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2 out of 3 new poor were generated in the Conurbano

The 2020 lockdown generated a sharp increase in poverty, highly concentrated in the Conurbano area. This is a strong caveat of the unfeasibility of a second lockdown. But, above all, it warns of the political risks underlying in the wider poverty gaps between the Conurbano and the rest of the country. (more…)

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Employment recovery will come through informality

The pandemic deepened old labor problems. Those who suffered the most were informal workers. With greater flexibility in people’s mobility, some of these jobs are recovering. But the secular trend of not generating good quality jobs continues. (more…)

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Capital income tax is not high in Argentina

The project to increase corporate income tax is criticized because it is said that it will scare off investment. Compared to other countries, the high tax burden is not due to corporate income tax but to employers’ contributions. The way to lower them is not as the president announced. (more…)

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Ordering the state is neither right nor left-wing

The public sector degradation is at the root of Argentina’s economic and social decline. A well-organized public sector is not an ideological issue. It is a prerequisite for sound public policies, regardless of their right or left-wing political orientation. (more…)

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The income tax should not be changed

The government and the opposition are reportedly agreeing to reduce the incidence of the income tax. Meanwhile, taxes that punish the most underprivileged are maintained. Having such an unfocused and opportunistic agenda is a guarantee of deepening economic and social decline. (more…)

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The international prices boom is not enough for Argentina

Historically, the Argentine economy is very sensitive to the international context. However, the economic disaster caused by the fiscal disorder is so deep that the current bonanza is not enough to reverse the decay. Another demonstration that the state’s reordering is urgent and inevitable. (more…)

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There are many other cases of abuse, such as VIP vaccination

Favoritism in access to the vaccine caused a lot of irritation. But it is not an isolated incident. The rule in the public sector is civil servants using power to favor relatives and friends. Still more prominent as an entrenched practice –and one much more harmful to the state– are favors appointing new public employees. (more…)

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In advanced countries, there is no income tax floor

Argentina’s problem is not the political rift between Kirchnerismo or anti-Kirchnerismo, but the consensus around mistaken ideas. One of them is a strong belief that salaried workers and pensioners should not pay income tax. In well-organized countries, most of the population pays income tax. (more…)

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The quantity of money increased by 35% above inflation

Monetary expansion to finance the fiscal deficit in 2020 caused money held by the people to rise well above inflation. With the economy in decline, this generates strong inflationary pressures. In this context, price and wage agreements are merely good intentions, if the public sector is not reformed comprehensively. (more…)

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Pension revenues cover only 80% of pensions spending

Economic instability is strongly associated with the fiscal deficit. The main source of fiscal deficit is the pension system disequilibrium. In 2020, the pension deficit kept on increasing, a trend that will accelerate with the new indexation formula. This fact increases the urgency of addressing the pension system imbalances. (more…)

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