2 ms·

What I don't get is why Argentina's economy has so much problems and inflation compared to Brazil, what is it they are doing differently? Why don't they do what

What I don't get is why Argentina's economy has so much problems and inflation compared to Brazil, what is it they are doing differently? Why don't they do whatever it is Brazil is doing to be stable?

deleted 3y ago
[deleted]
matheusmoreira 3y ago
Don't be fooled. Brazil may seem stable right now but the future's not looking too good. Government spending went through the roof this year. To me it seems like the only thing keeping the country afloat is the monstrously high interest rate. It's only a matter of time before they get rid of that as well. Brazil suffered many times the exact same hyperinflation Argentina now faces. We have gone through several currencies now. If you search HN for Brazil, one of the top posts is about the creation of the real and how they convinced the population that this time it was somehow going to be different. https://news.ycombinator.com/item?id=1757716 https://news.ycombinator.com/item?id=1757716 The real is merely 30 years old and has already inflated about 1100%. 1 BRL@1994-07 is about 12 BRL@2023-10. Somehow salaries don't seem to increase as much.
LastNevadan 3y ago
I'm no expert on the topic, but I think that Argentina has more of a tendency toward socialist economic policies. Argentina is especially known for Juan Perón [1], who implemented a lot of socialist policies that were quite popular with the working class but were not generally helpful for Argentina. [1] https://en.wikipedia.org/wiki/Juan_Per%C3%B3n https://en.wikipedia.org/wiki/Juan_Per%C3%B3n
- matheusmoreira 3y ago
  Brazil has the exact same unfortunate tendency. Hell there's a literal socialist in the presidency right now and countless others in power. President fancies himself the creator of some kind of latin american soviet union.

2 ms·

What I don't get is why Argentina's economy has so much problems and inflation compared to Brazil, what is it they are doing differently? Why don't they do what

by morkalork 3y ago

deleted 3y ago
[deleted]
matheusmoreira 3y ago
Don't be fooled. Brazil may seem stable right now but the future's not looking too good. Government spending went through the roof this year. To me it seems like the only thing keeping the country afloat is the monstrously high interest rate. It's only a matter of time before they get rid of that as well. Brazil suffered many times the exact same hyperinflation Argentina now faces. We have gone through several currencies now. If you search HN for Brazil, one of the top posts is about the creation of the real and how they convinced the population that this time it was somehow going to be different. https://news.ycombinator.com/item?id=1757716 https://news.ycombinator.com/item?id=1757716 The real is merely 30 years old and has already inflated about 1100%. 1 BRL@1994-07 is about 12 BRL@2023-10. Somehow salaries don't seem to increase as much.
LastNevadan 3y ago
I'm no expert on the topic, but I think that Argentina has more of a tendency toward socialist economic policies. Argentina is especially known for Juan Perón [1], who implemented a lot of socialist policies that were quite popular with the working class but were not generally helpful for Argentina. [1] https://en.wikipedia.org/wiki/Juan_Per%C3%B3n https://en.wikipedia.org/wiki/Juan_Per%C3%B3n
- matheusmoreira 3y ago
  Brazil has the exact same unfortunate tendency. Hell there's a literal socialist in the presidency right now and countless others in power. President fancies himself the creator of some kind of latin american soviet union.