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The drama in Chaco originates in Bueno Aires

This is not the first time that an abuse of power occurs in a northern province. As it happened in the past, the indignation is channeled against the local leadership. But the causes of the institutional degradation are the incentives generated by the co-participation and the national transfers to provinces. (more…)

Coparticipation can not be fixed

The Census shows that the provinces that benefit the most from co-participation have the worst infrastructure. The reason is that the money is used more for clientelism than for development. That is why co-participation must be eliminated. Each province should be self-financed. (more…)

Is “Plan Llegar II” coming?

Before or after the change of government, the “Plan Arrive” (Plan Llegar) will end with a large devaluation. It is not so important what the current government does, as what the new government decides to do. Especially, it does not postpone the ordering of the State with the excuse of having to get to the 2025 elections. (more…)

If inflation falls, the provinces go back to fiscal deficit

The federal government’s fiscal imbalance contrasts with the provinces’ surpluses. This is so because the provinces used inflation to reduce the real value of expenses. If a drop in inflation is simulated, the provinces return to a deficit. For this reason, it is imperative to have a comprehensive reorganization of the three levels of the State. (more…)

Dollarization does not remedy the chronic fiscal deficit

The growing concern for the acceleration of inflation increases adhesions to proposals aimed at recovering stability. Dollarization appears among the most attractive. However, the change of monetary regime is doomed to failure without an integral ordering of the State. (more…)

More is spent on Leliq interest than on pensions

A third version of the dollar-soy was implemented. This will accelerate money printing, which the Central Bank will try to absorb by increasing the issuance of Leliqs. The Central Bank already spends more on Leliq interest than the social security agency in paying pensions. (more…)

Aumentó la Canasta Básica Total: Y esto qué significa?

El INDEC publicó el nuevo valor de la canasta básica total y mostró para febrero un valor de $177.000, Pero… ¿para qué nos sirve este monto? (more…)

Anses independence will prevent new confiscations

The polemical bond swap imposed by the Ministry of Economy to the social security agency (ANSES) operates as a new confiscation of pension savings. By respecting the ANSES autonomy, established in the Constitution, demagogic pension rules and new confiscations could be discouraged. (more…)

Increasing welfare spending increases poverty

Paradoxically, poverty keeps increasing under a government whose historical flag is social justice. The increase in public spending, including welfare spending, causes an inflationary acceleration that condemns a rising number of people, especially children, to live in poverty. (more…)

Poverty incrseses due to wrong consensuses

Accelerating inflation increases poverty. There is no compensatory State policy that will reduce poverty without reducing inflation. What is needed is to question the consensuses that support the bad policies that generate the State’s chronic financial and management deficits. (more…)