Argentina’s economy has collapsed. Nearly 60% of adults in the nation are currently unemployed. Their July inflation is over 60%. Before you dismiss it as, oh, well, Argentina, ya know, it will happen here if we continue with the no-fossil fuel and big welfare state but no borders plan that Democrats have set out for us.
Argentina was once, not that long ago, a prosperous nation. Now it’s a collapsed socialist nation.
Argentina is socialist. They put socialist programs in place to compensate for their bad socialist policies. Those programs now cost six million dollars a day.
Cuts to subsidies in the energy sector based on household income began in June.
Other subsidies, including the country’s notorious welfare program, are also on the chopping block, triggering thousands of angry residents to take to the streets.
In the first quarter of 2022, the national employment rate was 43 percent, according to government figures. Now it’s 57%.
Harry Lorenzo, chief finance officer of Income Based Research, told The Epoch Times that the government’s constant spending had exacerbated the problem ten-fold.
“The Argentine government has been grappling with a collapsing economy for some time now. The main reason for this is the government’s unsustainable spending, which has been funded – in part – by generous welfare programs,” Lorenzo stated. This is the same issue we see in the US, Canada, Europe, and other nations where they spend without ever intending to pay off the debt.
Armstrong Economics Reviews the History
Argentina has defaulted on seven separate occasions since gaining independence in 1816. Speaking more recently, Argentina’s economy was already ruined in the 1980s when it faced a serious debt crisis, and the currency became worthless.
Inflation reached 2,600% in 1989, and the nation experienced hyperinflation into 1990. They decided to peg the Argentine peso against the USD in the late 1990s, which proved disastrous. A peg has never survived in the history of economics because the economy is not a flat line.
By 2001, the peso was completely devalued. US Treasury bonds and Argentine government bonds rose 5,000 bps – bank runs ensued.
There was an immediate freeze on bank deposits that December, and the people were left with nothing.
The International Monetary Fund then announced it would no longer support Argentina and cut them off from funding.
This is when the nation lost its last tie to any foreign capital. The nation had no choice but to default again at the end of December.
Various leaders, whoever could stick with the job, promised that the government would provide the people with basic needs. Nearly 60% of the nation was below the poverty line by 2002. By 2010, Argentina restructured 92% of its debt. The nation tried to remove trade restrictions and attract investors. Investors didn’t want their debt.
The IMF granted Argentina one of the largest bailout packages in history in 2018, which totaled $57 billion. The IMF again agreed to restructure $44 billion for the nation in January of this year. More subsidies.
No Diesel Fuel or Fertilizer Too
According to US News, Argentina is suffering from crippling shortages of diesel and fertilizers. It weighs on the country’s key agricultural sector.
Truck driver protests across the South American country have snarled traffic as anger mounts over diesel shortages and creeping prices for the motor fuel used by the farm sector just as the crucial corn crop makes it way to major ports.
Argentina is the world’s second-biggest corn exporter, the No. 1 exporter of processed soybean oil and meal, and a major wheat and beef supplier.
That’s Agenda 2030 and the New World Order at play.
Argentina farmers protest same as Holland pic.twitter.com/8QrGo5BD17
— AA (@AaAa97292919) July 20, 2022
Their rulers aren’t getting any wiser, either.
In #Argentina, farmers’ rights to freely re-use #seeds they save from their own harvests is under threat. Syngenta & others want farmers to pay a “mandatory royalty”. Only duly registered small farmers will be exempted. Details from @biodiversidadla: https://t.co/RMKyhO5rtU
— GRAIN (@GRAIN_org) July 25, 2022
Socialism Is Always Unaffordable
There is never enough money to carry out social programs. Inflation in the country keeps going up, and people have gone on strike. They pegged their currency against the dollar, and now the Feds are raising interest rates, worsening their situation.
They spent recklessly and made promises they couldn’t fulfill, just as our Democrats are doing now.
“I’ve seen five presidents come and go in that time; nothing has improved. Half of our country doesn’t want a job, and the ones that do, don’t want to pay the taxes for the others,” taxi driver Alvaro Gomez told The Epoch Times.
In the US, about half of the country does not pay federal income taxes. Millions currently sit home and collect unemployment thanks to the Democrats providing generous benefits that equal more than they would make in a job. Those people don’t want to go back to work.
Argentina has no strategy moving forward, and that will spell their doom. Are we looking at the US future? It looks grim as we move towards globalism and socialism, with some fascism thrown in by the elites of the New World Order.
Here’s how police in Macri’s Argentina met striking PepsiCo workers. pic.twitter.com/kNnPlMdE6u
— teleSUR English (@telesurenglish) July 16, 2017