Who would’ve known, the man that made it so people can get their salary in jugs of milk is a complete idiot.
Don’t be so quick to judge. The people who wisely chose to get paid in diapers just had their wages doubled.
Only if they can find idiots willing to trade with them
hopefully circumstances worsen quickly enough that it’ll be noticable for everybody so that the general public can clearly identify it as a direct consequence of this maniac being elected. If its deteriorating too slowly people might just not notice it as much and might go along with all the coming explanations ( probably immigrants, leftists, blahblah). If there’s a quick look into the abyss people might wake up and get into action.
If its deteriorating too slowly people might just not notice it as much and might go along with all the coming explanations
They’re already saying he inherited an unfixable catastrophe. The stalwarts aren’t even trying to pretend that he might be successful.
But to me, that just makes it sound like the ones who he inherited it from were managing the same crisis infinitely better. And it’s not like it’s one of those ticking time bomb economies that politicians set up when their opposition gets elected - it’s a fire that has been actively burning. The only new ingredient is Milei’s administration itself.
But I expect that he will fail miserably and do immense harm to the people, and that his failure will be excused by blaming it on prior management rather than blaming his policies that caused the situation to spiral out of control. I don’t find the narrative convincing, but that’s what I expect to hear from people.
The previous leftist government had used complicated currency controls, consumer subsidies and other measures to inflate the peso’s official value and keep several key prices artificially low, including for gas, transportation and electricity.
Yea devaluing peso from 360 for a dollar to 790 for a dollar instantly meanwhile is such a big brain play.
there is no such thing as a ‘natural’ price. every price is artificial. OPEC is literally a cartel ffs. The concept of ‘artificial’ pricing is so libertarian brained.
The invisible hand of Chicago School pseudoscience.
A Mileista friend of mine keep complaining about 140% of inflation a year for the past government, but now that yhey had like 300% in a week suddenly is ok and is just the true price of everything. Of course he dosen’t live in Argentina and dosen’t has his salary cut by a third in a week so it’s ok.
Always the gusanos living outside their countries that back their right-wing nutcases the hardest
Every time I see that phrase it makes my eye twitch. ALL pricing is artificial. Always. No exceptions.
I think in his bigbrain libertarian mind, the money market pricing of the peso to usd is what defined the value previously and he decided that the market’s pricing is not correct for that of the Argentinian currency.
By devaluing the currency, it makes Argentinian labor and goods comparatively cheaper on the international market. This is a similar move to how China grew at such a tremendous rate in the 90’s - they intentionally devalued their currency in order to use foreign investment in their relatively cheap labor pool to fund the creation of their manufacturing industries.
That solution probably won’t work here, though. Corporations are scared of investing in countries with unstable political leadership that performs brash actions like his. (Libertarian economics cannot account for such beliefs though since everyone must be a perfectly rational actor that chooses price above all). They are afraid that he may unilaterally nationalize certain industries and claim all assets for the state. Or he may rugpull outside investments and say that all profits must go to the state for some amount of time. Whatever flavor of stupid chainsaw wielding antics he comes up with one day is what they will see and use as a justifiable rationalization for not investing in the devalued market of Argentina.
also China was handpicked by the American capitalists to be the manufacturing hub (cheap currency was a cherry on top). Countries recently forced to devalue currencies haven’t had a similar manufacturing boom especially because global economy is doing kinda shit.
also back then there was western industry that could be offshored to china. whose industry’s gonna move to argentina now? nobody else with a significant manufacturing sector is stupid enough to do it, after watching the west shoot itself in the foot. or so one would hope…
there is no such thing as a ‘natural’ price.
Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales.
That’s how markets actually look in the wild.
And the natural price is the mathematical expectation of the price you get by bargaining.
It’s very simple and in this particular case “mainstream” economics and libertarian economics get along pretty well.
no. because the prices are influenced by external factors. i live in a country where markets like these exist and the price is not ‘natural’ in any way, in an idealized world maybe but not in reality.
firstly, transporting any commodity (and inputs such as fertilizers) requires fuel and fuel prices aren’t determined by such idealized markets you mentioned, its determined by what cartels and oligopolies want it to be. you are also ignoring subsides, not just by the national governments but foreign governments. for example, developed countries provide a shit ton of subsidies which pull down prices in the international markets, without restrictions and tariffs these displace local production.
there is also the fact that food prices are very inelastic, the seller can push prices very high and the consumer will be forced to accept it because you can’t live without food.
i dont really get the middle eastern market you are mentioning because in reality there is absolutely price discrimination going on.
OK. Natural prices exist as an unreachable ideal point, but there are no absolutely natural prices in real world. I agree, and, BTW, no ancap would argue with that.
natural prices can only exist in an environment where every consumer and producer has all the information and is completely rational.
if you are rich and a vegetable seller who typically charges $5 for a vegetable charges you $10 you are unlikely to bargain as you would consider it a waste of your time and energy and just buy it. is this person being rational by not wanting to waste their time or irrational because they aren’t squeezing more out of the seller.
My two comments combined do not contradict what you say.
Thx for the link, I’ll look at it
Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales
imagine citing a fantasy trope to justify economic policy jfc
I don’t need to justify anything to you. It’s an example for educational purposes.
EDIT: And if you think it’s just a fantasy trope, then you probably haven’t been out of your state.
you called it a fairy tale, genius
I wonder what’s the longest text you’ve read in your life and understood anything at all.
Hey aren’t you that guy from like a week ago who refused to read a two paragraph article someone linked you?
