Argentina: Overview and Review 2002

A Plan of Gold for the Land of Silver

Brain Bees for Argentina--see Global Democracy

Several countries show extremes in how to organize an economy from a timistic analysis of who acquires the profits from problem-solving. The article wealth transfer describe the impact of politicians transferring more and more wealth to a fewer few through tax and business laws. On the one extreme of this wealth transfer is Japan, a country that for all practical purposes have retired from the rat race. An example of the other extreme is Argentina. In between is the United States.

At the turn of the century, Argentina had the fifth best economy in the world. Despite its wealth in natural resources and human diversity, it has slid to be barely in the top fifty. Whether by the Peron socialist or the decapitalistic programs, problem-solvers have been rewarded less and less.:

Read Down the Ladder where millions of the middle class Argentinians have become menial servants of the wealthy:

"Nowhere else ... have so many lawyers, doctors and accountants been compelled to take jobs beneath their abilities in newsstands, taxis and coffee shops."

Can this happen in America? Yes, it is happening now:

"The poor are not getting poorer, but richer relative to the middle class. The middle class, on the other hand, is slipping sharply when compared with top wage earners."

This writer also said:

"In the rest of the industrial word, the earnings of the 50th percentile household are not declining relative to those at the top or are declining at a much slower rate than what is observed in the United States."

Prophetically the United States, considered Argentine's benefits from free market:

"the 1990's privitization of electricity, telephone and health systems has delivered a one-two punch, eliminating thousands of midlevel government jobs while doubling the share of income the average Argentine family devotes to basic services."

The following are a list of articles with observations on the article in general or specific.

Regarding bond swap as a economic redemption tool:

1. "Down the Ladder: Hard Times Squeeze Millions of Argentines Out of the Middle Class" WSJ 2001-02-01 Front page ... Part 2 ... Notes
   • "the middle class has gotten acquainted with a bitter new phenomenon in recent years: downward mobility."
   • "the 1990's privatization of electricity, telephone and health systems has delivered a one-two punch, eliminating thousands of mid-level government jobs while doubling the share of income the average Argentine family devotes to basic services." [Coflation]
2. "Demonstrators protest as Argentina enters fourth year of recession"
   Star Tribune 010523
   • "jobless rate of nearly 15 percent and a quarter of the 37 million Argentines are living below the poverty line."
   • "The children waved placards proclaiming their 'right to life' and 'an end to poverty.'"
3. Argentina Formalizes Bond-Swap Plan WSJ 010525
   • "Argentina's government made its formal offer for a giant bond swap, part of its effort to gain breathing room while it tries to fix the economy. Argentina's government made its formal offer for a giant bond swap, part of its effort to gain breathing room while it tries to fix the economy."
   • "There is definitely a camp out there who doesn't think this is going to succeed and is willing to pay up to stay short,"
   • Observation: Like blaming a daughter's promiscuity on her clothing with the hope for better behavior by swapping the old attire for a new wardrobe. If the economic laws allow the non-problem-solvers to reap the bulk of the problem-solving profits, the real problem-solvers will have neither the motivaton or means to solve problems.

In Argentina the money went to corporate execs and habitual politicians, the same as America.

Articles of Interest worthy of reflection.