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Subsidies cover more than half of the electricity cost

In the parliamentary procedure that ended in the rejection of the 2022 budget, cross accusations prevailed. It would be much more appropriate to focus on avoiding a deepening of the crisis. A key and urgent issue is to stop the exponential increase in energy subsidies. (more…)

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The central bank must be banned from issuing Leliqs and repos

The mechanism by which the Central Bank covers the fiscal deficit and then absorbs the excess of money issuance with Leliqs and repos is running out of steam. Besides being unsustainable, it is a very regressive use of public funds. To eliminate it, the fiscal deficit must be lowered.  To this end, reducing utitility subsidies is key. (more…)

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Federal government contributes only 5% to basic education

UNESCO published the results of an educational evaluation of primary school students in Latin America. The level of degradation of Argentine education is frustrating. It is impossible to reverse this process as long as the focus remains on the federal government. The provinces are responsible for this service. (more…)

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80% less in spent in tourism abroad whit credit cards

The government decided to prohibit the purchase of trips abroad with credit cards installments. The measure raised people’s rejections, although it has a low economic impact. This is explained because card payments abroad are far below what they were in 2017 before the exchange rate crisis broke out in 2018. (more…)

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The packaging law violates the constitution

The packaging bill creates a new tax to fund the National Ministry of Environment allegedly for waste management. This centralization is very inefficient from a management point of view. But its major shortcoming is that it violates the Constitution, which assigns this function to the provinces and municipalities.
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The problem is not the dollar but utility´s prices freeze

The government comes out of the elections politically weakened. To regain the initiative it has to reduce the fiscal deficit. The most urgent issue is to lower the energy subsidies that finance the utilities’ prices freeze. If it insists on freezing, the economic crisis will worsen, deepening the political weakness. (more…)

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To Put an end to Welfare, employment must grow 50%

The transformation of welfare plans into quality jobs is an enormous challenge due to the magnitude and characteristics of the people involved. Therefore, proposals not contemplating an integral State’s reorganization and labor institutions’ modernization are pure voluntarism. (more…)

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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…)

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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…)

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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…)

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