Economists, leaders and journalists agree that the main problem in the Argentine economy is in inflation, especially in what is called “contain or delayed” in goods and services regulated or controlled by the state. Rates, health insurance, public transport or fuel are some of the examples we can cite.This type of interventions seeks to compensate for the purchasing power of income, particularly that of wages.If controls or interventions in prices are withdrawn from one day to another, wages must be considerably higher, at least, as to maintain the lean purchasing power they have today.Somehow, All we have employees or we consume goods or services that are worth them to be produced, we enjoy subsidies that they receive, paying lower wages.However, If price release is accompanied by public employment reduction policies, cost freezing and subsidies, labour supply will increase dramatically, consequently, wage recomposition could be postponed.In other words, in the face of a 55% devaluation, the completion of price control programmes and the reduction or elimination of transport and energy subsidies, measures that increase the supply of work, such as the reduction in the model of public workers, the purchasing power of Argentines will be affected very negatively.This situation will in principle be lower in sales, cut in payments chains, higher unemployment and more poverty.Full card for this decay bingo where Argentina comes playing without losing a single match.A card in which your yards are present The lack of interest of genuine investors in our public debt, high inflation rates, very heavy demand in our sovereign currency, fiscal deficit, poverty and indifference.Analyzing the first measures of the economic team of this new government we hear from the minister of the economy that the main problem of Argentina is the fiscal deficit, constituting this the true oringen of all evils.The diagnosis could take part and move away from the real background of the issue.Clearly, debt, inflation and regulations are derived from red in public accounts, but it is essential to understand why the deficit is.There are undeniable obligations inherent in the function of the state within a representative, republican and federal government mode. Safety, education, or health, to report some, or social and labor inclusion, should have sufficient resources, because their budgetary constraints mean greater costs for the future.Simplifying the reality of a country comparing it with the economy of a family can cause us to fall into the fallacy that only consumption can be adjusted instead of income.We must change the point of observation so that instead of expressing that “there is no silver” we seek how to win more.Difficultly, raising taxes, lowering wages or reducing jobs private activity can be benefited and monitor the migration of the public sector.For now, the small promised adjustments relapse more than the people, retirees, workers, entrepreneurs and members of the popular economy who have seen reducing the purchasing power of the currency with which they work at more than 50% in just 48 hours of management and who probably have less sales, fewer jobs and less resources.This management that begins in the foreseen of difficult times, however, emphasized once and again that in this opportunity the effort would make it policy, to which it identified as caste, because it was a minority who enjoyed more beneficial conditions than the rest.None of this was reflected in the first measures.We need to wait and observe how they evolve, both the management and the practical possibilities of the citizens to follow this model, which is uninnovative.We are very much cut off, let us see if good news are presented that propose the enlargement and creation of companies, the hiring of more employees and the opening of international markets where we offer our products with added value.
1/11/2024 - economy-and-finance
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horacio gustavo ammaturo
I am Gustavo Ammaturo. I have a degree in Economics. CEO and Director of infrastructure, energy and telecommunications companies. Founder and mentor of Fintech, DeFi and software development companies. Blockchain Product Designer.
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