What Will It Take to Rescue Argentina’s Economy?

[Ries]

Noquis may exist- in relatively small quantities, but, mostly are a racist meme. Certainly the Argentine government has paid people not to work, or to stand around at construction sites- just as every government has for the last 2000 years or so. But its a tiny frictional loss, compared to say, Russia, or NYC in the early 1900s. I have been in actually corrupt countries, where the customs guys pilfer your luggage in front of you, where bribes are paid for any government service- and Argentina is nowhere near that. Its perfectly possible to conduct pretty much all government business, as a clueless extranjero, without every paying a bribe in 12 years- I am living proof.

The problem is expecting magical fairies with money, ie, "foreign investors" to fix everything.

Its gotta be an internally generated growing economy- which isnt rocket science- its been done over and over again all over the world for centuries.
The people evading the taxes are not the ones getting paid 4000 pesos a month to not work- its the families that own every phone company, tv station, utility, factory, and big corporation.

Argentina does indeed manufacture and export- but the government discourages it, rather than encourages it.

 

[lunar]

... instead of misquoting me to gain some political point .

This was a direct quote.

... business loans with low interest are a excellent way of stimulating the economy and creating employment ...

Why do businesses need loans if according to you nobody buys anything?
Well, nope, here is one possible business opportunity: take a 2% loan from the government, lend this money back to them at 80%. Profit!

Noquis may exist- in relatively small quantities, but, mostly are a racist meme.

Really? What race do they belong to?
Do people who put "Made in Argentina" label on a chinese TV make anything productive?

 

[perry]

This was a direct quote.



Why do businesses need loans if according to you nobody buys anything?
Well, nope, here is one possible business opportunity: take a 2% loan from the government, lend this money back to them at 80%. Profit!



Really? What race do they belong to?
Do people who put "Made in Argentina" label on a chinese TV make anything productive?

How much does the government pay for Noquis per year ?

I am sure it is much less than the 20 billion wasted on one month just to defend the peso . All the 10 billion just to raise some subway lines in the Capital Federal . Who recieved all this money ?

 

[lunar]

Who recieved all this money ?

So, there actually is something you don't know. I am kind of surprised.

 

[perry]

So, there actually is something you don't know. I am kind of surprised.

No I do not know a lot and am constantly learning . Can you please enlighten me with your wisdom?

 

[deadOA]

... tax the people who are making money ...

Wooo. @Ries: You will be labeled "Socialist" for thinking that.
Gone are the days of Henry Ford setting a great example of what a "Risk Taker Capitalist" should be.

Nowadays "Capitalists" not only pay ZERO on a $150 billion empire, but also receive payments as tax credits. Adding insult to injury are guaranteed freebies handouts when they fail.

 

[Ries]

Wooo. @Ries: You will be labeled "Socialist" for thinking that.
Gone are the days of Henry Ford setting a great example of what a "Risk Taker Capitalist" should be.

Nowadays "Capitalists" not only pay ZERO on a $150 billion empire, but also receive payments as tax credits. Adding insult to injury are guaranteed freebies handouts when they fail.

Henry Ford is an interesting example- for instance, he set up assembly factories around the world, to do the 1920s equivalent of slapping Industria Argentina stickers on chinese tvs. In 1917, he opened one in La Boca. They assembled KDK's- knockdown kits, which means they just screwed together parts made in Detroit- the same way factories in Patagonia screw together microhondas from china.

and I am a socialist.

 

[Joglide]

Argentina does some things brilliantly well: its culture and artistic production is simply superb. It has a wonderful tourism menu that could be expanded. It makes wonderful primary products including beef, soya and wine which are high quality. Some of its artisan industries are very good and the servicing of the IT industry is effective. Although its banks are antiquated in their methods I think they could become a generator of better financial and insurance services. Some manufacturing and clothing are good. There are profound structuiral, institutional and cultural problems that need to be addressed but perhaps most obviously this society is simply polarised. I talk to Peronists who believe that CK is whiter than Mother Teresa and could never be guilty of any misdeamour and you can find Marcri supporters who justify the military terrorism of the junta years as necessary. What is clear is that neither Peronism nor military oppression has resolved but rather deepened some of the profound difficulties of finding a common discourse as Argentinians. What is needed is a cultural and economic nationalism that brings people together and offers transparency in the distribution of income and tax. Unless there is trust then fundamental reform remains elusive. Just a view.