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National



Only 2% of the army’s budget is destined to investments

The tragedy of the missing submarine is related to the decline suffered by the armed forces after its loss of legitimization due to the military dictatorship. But many of these causes are common to the rest of the public sector. Putting spending in personnel as an absolute priority in the management of the public funds means that inside sectorial interests are above the general interest.

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US$ 3,3 Billion in subsidies to Rio Turbio coal mine

The evidence that the subsidies to the Río Turbio coal mine were used in an obscure way are more than 10 years old. The opportunism of the Judicial System and a large part of the ruling class, allowed billions of dollars to be squandered and diverted to spurious ends. Given this failure, it is pertinent to warn that the solution is not to put honest and competent officials to administer the coal mine but to use public funds to reconvert the workers who were deluded with an unrealistic project.

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Women’s hourly wage is 3% higher than men’s

Labor discrimination against women is a reason for concern. Evidence shows that the phenomenon is not explained by an undervaluing of women’s labor contribution, but by the atavistic tradition of assigning women central roles in domestic tasks. For this reason, gender equity will not be achieved only through new labor regulations. It is also necessary to promote a cultural change that distributes more equitably the roles within the household.

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1 in 4 workers earns less than the legal minimum wage

An agreement was not reached when discussing an update in the minimum legal wage. The problem is not the lack of consensus but the low level of productivity which makes the minimum wage an ineffective tool to fight poverty. Instead of insisting with sterile controversies, the Minimum Wage Council should address the modernization of labor and educational institutions.

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Taxes represent more than 100% of the profits in a shop

The decline and possible dismantling of an icon of illegal trade, “La Salada” market, is a very positive change. But for it to be sustainable, in addition to police action, there is the need of a reform in the tax system and the modernization of the state in order to make it more accessible to the general population. This is the only way people will be able to work and make a living in legal trade, and not relying on extortionists and criminals who profit from informality.

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Taxes represent more than 100% of the profits in a shop

The decline and possible dismantling of an icon of illegal trade, “La Salada” market, is a very positive change. But for it to be sustainable, in addition to police action, there is the need of a reform in the tax system and the modernization of the state in order to make it more accessible to the general population. This is the only way people will be able to work and make a living in legal trade, and not relying on extortionists and criminals who profit from informality.

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The arbitrary managment of pensions maintains inequalities

Given the evidence of irregularities in the massive allocation of non-contributory pensions, the government started a revision process that generated much controversy. When a pension is granted to someone who is not disabled, they are automatically condemned to a chronic dependency of welfare, since they are not allowed to work in the formal labor market. Instead of interrupting the revision, it should be continued accompanied by effective employment policies.

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Rio Turbio serves as an example of Donald Trump policies

The decision of the US president to withdraw his country from the Paris Agreement about the mitigation of global warming has generated justified criticism around the world, including Argentina. But in Argentina, there are internal policies that respond to the same logic, are justified by similar motives and cause enormous damage. An illustrative case is the use of public funds to subsidy the company Yacimiento Carbonífero Río Turbio.

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1 out of 4 people do not declare their income to INDEC

The destruction of the national statistical system was extremely grave and its reconstruction will require long time and lot of effort. During the transition, the data produced by INDEC has limitations. A specific example is the large share of people who do not report their income in the Permanent Household Survey. The high and heterogeneous number of incomplete surveys requires extreme care in the analysis of important and sensitive issues such as the incidence of poverty.

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Poor women double labor inactivity

The Universal Child Allowance is not having major impact on mother’s decision to work. This is one of the main weaknesses of this social program since, by not stimulating labor participation, it reduces the chances of overcoming poverty. Social progress and gender equality require that poor women overcome the “inactivity trap”. To achieve this goal, there need to be a deep rethinking of educational and childcare policies. 

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