Diaper prices have doubled
I hate to defend the libertarian, but nobody could have forseen the IDF suddenly buying up the world’s supply of diapers for their troops in Gaza.
sorry, it’s been a bit since i’ve been to the news mega
what?
There’s a meme subtitle of a Hamas statement which says IDF soldiers wear diapers into battle. I speak zero Arabic, so I assume that it’s just a funny subtitle and not a real statement idk.
no he actually said that
Wtf extremely based.
Why would they do that? Already wearing the brown pants
Helps with cum collection later
They like the feeling of it
offtopic: A bit of advice on your nickname - it’s “desantnik” in Russian.
death to america
Who could’ve guessed that a rightwing government wouldn’t solve their issues (which were originally caused by rightwing policies)?
No, you are lying. Argentinas problems do not originate from right wing policies but from over protectionism
I knew he was going to hurt Argentina badly, but I didn’t expect him to be this quick
I’m so glad Argentina pulled out from BRICS+, it would have been a drain on it
Brics hahahahhahahahahahahahahahahahahahaha Where nobody trusts each other enough to even talk about one single deal.
China and India are almost at war. China will invade Russia as soon as they can to take back kamtsjatska (and they should) Etc
I’m glad you are underestimating them, for a moment I was worried the G7 might take them seriously and do something
It’s clear you do not understand geo politics… Who is in the g7 with veto power? Which letters of brics?
The Security Council is made up of former Allied Powers, so the US, UK, France, Russia (successor to USSR), and PRC (successor to ROC). So 3 in the G7 and 2 in BRICS.
I’m not sure what’s the point of this question.
Now my turn: Name the bloc that just exceeded the G7 as the largest economies in the world.
Here’s the answer:
I can’t believe this is happening. There was no possible way to have seen this coming from a man who cosplays as “General AnCap”. I’m just beyond floored that this man could do something bad to an economy.
Environmentalists not knowing how to react to this headline
A country like Argentina, beyond its meat industry, isn’t really a country with a significant impact on the environment - but this will hurt the local population.
By design even, considering what the aim of the current government is.
meat has nowhere near as much impact as transit/cars
Libertarians around the world like AKTCHUALLY this is good for Argentinians! Nobody being able to afford goods and services is the cornerstone of a healthy society! I am very smart!
Idk what you’re talking about my guy. Pretty sure numbers going up is a good thing for the economy 🤷
Appling your political beliefs led to 60% child poverty. Explain that.
Why does everyone keep saying child poverty?
Like, do children in other countries have some sort of massive wealth I’m not aware of?
This is just the price the poor are going to have to pay while the rich get to loot the country.
I think so far this is what people wanted: end the status quo and apply shock therapy.
His supporters hope that in the long run the economy will become independent and the country would come out of the never ending crisis. My guess is that everything will simply end up owned by private interests and while (best case scenario) the economy will do better, people will suffer even more.
The Argentinian economy will not do better, only the wealth of the neocolonial compradors will, and the wealth of their Global North capitalist masters.
That’s what I meant, it will do better “on paper”.
Hard to call that worse than the mess they are in
They should have played hardball with the rapacious IMF instead of licking its boot.
More than having 60% child poverty? Doubtful.
Well, I guess we’ll see. Currently I don’t really see how privatizing everything and opening real estate market to foreign investors helps poor children but maybe it will. My guess is that when the private corporations take over everything they will squeeze even more money out of the poor but maybe the wealth will somehow trickle down. It’s definitely an interesting experiment. My other guess is that if this fails all the libertarians will say that it’s because he implemented all the policies they like so much wrong. If he succeeds I’m definitely voting for the right wing nutjobs in the next elections.
how privatizing everything and opening real estate market to foreign investors helps poor children
the wealth will somehow trickle down
Spoiler alert: it never did.
The historical record shows that there are no maybes about this. It’s obviously not an “interesting experiment.” There’s no sense in giving these rhetorical inches while they’re taking miles.
What historical record? Can you point to another country taking such a extreme turn to the right while being in similar situation? And not being met with sanctions like in Afghanistan for example. I’m genuinely curious.
Can you point to another country taking such a extreme turn to the right while being in similar situation?
While that isn’t what I was talking about, Weimer Germany is the canonical example of a similar situation, but there are many examples.
What I was talking about is the historical record of neoliberal shock therapies, which Naomi Klein documented well.
Diaper fetishists in shambles.
Common Ancapistan W
and by W he means the shape of the roads
- looks like someone needs to take econ 101
It’s beginning to look like Venezuela but with libertarians. It’s quicker than I thought.
Venezueal is a locked country that’s sanctioned to hell, Argentina is about to break incompetence records not ever seen before
No it isn’t. Venezuela is one of the most sanctioned nations in the world.
Venezuela’s economic crisis really began after oil prices fell drastically in 2014 and the west used Chavez’s death/Maduro’s election to increase pressure on the country via sanctions which for example made buying parts to maintain oil refineries difficult. Before that, it was doing about as well, or better (of course, failing to become independent from oil exports) compared to the other countries in Latin America.
Argentina was already in a crisis for the last …20 years-ish, but this acceleration of the crisis happened in a week even as Milei backpedaled on some potentially damaging promises like cutting trade with China.
Argentina isn’t sanctioned at all lmao. Thinking Venezuela is a failure is exactly what the US and its allies want you to think with the ridiculous amount of sanctions. Can’t have people see Socialism succeeding.
And they are doing it all by themselves, no sanctions required.
