May 21, 2022 10:17 pm

Before it is too late

There is a popular culture saying that “building takes a long time, but destroying takes minutes”.

Argentina is on the verge of collapse. In an extreme situation, product of economic, political and institutional mismanagement not only in recent years, but in recent decades, where short-term results were privileged, instead of long-term public policies and the generation of wealth.

If one reviews the public and private economic indicators, today we have an economy with more stocks, more export restrictions, more regulations to produce, permanent rule changes, more tax pressure, more informality, further away from the world and more poverty.

In the economy, anything can be done except avoid the consequences of the policies that are applied, and in recent weeks, in the midst of a heat wave, all of us Argentines have witnessed, once again, the result of the lack of investment, reflected in power cuts and poor provision of drinking water. A concrete example that low prices in services and populist policies do not work anywhere in the world.

There are no magic recipes; without acceptable prices, there is no investment and without investment, there are no appropriate public services. Of course, you have to be patient until you see the results, even more so in a broken electrical system, without education to “take care of energy” and with a very bad user service for years.

This situation of water stress and heat wave also exposed the urgent need to modify the tax scheme that today generates disincentives for the production sector. Because the State is only a “partner” in the profits of the field, that is why now that the drought and the heat wave have already generated significant drops in profitability indicators for producers, losses in many cases, it is imperative to mitigate the tax burden for all productive sectors, before it is too late.

The lack of management and a comprehensive government program are bringing the country to an extreme situation, far from the developed countries of the world and dangerously close to populist dictatorships such as Nicaragua, Venezuela and Cuba.

Argentina is one of the few countries that shows a long decline, a scenario that could have been aggravated if it had not been agreed with the IMF and the country had entered into default, as preferred by part of the Frente de Todos. However, it still remains for the Executive Power to explain how it intends to achieve the macroeconomic goals that it announced on the morning of Friday, January 28, because, until now, they are only intentions, which, if not fulfilled, would mean an even deeper setback.

But, beyond the merely economic and financial, Argentina’s decline is also notorious in other areas such as education or citizen security. To mention another specific example, in Rosario, 2021 was the year with the most homicides in the last 6 years. The fight against drug trafficking and mafias that began in 2016 was abandoned by Kirchnerism. A situation that is repeated throughout the country with the increase in crime and a greater presence of drug gangs.

In short, to create and build you need time and effort, but to destroy a second and disinterest. Surely, many of the public policies that must be taken are not nice measures or those that “sound nice”, but at the end of the road, they were the effective ones and those that gave results in the countries that came forward and reduced poverty. It’s time for a change of course, before it’s too late.

JxC National Deputy and Vice President of Pro Argentina

Comments (0)

Leave a Reply

Your email address will not be published.