducing corruption and making government more transparent. Some job training, either in high school or post secondary, a few public works projects that would both provide employment and improve the infrastructure etc. A country like Argentina can't use the US as a model. The US model just doesn't suit the needs of a country like Argentina but the social democratic model which comes closer to what Argentina needs requires a level of public cooperation and responsibility that is lacking in Argentina. Changing this mentality will take time but the process must start. I agree that a reasonable system with appropriate laws and manageable taxes will set the tone. The government must start to work WITH businesses (especially small and medium size businesses) to help them to prosper and NOT work against them as is the case now. Big business, however, must operate more honestly. This means an overhaul of regulations and taxes. My point was that Macri cannot do EVERYTHING for the benefit of the wealthy while ignoring the needs of the poor and the middle class. My fear is that he will serve the interests of a small sector of the country and wind up thrown out of office.

 

[Pensador]

El Queso I agree with most of your comments. Maybe I wasn't clear. By saying that Macri needs to do something for the poor I was not referring to handouts but to a real initiative that gets to the root of poverty.

That would be wonderful but that is impossible because employees in Argentina can take an employer to the wood shed so you have to keep them in poverty to protect your business. Even better do not hire anyone but family and keep the business small to limit the risk. Thus an economic cycle of loosing decade after decade for many decades now. Want to fire an Argentino you better be ready to pay and they know it. Want a year off, force your employer to fire you and they know it. Sorry it is Argentina unless things change radically nothing is going to change lets hope the radical change is in progress and the employees find that they are no longer entitled to such a legal advantage. Until then they are going to stay poor.

 

[sergio]

That would be wonderful but that is impossible because employees in Argentina can take an employer to the wood shed so you have to keep them in poverty to protect your business. Even better do not hire anyone but family and keep the business small to limit the risk. Thus an economic cycle of loosing decade after decade for many decades now. Want to fire an Argentino you better be ready to pay and they know it. Want a year off, force your employer to fire you and they know it. Sorry it is Argentina unless things change radically nothing is going to change lets hope the radical change is in progress and the employees find that they are no longer entitled to such a legal advantage. Until then they are going to stay poor.

True and it's a vicious circle. If employers had the power they have in the US they would use it mercilessly. So what is the solution? A change of thinking, a change in the culture is needed but not lissez faire capitalism. Perhaps some changes to labor law can be made for shorter term jobs that would give people experience but not protect them forever? Are the Macri people discussing these issues with a mind to serious long term reform or are they thinking of short term solutions to benefit wealthy landowners and corporations? This worries me. This is the moment for radical rethinking of the way the country operates and for serious plans for change.

 

[Pensador]

True and it's a vicious circle. If employers had the power they have in the US they would use it mercilessly. So what is the solution? A change of thinking, a change in the culture is needed but not lissez faire capitalism. Perhaps some changes to labor law can be made for shorter term jobs that would give people experience but not protect them forever? Are the Macri people discussing these issues with a mind to serious long term reform or are they thinking of short term solutions to benefit wealthy landowners and corporations? This worries me. This is the moment for radical rethinking of the way the country operates and for serious plans for change.

Agreed I but think some balance in employee rights and legal issues could have some impact on the level of salaries etc. Which could in turn result in some economic benefits but as you mention this is just one area of many in the economy that needs changes.

 

[Noesdeayer]

TwentyThousandRoads.
"Now there are no international obligations to worry about." ? I don't think so.
What about the agreements with Russia and especially China? Macri is going to take a closer look at those.
.Irma Arguello of NPS Global an Argentine nuclear nonproliferation organization for global security wrote an editorial in Dec.21's La Nacion specifically requesting that the agreements with Russia and China be studied and ,if necessary,modified.
Sergio:
Right you are. Trickle down does not work.what we need in Argentina is bottom up.From the employee base up.

 

[PaulBee]

Improving the rental laws, so that landlords can kick out deadbeats quickly would negate the need for
a guarantor. That would help a lot, as would a faster justice system, so that contracts have some validity.
Good postal service would boost the economy too, with so many people ordering products online now.

 

[EdRooney]

One of the huge factors in the antiquated rental laws that no one seems to talk about is their effect on inflation. If everyone-- especially vendors, stores, etc.-- has rental contracts with 25%+ scheduled annual increases, it's pretty bleeding hard to get inflation down below 25%.

If you are a merchant, you have to raise prices to keep up with rental costs, and vendor costs, and salaries for employees-- who likewise have their own 25% rent increases to pay. It's a circle of madness.

 

[Pensador]

One of the huge factors in the antiquated rental laws that no one seems to talk about is their effect on inflation. If everyone-- especially vendors, stores, etc.-- has rental contracts with 25%+ scheduled annual increases, it's pretty bleeding hard to get inflation down below 25%.

If you are a merchant, you have to raise prices to keep up with rental costs, and vendor costs, and salaries for employees-- who likewise have their own 25% rent increases to pay. It's a circle of madness.

I will never forget the first time I had that in a contract I was like who in the world raises rent 25% a year are you insane. Some years later I came to understand how insanity had become an integrated and calculated factor in Argentinian economics.

 

[ElQueso]

Very good point EdRooney - I bitch about the garantias so much that I often forget about the inflation in the contracts.

It's so bad, in fact, that I can readily get the owners of an apartment to be paid in dollars, but I have to explain to them and convince them that the reason for this is so that i don't have to pay inflation built into the contract - they want to put the inflation clause in even with dollars. The urge to have a huge increase in the rental rate is so strong...

 

[Rich One]

Very good point EdRooney - I bitch about the garantias so much that I often forget about the inflation in the contracts.

It's so bad, in fact, that I can readily get the owners of an apartment to be paid in dollars, but I have to explain to them and convince them that the reason for this is so that i don't have to pay inflation built into the contract - they want to put the inflation clause in even with dollars. The urge to have a huge increase in the rental rate is so strong...

Question?? If the Dollar stays steady for the year how would the landlord protect himself against a 30 % plus inflation in pesos..? Worse case if the Dollar goes down??

Should be pesos with adjustment for inflation or if in dollars ajustable % not to exceed the peso inflation...?