THE PENSION SYSTEM POSES MORE CHALLENGES THAN THE LELIQ

The enormous accumulation of liabilities in the Central Bank is a major constraint to lower inflation. But even more restrictive is the fact that, if inflation is lowered, pension expenditure automatically will rise. This cannot be solved by manipulating pension indexing but through a comprehensive reorganization of the system. (more…)

HALF OF THE PEOPLE VOTED IN FAVOR OF DISRUPTIVE CHANGES

The PASO (primary election) results show that people want deep and innovative transformations. It is an unprecedented political context that constitutes an opportunity to get out of decadence. The risk is that, due to ignorance of how the federal regime operates, “more of the same” may end up prevailing.       

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70% OF POOR CHILDREN HAVE SEVERE DEFICITS IN LITERACY AND MATH

The educational decline deepens. The presidential candidates signed the Commitment to Literacy. To avoid repeating old failures, the commitment should be that the Nation concentrates on improving the economy and jobs, and the provinces concentrate on improving educational management.        (more…)

HALF OF THE DROP IN SPENDING IS IN PENSIONS LOSS OF REAL VALUE

The government appeals to the inflationary adjustment of public spending, led by the loss of the real value of pensions. The main risk is that the next government will be tempted to maintain this same kind of adjustment to reduce the fiscal deficit. What must be done is a comprehensive reorganization of the State.        (more…)

THE NATIONAL STATE INCREASES GEOGRAPHICAL INEQUALITIES

The national state takes resources from the most productive areas and allocates them to CABA, the richest jurisdiction in the country, and to the poorest provinces, using the terrible instrument of co-participation. The solution is a new agreement between the Nation and the provinces to redefine tax and functions jurisdictions.        (more…)

FISCAL ADJUSTMENT CAN BE AVOIDED ORGANIZING THE PUBLIC SECTOR

With the worsening of inflation, a strong fiscal adjustment appears to be inevitable, although very much resisted. The alternative to balancing sustainably public finances, and simultaneously improving public management, is to impulse a comprehensive reorganization of the whole public sector.        (more…)

BY ELIMINATING OVERLAPS, THE FISCAL DEFICIT CAN BE ELIMINATED

The incident between the firms’ registration office and the PRO is very instructive of the consequences of not concluding the transfer of services from the Nation to the CABA. More broadly, to eliminate the fiscal deficit, it is key that the Nation stops intervening in CABA and provincial functions.        (more…)

IN HOUSING POLICY THERE IS NO “RIFT” EITHER

Promoted by legislators of “Frente de Todos” and “Juntos por el Cambio”, Congress is about to pass a law to “save” UVA mortgage loan debtors. The result will be fewer mortgage loans for those with no home. Another example of the strong consensus endorsing the wrong policies.        (more…)

PROVINCIAL SALE TAX SHOULD BE ELIMINATED

Sale tax is questioned because of its accumulation in the successive stages of commercialization. But the main reason why it should be eliminated is because of the multiple payments in advance regimes that the tax has. These regimes are very bureaucratic and generate permanent balances in favor of the taxpayer.        (more…)

Stop discriminating against digital money

The use of digital money is growing exponentially. This is an opportunity to reduce the high level of tax evasion and, in this way, contribute to the reduction of the fiscal deficit. To this end, it is essential to stop discriminating against digital money with tax surcharges. (more…)