Non-Stop Exodus of Multinationals Leaving Argentina...!

Alby

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Hi Dougie,

This was my observation about three or so months ago. This will be post 2001 all over again except I think the movement will be much stronger and larger. Unlike last time when the migration occurred, I think the older generation will encourage their younger generation who is able, to simply go chase a better life and opportunity elsewhere.

I truly believe that everything is being grossly underestimated here. Argentina is going to feel a lot of pain when the dust from COVID 19 starts to clear.
I agree with this. But I also think that the problems the rest of the world faces as COVID 19 drags on (and even should it somehow end reasonably quickly and reasonably well) are being grossly underestimated (and have been, since the start).
 

Redpossum

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"The sky is falling! The sky is falling!"

Argentina is a major producer and exporter of food. Food prices are going to go through the roof-
-and Argentina will recover just fine. This country and these people have been through such crises over and over and over, and Argentina has always bounced back. It's not the end of the world.
 

camberiu

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Argentina has always bounced back.
Indeed it has. It always bounces back, but always to a level a little lower than it was before the crisis. That is how the inexorable decline of Argentina has been taking place over the last 100 years.
Now it is no different. Like before, it will bounce back, just not as high as it was before. And this will go on, and on, and on....
 

antipodean

Registered
Indeed it has. It always bounces back, but always to a level a little lower than it was before the crisis. That is how the inexorable decline of Argentina has been taking place over the last 100 years.
Now it is no different. Like before, it will bounce back, just not as high as it was before. And this will go on, and on, and on....
Absolutely.
Industries like agriculture (or any natural resource) rarely do much for people or the wider economy in this world.
Ownership is limited. Employment is limited to just about enough to plow the fields and drive the trucks to port, increasingly replaced by machinery, and most of those it does employ earn a mere pittance. The added value rarely exists since the raw grains/materials are put on a boat and sent to market to be finished elsewhere, wherever it is cheaper to do so.
In an Argentine context even if agriculture is booming the sad reality is that the country will probably still be plagued by hunger. Already today 1,000,000+ of 3,000,000 porteños live below the poverty line with more than 250,000 destitute persons in CABA since the lockdowns began.
The bill for the damage done keeps getting bigger but the tax base and amount of capital keep getting smaller - a tax on agriculture alone ain`t gonna take 20 million + Argentines out of poverty no matter how amazing the harvest.
 

UK Man

Registered
Absolutely.
Industries like agriculture (or any natural resource) rarely do much for people or the wider economy in this world.
Ownership is limited. Employment is limited to just about enough to plow the fields and drive the trucks to port, increasingly replaced by machinery, and most of those it does employ earn a mere pittance. The added value rarely exists since the raw grains/materials are put on a boat and sent to market to be finished elsewhere, wherever it is cheaper to do so.
In an Argentine context even if agriculture is booming the sad reality is that the country will probably still be plagued by hunger. Already today 1,000,000+ of 3,000,000 porteños live below the poverty line with more than 250,000 destitute persons in CABA since the lockdowns began.
The bill for the damage done keeps getting bigger but the tax base and amount of capital keep getting smaller - a tax on agriculture alone ain`t gonna take 20 million + Argentines out of poverty no matter how amazing the harvest.
I have to disagree regarding the contribution agriculture makes to the economy. I suspect the industry is one of the biggest employers in Argentina. It's not just about blokes ploughing fields. or shooing cattle.
 

antipodean

Registered
I have to disagree regarding the contribution agriculture makes to the economy. I suspect the industry is one of the biggest employers in Argentina. It's not just about blokes ploughing fields. or shooing cattle.
It is surprising considering the scale of the industry here which accounts for around 10% of GDP, but agriculture is less than 1% of all 12,000,000 or so registered workers in Argentina. Industry is around 21% and services are 69%. Most of all registered workers are employed by the government - according to MoL there are in fact only 5,700,000 registered, tax paying, private sector workers in the country out of 45,000,000 inhabitants.

While no doubt agriculture creates a lot of support jobs in the service sector and even industry, higher prices or a booming sector simply do not mean more jobs for the masses and less poverty in this country. The fact that the weak employment stats suggest a lot of work en-negro which is even more concerning since these people don't even have the most basic rights and conditions to suggest society is really benefiting from the sector in a broad manner. In fact, Argentina has regularly featured on international watch lists for child and forced informal labour arising in this sector. Agriculture has not exactly ever stopped in Argentina, hence it is questionable how much further it could go without some serious capital investment to diversify and/ or modernize to be more productive and/or competitive without needing to resort to dubious labour practices to be competitive.
 

UK Man

Registered
It is surprising considering the scale of the industry here which accounts for around 10% of GDP, but agriculture is less than 1% of all 12,000,000 or so registered workers in Argentina. Industry is around 21% and services are 69%. Most of all registered workers are employed by the government - according to MoL there are in fact only 5,700,000 registered, tax paying, private sector workers in the country out of 45,000,000 inhabitants.

While no doubt agriculture creates a lot of support jobs in the service sector and even industry, higher prices or a booming sector simply do not mean more jobs for the masses and less poverty in this country. The fact that the weak employment stats suggest a lot of work en-negro which is even more concerning since these people don't even have the most basic rights and conditions to suggest society is really benefiting from the sector in a broad manner. In fact, Argentina has regularly featured on international watch lists for child and forced informal labour arising in this sector. Agriculture has not exactly ever stopped in Argentina, hence it is questionable how much further it could go without some serious capital investment to diversify and/ or modernize to be more productive and/or competitive without needing to resort to dubious labour practices to be competitive.
The same has be said for the agricultural industry all over the world though. Must be a similar story for most industries I would have thought due to modern technology.
 

Rich One

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Former President Eduardo Duhalde in Feinman's Program Expressed "I believe AF is now Groggy like President De La Rua was " De La Rua resigned before completion of period. Friendly Fire..OMG.
 

antipodean

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Former President Eduardo Duhalde in Feinman's Program Expressed "I believe AF is now Groggy like President De La Rua was " De La Rua resigned before completion of period. Friendly Fire..OMG.
You should have heard what Guillermo Moreno said about him... “Argentina va a tener récord de destrucción de su economía gracias a las decisiones de Alberto Fernández" y "Él es un hombre que gusta de tomar decisiones y ese es el problema: que las toma, no que no las toma."
 
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