Argentina

Argentina

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  “Don’t Cry ForMe, Argentina” America This history lesson happened in Argentina, it could happen in the U.S.
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  In the early20th century, Argentina was one of the richest countries in the world. While Great Britain’s maritime power and its far-flung empire had propelled it to a dominant position among the world’s industrialized nations, only the United States challenged Argentina for the position of the world’s second-most powerful economy. Click for all slides.
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  Like the UnitedStates, Argentina was blessed with abundant agriculture, vast swaths of rich farmland laced with navigable rivers, and an accessible port system. Its level of industrialization was higher than many European countries; railroads, automobiles, and telephones were commonplace.
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  In 1916, Argentinaelected a new president, Hipólito Irigoyen from a new party called The Radicals under the banner of “Fundamental Change” with an appeal to the middle class.
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  Among Irigoyen’s changes:mandatory pension insurance, mandatory health insurance, and support for low-income housing construction to stimulate the economy. Put simply, the state assumed economic control of a vast swath of the country’s operations and began assessing new payroll taxes to fund its efforts.
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  With an increasingflow of funds into these entitlement programs, the government’s payouts soon became overly generous. Before long its outlays surpassed the value of the taxpayers’ contributions. Put simply, it quickly became under-funded, much like the United States’ Social Security and Medicare programs.
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  The death knellfor the Argentine economy, however, came with the election of Juan Perón. Perón had a fascist and corporatist upbringing; he and his charismatic wife, Eva, aimed their populist rhetoric at taxing the nation’s rich.
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  This targeted group“swiftly expanded to cover most of the propertied middle class, who became an enemy to be defeated and humiliated.”
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  Under Perón, thesize of government bureaucracies exploded through massive programs of social spending and by encouraging the growth of labor unions. These programs provided government jobs, attracting the peons from the haciendas and leading to large reductions in beef and wheat production.
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  High taxes andeconomic mismanagement took their inevitable toll even after Perón had been driven from office. However, his populist rhetoric and “contempt for economic realities” lived on. Argentina’s federal government continued to spend far beyond its means. Note: In the 1970s, I travelled to Argentina on business. The inflation was so bad, taxi cab drivers were issued a printed chart each morning. The meter reading was adjusted using the daily chart to determine the fare. Argentina had meatless days because insufficient beef was grown to satisfy the local market in a country that had exported beef for many years. Argentina also was importing wheat, a country formerly one of the major wheat exporters of the world. –Vicar
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  Hyperinflation exploded in1989, the final stage of a process characterized by “industrial protectionism, redistribution of income based on increased wages, and growing state intervention in the economy.”
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  The Argentinean government’spractice of printing money to pay off its public debts had crushed the economy. Inflation hit 3000%, reminiscent of the Weimar Republic. Food riots were rampant; stores were looted; the country descended into chaos.
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  By 1994, Argentina’spublic pensions – the equivalent of Social Security – had imploded. The payroll tax had increased from 5% to 26%, but it was not enough. In addition, Argentina had implemented a value-added tax (VAT), new income taxes, a personal tax on wealth, and additional revenues based upon the sale of public enterprises, taxes that crushed the private sector and further damaged the economy.
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  A government-controlled “privatization”effort to rescue seniors’ pensions was attempted. However, by 2001, those funds had also been raided by the government, the monies replaced by Argentina’s defaulted government bonds.
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  By 2002, “…governmentfiscal irresponsibility… induced a national economic crisis as severe as America’s Great Depression.”
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  In 1902, Argentinawas one of the world’s richest countries. Now, a little more than a hundred years later, it is poverty-stricken, struggling to meet its debt obligations amidst a major drought.
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  The Democrat Party’spopulist plans for the U.S. cannot possibly work, because government bankrupts everything it touches. History teaches us that ObamaCare and unfunded entitlement programs will be utter, complete disasters.
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  The Democrat Partyleaders of today are guilty of more than stupidity; they are enslaving future generations to poverty and misery. And they will be long gone when it all implodes. They will be dead and as cold as Juan Perón when the piper ultimately must be paid.
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  DON'T CRY FORME, ARGENTINA Sung by Madonna And as for fortune, and as for fame It won't be easy, you'll think it strange I never invited them in When I try to explain how I feel Though it seemed to the world That I still need your love after all I have done They were all I desired You won't believe me They are illusions All you will see is a girl you once knew They're not the solutions they promised to be, Although she's dressed up to the nines The answer was here all the time At sixes and sevens with you I love you and hope you love me I had to let it happen, I had to change {au Refrain} Couldn’t stay all my life down at heel Looking out of the window, Don't cry for me Argentina staying out of the sun The truth is I never left you So I chose freedom All through my wild days my mad existence Running around trying everything new I kept my promise But nothing impressed me at all Don't keep your distance I never expected it to Have I said too much? {Refrain:} There's nothing more Don't cry for me Argentina I can think of to say to you The truth is I never left you But all you have to do is look at me All through my wild days my mad existence To know that every word is true I kept my promise {au Refrain} Don't keep your distance Click to exit.