Make Argentina Crash Again: On Milei’s Neoliberal Experiment

[MilHojas]

Make Argentina Crash Again: On Milei’s Neoliberal Experiment - The American Prospect

The short-term political boost to Argentine president Javier Milei's fortunes is unlikely to continue, as the familiar cycle of crisis and default looms.

prospect.org

 

[Agribotics]

The money quote:

Sustainable stabilization for Argentina will require a steady nominal exchange rate to anchor prices, combined with selective expansionary policies to revive growth and employment without putting extra pressure on external obligations. In the long run, that can only be done by increasing and diversifying exports, the only consistent way of obtaining dollars to avoid excessive volatility of the exchange rate.

In other words, the only way for a country to become wealthy is for its citizens to create goods and services the rest of the world wants to buy. That's what resource-poor Taiwan and Japan have done and what nanny state Argentina has failed to do since the 1930's.

Trying to make a country wealthy by borrowing or printing money is a fool's errand.