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The pension system has to be ordered to reverse economic decline

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60% of people in welfare do not have education for a good job

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$17 billion a year is spent on food plans

Since the 2002 crisis, the federal government has been allocating a significant amount of resources to food plans, without any positive result. The Argentine Plan Against Hunger is not original in any form. That’s why it is guaranteed to fail beyond the political gains its executors may capitalize on. (more…)

The fiscal deficit was lowered by inflation

The year 2019 shows a significant reduction in the primary fiscal deficit. However, this is the result of a costly and unsustainable process. It is based on the loss of real value on pensions, salaries and public investment produced by inflation. A comprehensive ordering of the public sector is needed to achieve a genuine fiscal balance. (more…)

Federal government negotiating teachers’ salaries damages education

The federal government decided to intervene again in the negotiation of teachers’ salaries. The main consequences of this interference are increasing labor conflicts, and teacher strikes since teachers are employed by the provinces. Therefore, they are the ones responsible for paying the teachers’ salaries. (more…)

The coparticipation regime is reformed with no transparency

The government proposed to reduce the federal tax co-participation to the City of Buenos Aires and to re-establish national subsidies in that jurisdiction. This contradiction is the consequence of keeping on postponing a transparent debate on the co-participation regime to give equity and efficiency to federalism. (more…)

Tax pressure has doubled, but poverty did not decrease

The sharp increase in taxes was justified in the solidarity the affluent must keep with the destitute. This is valid reasoning, but not for Argentina, which already has a very high tax burden. In order to reduce poverty, it is not necessary to increase taxes but to achieve better state management. (more…)

To raise wages, it is necessary to increase exports

Reviving the economy boosting domestic consumption is inconsistent with the strategy of preserving the few dollars available. As soon as wages rise, imports will increase, and the dollars will vanish. Solving this puzzle requires a more favorable environment for exports.
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2 out of 3 pensions were granted with special rules

The so-called “privilege” pensions were one of the most controversial issues in the discussion of the Social Solidarity and Productive Reactivation Law. This is one more evidence that the pension system requires a comprehensive regulation which should be made jointly by the Nation and the provinces. (more…)

Inflation is making the fiscal adjustment

The outgoing government reduced primary public spending by 6% of GDP. This was not achieved with a public sector managing strategy but with real public expenditure reductions thanks to increasing inflation. In order to improve the social situation, it is key to stop using inflation as an instrument of fiscal adjustment. (more…)