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Antonio - Whats goin on with Argentina?
centermass556 Posts: 3,618 Senior Member
I Was gonna ask whats going on with your neighbors..But that is not exactly a correct statement. But, at any rate...Whats the more local scoop on the melt down in the land of Sliver? I didn't know they were on a down slope trajectory until I saw the news this week about riots and the president fleeing. You see any chance of them turning it around?
"To have really lived, you must have almost died. To those who have fought for it, freedom has a flavor the protected will never know."
Problem for them isn't uncommon to the region, but it's even worse for them considering the huge natural resources they have. Basically they're swamped by corruption, worsened by the fact that the last 70 years or so a leftist populist political party called Peronismo (For a former president, Juan Peron) has hugely influenced the govenrment and when in power applied all the classic recipes to keep the populace happy (Subsides, welfare, state-run businesses, private entrepreneurship taxing, etc. etc.) while dilapidating the national budget in corrupt infrastructure schemes and so that only benefited the party and their allies.
That has left the state finances in a sorry situation that someone had to fix, and that means harsh economic measures to sincere services tariffs, cutting social programs spending, reducing the size of bureocracy by firing excessive employees, etc. Current right-lined president Macri vowed to do that while prosecuting former Peronist administration for huge and evident corruption scandals that even went international (Specially related to Brazilian construction companies) and involved serious crimes like money laundering and even murder.
Of course taking such hugely needed "fat trimming" measures is hugely impopular, specially among those who benefit from the state of things and the poor who either depend on such help or even became used to get help in exchange of nothing but votes.
Political enemies of reforms and the current administration are using popular unhappiness to their purposes and that's all the fuss about, with threats of unions to strike and popular unrest. Basically it's a push of criminals disguised as usually leftist politicians to recover their share of the national income no matter what....pretty much the same that has thrown Venezuela into the sorry situation it's suffering right now.
Economic measures taken were needed; country was literally falling apart thanks to the Peronists. In 2013 we went there with the Chilean in-laws to ski and some friends of my BIL with properties both sides of the border were making good money by literally smuggling home appliances (Like TVs, laptops and so) and clothing that were scarce and expensive in Argentina due to the import restrictions and artificial currency interchange rates imposed by the government that was trying to hoard Dollars by strict controls.
Pretty much the same history of most S.A. countries....so sad.
If not for being far from my beloved sea and having awful gun laws, I'd probably ponder moving to Santiago, specially considering wife's a citizen (So are the twins) and that there are few migrant restrictions for fellow S.As.
Venezuela has been literally taken over by an armed criminal gang disguised as the socialist party, and sadly such people will only be removed by force, probably with big loss of civilian lives. Meanwhile, most people who put them in power is "enjoying" a 5-digit yearly inflation and controlled/state-ran exchange & production of currency and goods....been there in the late '80s and it's NO fun at all!
Venezuelan economic refugees have flooded us, with over 100K arriving in the last year, and all they share the same common history: They worked in businesses as employees and managers, or owned small businesses, but due to the state-imposed artificial exchange rate and foreign currency, they ran out of money to import machinery or goods to keep producing; rampant crime drove them from their places of work, and corrupt bureaucracy made them impossible to keep functioning jobs, thus the most productive layer of their society, that is educated, craft-skilled middle class and small entrepreneurs from 18 to 50 is fleeing the country and leaving a growing void that only worsens the situation.
At least all the cases I've seen (And suffered) of this kind of crisis in the region came from socialist, "progressive" recipes applied by an extremely corrupt net of politicians that disguised as "social avengers" will hold on to power as long as they can while making personal fortunes (Like the Kitcheners did in Argentina in the last decade). we had the same problem in 1985-1990 when a leftist government following a leftist military dictatorship tried to apply economic measures that chocked private initiative and plunged our economy into a yearly 6-figure inflation rate!
Only a right-winged government that took HARSH corrective measures was able to correct this huge mess while fighting one of the most violent terrorist band the world have seen (Pol Pot style)
It does sound eerily familiar! Will be waiting for Alpha's response.