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There's a saying in Argentina: “Nothing changes in years, but everything changes in a day” It’s still too early to make definitive statements about Milei’s gove

by wslh 2y ago

There's a saying in Argentina: “Nothing changes in years, but everything changes in a day” It’s still too early to make definitive statements about Milei’s government. However, for those unfamiliar with Argentina, it’s worth noting some key realities under this so-called "libertarian" administration: the USD/ARS exchange rate remains controlled, a nominee presented by Milei to the Supreme Court is widely regarded as a highly corrupt judge (in the Gotham City way), and similar contradictions abound [0]. Milei is undoubtedly a skilled influencer. On a more practical note, consider this: if your software company needed a few laptops or notebooks to operate, you were previously limited to importing them by courier with a cap of USD 1,000, which was only recently increased to USD 3,000 a few months ago. This is one Apple powerful notebook, including taxes. When it comes to managing inflation, certain strategies or "tricks" are often employed: inducing a recession, withholding increases in retirement benefits, and encouraging carry-trade practices [1]. In this binary world it is important to highlight that the previous governments were terrible. [0] https://www.cato.org/blog/mileis-key-pending-task-ending-argentinas-currency-controls-part-ii https://www.cato.org/blog/mileis-key-pending-task-ending-arg... [1] https://www.investopedia.com/terms/c/currencycarrytrade.asp https://www.investopedia.com/terms/c/currencycarrytrade.asp

augusto-moura 2y ago
Interesting that we have the same saying in Brazil. Latin America countries are very similar indeed
- wslh 2y ago
  Yes, there are similarities among Latin American countries. However, beyond the shared saying, Argentina's trajectory has been notably different, especially when compared to Brazil [1]. It’s important to emphasize that Brazil has developed robust industries, while Argentina has not achieved that level. Argentine industries have historically been prebendaries, relying heavily on state support, subsidies, and protectionist policies (e.g. corruption) rather than fostering competitiveness or innovation. This dependency created a system where industries benefited from privileges granted by the government, often at the expense of broader economic efficiency and sustainability. [1] https://datacommons.org/tools/visualization#visType%3Dtimeline%26place%3Dcountry%2FARG___country%2FBRA%26placeType%3DAdministrativeArea1%26sv%3D%7B%22dcid%22%3A%22Amount_EconomicActivity_GrossDomesticProduction_Nominal%22%7D https://datacommons.org/tools/visualization#visType%3Dtimeli...
  - Yoric 2y ago
    To confirm my understanding: weren't protectionist policies (e.g. corruption + clientelism) pretty much enshrined pillars of Peronism?
    - wslh 2y ago
      It is true that Peronism is often associated with corruption, clientelism, and populism. However, I would argue that corruption transcends political ideologies and affects the entire political (and social) spectrum in Argentina. Using a satirical analogy, I’d describe Peronism as the "Tesla of corruption" innovative and deeply ingrained. What is particularly "interesting" about corruption in Argentina is its complexity: it’s not just about taking bribes but involves an extensive and deep-rooted system. Corruption often becomes intertwined with policies, blurring the lines between governance and malpractice. For example, companies like Samsung and others assemble electronics in a free-trade zone in Argentina, yet the final product prices are often double the international market price. This illustrates how policies intended to boost local production can become vehicles for inefficiency and potential misuse. While Peronism has historically been associated with the country's decline, I don't believe it fully explains complex and multifaceted causes of Argentina's struggles until the XXI century.
      - toastercat 2y ago
        > I would argue that corruption transcends political ideologies As someone whose parents left Latin America a long time ago, this is why I'm still deeply skeptical of whether Milei's future will be a rosy one. Ideologies (libertarianism, communism, ancaps, etc) always seemed flimsy so long as there are mechanisms available for widespread abuse.

by wslh 2y ago

augusto-moura 2y ago

Interesting that we have the same saying in Brazil. Latin America countries are very similar indeed

wslh 2y ago
Yes, there are similarities among Latin American countries. However, beyond the shared saying, Argentina's trajectory has been notably different, especially when compared to Brazil [1]. It’s important to emphasize that Brazil has developed robust industries, while Argentina has not achieved that level. Argentine industries have historically been prebendaries, relying heavily on state support, subsidies, and protectionist policies (e.g. corruption) rather than fostering competitiveness or innovation. This dependency created a system where industries benefited from privileges granted by the government, often at the expense of broader economic efficiency and sustainability. [1] https://datacommons.org/tools/visualization#visType%3Dtimeline%26place%3Dcountry%2FARG___country%2FBRA%26placeType%3DAdministrativeArea1%26sv%3D%7B%22dcid%22%3A%22Amount_EconomicActivity_GrossDomesticProduction_Nominal%22%7D https://datacommons.org/tools/visualization#visType%3Dtimeli...
- Yoric 2y ago
  To confirm my understanding: weren't protectionist policies (e.g. corruption + clientelism) pretty much enshrined pillars of Peronism?
  - wslh 2y ago
    It is true that Peronism is often associated with corruption, clientelism, and populism. However, I would argue that corruption transcends political ideologies and affects the entire political (and social) spectrum in Argentina. Using a satirical analogy, I’d describe Peronism as the "Tesla of corruption" innovative and deeply ingrained. What is particularly "interesting" about corruption in Argentina is its complexity: it’s not just about taking bribes but involves an extensive and deep-rooted system. Corruption often becomes intertwined with policies, blurring the lines between governance and malpractice. For example, companies like Samsung and others assemble electronics in a free-trade zone in Argentina, yet the final product prices are often double the international market price. This illustrates how policies intended to boost local production can become vehicles for inefficiency and potential misuse. While Peronism has historically been associated with the country's decline, I don't believe it fully explains complex and multifaceted causes of Argentina's struggles until the XXI century.
    - toastercat 2y ago
      > I would argue that corruption transcends political ideologies As someone whose parents left Latin America a long time ago, this is why I'm still deeply skeptical of whether Milei's future will be a rosy one. Ideologies (libertarianism, communism, ancaps, etc) always seemed flimsy so long as there are mechanisms available for widespread abuse.