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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…)

The National Ministry of Social Welfare must be closed

In its two decades of existence, this Ministry specialized in distributing welfare programs on a discretionary basis. It served only to encourage mobilizations and to use poverty for electoral purposes. In order to stop manipulating the poor and provide solutions, a structural change of strategy is necessary. (more…)

The real wages of the poor fell 33% since 2018

Since the crisis began, at the beginning of 2018, the informal salary grew below the prices of the poverty line. This is the main factor explaining poverty increase. To reverse this social degradation, it is essential to lower inflation. For this, an integral public sector reform must be addressed. (more…)

Half of the poor youths do not finish high school

Toyota’s difficulty in hiring employees with a high school education made explicit the large number of young people who do not finish high school. Moreover, those who do finish suffer from low-quality education. The pandemic is the opportunity to rethink high school in such a way that serves young people and companies. (more…)

24,000 deaths and 1,5 millón poor people could have been avoided

Mismanagement of the pandemic led to neglect of the economy and health. Chile and Uruguay suffer fewer deaths and less poverty than Argentina. This is the consequence of Argentina’s long tradition of improvisation and lack of professionalism in the management of the public sector. (more…)