The Perfect Example Of What Happens To a Country When VOTERS are Vehemently Against Austerity Measures: Over 18 million people unable to afford basic needs in Argentina – April 15, 2023,
When writers and speakers like myself talk about shrinking the size of the Federal government, cutting government regulations, and cutting taxes, most people have no idea what we’re talking about.
In fact, writing about shrinking the size of the government is the best way to get on the bad side of MOST PEOPLE. Shrinking the size of the government equates to cutting welfare spending and, most importantly, Getting rid of UNION CULTURE.
Union culture is the JUSTIFICATION of the Welfare State. One of the dumbest things to ever happen to Western nations is labor unions. It can be successfully argued that without labor unions, workers’ rights, workers’ safety etc, wouldn’t exist.
This is true, sort of; individuals fought for those rights, and Labor unions took the credit. I always ask the question, after something is passed into law, what do you need labor unions for?
If workers have legal rights, what’s the point of a labour union? Is there ever a time when the labor union should be dissolved, or is this a perpetual war between employee and employer, which ever increasingly the employer is the GOVERNMENT.
One of the main problems labor unions create is price controls, minimum wages GUARANTEE consumer price inflation. In Argentina, price controls are BUILT into their economy, meaning that as the inflation rate rises, the employees get a raise, and labour unions are very UNFRIENDLY to the private sector, so investing in Argentina is very challenging, and therefore most of the foreign investment in Argentina caters to the affluent, who can afford and prepare for the consumer price inflation.
The economic fix to Argentina on the surface is easy, with Austerity Measures and lots of it, but as Socrates points out, democracy allows ignorant people to vote for their own economic destruction.
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Argentina also has a top-heavy government; their Federal Government has its hands all over the Argentinian economy; making matters worse is the culture of entitlement is very strong in Argentina.
America and Switzerland are different in that State and Canton rights give States the ability to try different ideas, whereas in Argentina and most countries, the Federal Government is the only game in town.
In America, Left Wingers are the majority; however, the Federal government is LIMITED as to its influence on the entire U.S. population, so ideas that are popular in New York are not popular in Texas.
Most people tend to gravitate to areas in which they imagine the government will have more generous WELFARE programs, but financially and economically savvy individuals gravitate to areas that are ECONOMICALLY freer from government regulations.
In America, different cultures are formed, and this allows for the federal government’s influence on the population to be minimal. In Argentina, the culture is uniform in that it thinks Socialism, or a system in which the federal government makes most of the economic and financial decisions for the ENTIRE country, is best.
It’s hard to push back against a culture of entitlement because people who love the idea of a welfare State will argue that, buy not giving the Federal government more power you’re allowing poor people to be EXPLOITED.
This is an argument of low IQ vs. High IQ, security vs. freedom, Big Government vs. limited Government, Socialism vs. Capitalism, and Left vs. Right. Making matters worse, the Left often claims that National Socialism is part of the political Right, when Fascism is actually a Left Wing ideal.
Just because Left Wingers have their own infighting doesn’t mean that National Socialism/ Fascism is not a Left Wing idea. People of higher IQ comprehend that fascism is a left-wing ideal; however, Left-wingers often have an extremely low understanding of economics, and this is why when Left-wingers imagine fascism, they only think of “Nativism.”
National Socialism/Fascism is still a form of or derived from socialism and socialism and capitalism are two very different forms of economics. Limited-Government equates to government having limited influence on economic activity.
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Limited government equates to price and wage controls being ABOLISHED; it also equates to excessive regulations on productivity being abolished; these are just some of the things that would happen if austerity measures were to be implemented to allow Argentina to have a market-friendly economy.
A market-friendly economy attracts capital investment, and investment equates to more FOREIGN holders of your currency. In most latin American countries, foreigners fear hoarding their currencies because, politically, IT’S POPULAR in Argentina for the government to PRINT its currency to pay off ENTITLEMENTS while simultaneously demonizing the PRIVATE SECTOR job creators.
Although Cuba is best known for its agrarian reform and confiscating private property, regulations on the private sector often mirror nationalization. Fiat money especially allows governments to pay for entitlements without equal production.
Money is supposed to be a MEDIUM of exchange, money is nothing more than a convenient form of bartering; however, RULE BY FIAT money allows Federal Governments to redefine money, so instead of you and I exchange one good for another, the government by forcing us to use their money to make a trade can then take their cut to pay off their friends, so that after you and I made a trade we’re both worse off.
Why are we worse off? Because we’re now left with a currency that buys LESS in the marketplace, whereas the government and the people, the VOTERS, voted to give welfare too, get the lion’s share of the money, and are able to buy wholesale while you and I are buying retail.
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If this is confusing you, I’m sorry, but it’s something that’s easier to understand if you comprehend Austrian Economics, which is an economic theory, that most people are disinterested in learning.
Interesting times ahead!