Sector Público (ingles)
In the crisis, there is a proliferation of unhelpful proposals since they generate more public expenditure or less revenue. With innovative ideas and coordination between jurisdictions, the reform of the labor risk system shows that social protection and competitiveness can be improved without raising the fiscal deficit.
MOREMc Donald’s famous burger is used to compare the exchange rates between countries. With this indicator, the dollar in Argentina appears quite misaligned to neighboring countries. This can be useful to temporarily adjust the external sector but it is still pending to achieve competitiveness in more genuine ways.
MOREThe low fiscal deficit is good news but should be taken with caution since it was based on the inflationary surge. The reason is that the fiscal revenues follow the increase in prices while pensions and public salaries do the same but with delay. Sustainable fiscal balance can only be achieved through fiscal reforms.
MOREBolsonaro shows arrogance in the approach to many problems in Brazil. But it manifests a striking ambiguity and timidity in the face of the severe pension crisis. As it happens in Argentina, opting for gradualism to face this challenge is the best way to make the government plan fail.
MORETo overcome the recurrence of economic crises, it is essential to clean up the public finances. This demands a more sustainable pension system. The reforms should consider that Argentina, a country still relatively young, spends on retirements more than much older societies.
MOREArgentina has spent more than half a century with the public sector spending above its public income. High and systematic fiscal deficit leads to money printing that generates inflation, unsustainable growth of the public debt and an anti-export environment that aggravates external constraints and hinders social development.
MORE2019 budget states that mass media companies will be able to take employer contributions as VAT credits. The measure is appropriate to encourage employment and the formalization of sales. Therefore, the priority should be to extend this same mechanism also to the Northern provinces. (more…)
>The rapprochement of church leaders to their trade union peers is uphold under the argument that they are united by concerns about the social situation. One tool they could contribute if they want to to reduce poverty is to allow SMEs to move away from centralized collective agreements and move to firm-level negotiations. (more…)
MOREOne of the most worrying consequences of the crisis is the loss of jobs. There are ways to avoid it. A tool that proved to be highly effective is the one that Germany applied in the 2008 crisis, enabling smaller companies to deviate from the sectorial collective agreements and negotiate with their workers at company level. (more…)
MOREFiscal adjustment is not a whim of public officials but an imposition of reality. The systematic lack of austerity in the public sector generates an imbalance that no one is willing to finance. With more agility and strategic sense in the ordering of the public sector, equilibrium can be reached with reduced social costs.
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