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70% of the increase in Leliqs and repos are from its own interests

In order to absorb the monetary expansion due to the fiscal deficit, the Central Bank issues Leliqs and repos. The abusive use of these instruments made that most of their growth is explained by the interest they accrue. With no capacity to absorb the excess of money supply, there is no other option but to order the public sector. (more…)


Two-thirds of the national security budget goes to the AMBA

The riots in Patagonia reveal the disorder under which the public sector operates. The federal government refuses to protect national roads but uses funds to build streets and sidewalks that are municipalities’ responsibility. It also allocates a large part of the security budget to help the metropolitan region (AMBA). (more…)


Welfare provides only a quarter of the poors’ income

There is a widespread belief that the poor live on welfare. But evidence shows that in the total income of the poor, 3 out of every 4 pesos come from labor. Therefore, in order to reduce poverty, it is more important to reduce inflation and improve the quality of jobs rather than continue expanding welfare. (more…)


Macri made “A Bridge to Employment” and it failed

For the last 30 years, temporary reductions in labor costs have been applied to encourage employment. In the 90’s they were called “promoted modalities”, in the previous government “Empalme” and now “A Bridge to Employment”. As long as labor institutions are not modernized, failure is guaranteed. (more…)


Poverty grew higher than in Chile and Uruguay

The INDEC reported that poverty remains as high as in the worst moment of the lockdown. In the Southern Cone, Argentina is the country that suffers the greatest impoverishment of the population. The low public management capacity explains the low effectiveness shown by the growing welfare spending. (more…)


Pension adjustment finances one – quarter of Leliq interest

In the 2019 election campaign, the current President promised to increase pensions with the interest paid to Central Bank bonds (Leliqs). Two years after that promise, the situation is the opposite. The loss in the real value of pensions is paying part of the interest paid by the Central Bank to the Leliqs’ holders. (more…)


There is no way to increase public spending

The Vice-President made public her demand for more public spending. Nominal spending can be increased, but not real spending, because inflation automatically causes it to lose its real value. The Vice-President’s proposal, shared by many Argentines, is at the core of Argentina’s decadence.  (more…)


The important issues were avoided during the primaries

The growing people’s refusal to accept more money expansion forces to increase the fiscal deficit financing through more public debt. This generates an unsustainable trend that increases the urgency of addressing an integral public sector ordering. However, the issue is not on the political agenda yet. (more…)


The special fund for dismissal must be on the employer’s side

The severance pay system discourages job creation because of its unpredictable costs and they are often defined in a labor lawsuit. The proposal to create a special fund per worker to finance the dismissal is less efficient than the alternative of posing it on the employer’s head. (more…)


Argentina has to get out of the co-participation trap

Co-participation (the federal tax revenue share) is a perverse rule that harms the most productive provinces and perpetuates the underdevelopment in the most backward ones. The constitutional mandate to reform it is unfulfillable. That is why it should be eliminated and each province financed with its own taxes. (more…)