January 24, 2022 2:31 pm

Kings of the broadcast, wizards of poverty

Unlike philosophy and science, which deal with causes, magic preaches truths, without resorting to the principles of logic or physics to explain its conclusions. Of ancient Indo-European roots, “magh” is associated with the ability to create illusions, unrealities, deceptions, tricks and sorcery. In 2015, Cristina Kirchner coined his memorable phrase “It wasn’t magic”, to explain – although she did not say so – that it was soy and not an illusion, trick or sorcery, which financed the exponential increase in spending during her tenure. At levels that nobody could, later, reduce.

In the current Argentine crisis, the government of Alberto Fernandez It has been unable to structure a univocal discourse, which calls for Argentina to stand up, after a program that puts things in order and attracts investment. Just a story, monotonous speeches, listing other people’s faults and staring back, while the country falls in a corkscrew.

The different areas of the Government are divided between sectors of the heterogeneous Front of All, whose objective is to consolidate the power of its different factions, through the control of discretionary “boxes” that allow the irrational management of public resources to which we are accustomed. Everything is militancy, promises, chicanes, stands and stadiums.

In an experience with little world history, it is preferred to resort to so-called “poverty wizards” and to chase away those who know how to create genuine wealth. Unlike in 2015, this time we can say that “it’s magic”, but in the opposite direction. The wizards of 2022, instead of transforming low-grade metals into gold, they make the middle sectors poor and the poor indigent, humiliating them with bags, cards and dining rooms. They do not know, or they pretend to ignore, that poverty leads upwards and not downwards. Not with price controls, traps or specific aid, but by increasing the purchasing power of wages, so that prices and rates are achievable with the normal remuneration of work, as in our neighboring countries. Not by increasing nominal wages or with social plans, but by strengthening the value of the peso.

Every month inflation increases. And every month, due to this increase in prices, more people cannot cover with their income what they need for a barely decent subsistence. Their tickets to pay the monkey are never enough and they are the biggest victims of the inflation tax.

The “magicians of poverty”, experts in moving chips on the board of positions of agencies and municipalities, only conceive disjointed alternatives, which imply more emission and greater hardship for those who cannot protect themselves from the inflationary escalation.

There is no measure that the “magicians” propose that does not imply higher inflation or discourage investment.

The fiscal deficit, originated in economic imbalances, forces to multiply social subsidies, to alleviate its own consequences. The rate freeze designed by Julio de Vido It has become a snowball with a difficult solution and uncertain segmentation, in addition to leaving many families in the dark, in full parties. Contributions to public companies, such as Aysa (Malena Galmarini); Aerolineas Argentinas (La Cámpora); Argentine Mail (La Cámpora); IEASA, ex Enarsa (LNG imports, also La Cámpora); Cammesa (electricity subsidies, La Cámpora); Rio Turbio Carboniferous Deposits; Radio and Argentine Television, among others, spend about 16 billion dollars a year on the Treasury.

Instead of reducing these expenses, the new “magicians” invent programs to alleviate the same misery that these deficits cause, through programs with ingenious names and dire results, since they are based on greater monetary issuance.

Empower Work? More funds for boxes of The field, like PAMI or ANSeS? More money for the Secretariat of Social Inclusion? More emission, more inflation, more poverty. More resources for the Ministry of Territorial Development and Habitat? More emission, more inflation, more homeless people. 25,000 more public employees in the Province of Buenos Aires? More issuance, more inflation, less private employment. Program “Now 12”? The last installments are paid by the poor, not the buyers. “More Culture” Program? More emission, more inflation, more ideology, less culture.

Two pensions of Cristina Kirchner, for $ 2,500,000 per month? More issuance, more inflation, more poverty for retirees, more disbelief in politics. Twelve official flights to El Calafate, for $ 100,000? More emissions, more inflation, more poverty for ordinary people, more citizen outrage.

In a context of mistrust, capital flight and financial suffocation, trying to stabilize by increasing an already unsustainable fiscal pressure implies weakening those who must sustain increasing spending. Ultimately, instead of higher revenue in real terms, there will be more issuance, more inflation, and higher poverty.

It would be interesting if the referents of the popular economy who support the Government, cut streets and blame the IMF, challenge those who collect these pensions, those who manage those funds, those who hire, travel, appoint, without any control. Therein lies the origin of inflation and the snake egg of poverty.

Believing that a “rebound” in the economy is growth is an illusion that Martín Guzmán, the magician from Columbia, tries to arouse to justify his mediocrity. Growth is not a natural phenomenon, nor is it part of a regular cycle, as day follows night. Tonight, our night, it can go on and grow even darker, as the festival of spending, broadcasting, and misrule continues. Even if no one penny was owed.

Defending the national interest by calling for battles that will end in defeats for the entire Nation is not an innocuous populist measure. As they were not Leopoldo Galtieri after occupying the Malvinas, or that of Adolfo Rodríguez Saá December 2001, when it announced that it would create a million jobs with the funds saved by not paying the foreign debt.

“It wasn’t magic.” That should be said by the leader who has the capacity, the talent and the political support to change the current course of Argentina, on a genuine basis. We have already lived through the Rodrigazo of 1975, the hyperinflation of 1989 and the abandonment of convertibility in 2002, to have enough experience. Enough of casuistic measures and patches that fuel inflation. Have to blame the IMF To politically justify an adjustment program is another perverse solution. Opting for that path of pseudo foreign impositions looks attractive for the populist discourse, but it will imply that the Government carries a whole social cost that it would be better able to take advantage of as a generator of confidence in pursuit of capital inflows, new investments, generation of genuine employment and strengthening the currency. Y If we fall into “default” for believing in magic, no wizard king will come to our aid.


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