Believing that the monetary and fiscal adjustment will only solve the inflationary problem has been and is a failed strategy. The poorly conceived diagnosis is inevitably derived in an ineffective treatment.
“Soccer is not synonymous with ball, as the economy is not synonymous with money.”
Once again, the current social context makes it essential to examine the monetarist approach which guides the economic policy of self -perceived liberal governments or those that apply economic liberal recipes emanating from Great Britain or the United States, not for ideological issues, but for technical, practical and empirical reasons.
The course adopted is not new, it has known history and negative results. Here three keys are exposed to understand why all liberal monetarist approaches cannot offer a sustainable exit to Argentina’s structural challenges, because Believing that the monetary and fiscal adjustment will only solve the inflationary problem has been and is a failed strategy. The poorly conceived diagnosis is inevitably derived in an ineffective treatment.
Priority to fiscal balance without productive look
While fiscal discipline is necessary, it cannot be applied without considering its economic and social impact. The fiscal order must be a consequence of a sustained growth process, not its previous condition. In practice, the adjustment has always been applied to real macroeconomy factors and social expenses. It has been mainly implemented on sensitive areas such as public works, health, education, science and social programs. This deteriorates living conditions, weakens state capacity and compromises human capital, without offering lasting stabilization guarantees. Without a productive development plan, the adjustment ends up being repressive and cyclical, deepening the recession and weakening future tax revenues.
Accumulation model based on financial valorization
The current economic policy model privileges the financial economy in the short term, and the accumulation of volatile financial capital. The signals that give this kind of governments with liberal guidelines in the economic guarantee only the income of speculative capital. Productive investment is not encouraged. This bias is not accidental, it is applied in countries with unable leaders in some cases, and betrayal of national interests in others. It is part of a vision where macroeconomy should be ordered first so that “then” the development comes by spill. Great fallacy. The real economy of a country, such as Argentina, without a productive financing and development plan, and without political and economic planning; It is condemned to failure. Capital attraction only to invest in the financial economy is a guarantee of unemployment, of decrease in productivity in general, it does not improve commercial competitiveness, it decreases reserves and indebted to the country so that it can never get ahead.
Institutional disarticulation and deterioration of state capacities
A worrying aspect of the current approach is your Tendency to dismantle institutions, agencies and public policies on the argument that everything state is inefficient. The closure of agencies, the stoppage of sector policies, the reduction of technical personnel and the devaluation of knowledge not only weaken the State, but also affect the quality of economic policies. Without state capabilities there is no possible planning, there is no effective management and there is no freedom that orders the market.
Conclusion
The problem is not only the ideology of the monetarist liberal collective, but its theoretical-practical rigidity, and its inability to allow changes that correct their inconsistency. That idea that freedom is achieved only with these foreign recipes is decontextualized and without an anchor in reality. It is typical of philosophical immanence.
The lie becomes its only tool for the correction of economic deviations in Argentina. When the story of the inflationary causality, the dogma of faith of the zero deficit, of repressive adjustment and the elimination of the state falls to the liberal collective, it goes to what is observed today: poverty, never suffered, unemployment, decrease in generation of goods and services, uncertainty, discomfort, much bad humor and unpayable indebtedness. It is a repetition of errors already made.
The spill theory is a great fantasy or a false illusion.
Another look, new ideas, a lot of real work and more productive development is needed. A fresh look that recognizes the complexity of the problems, that plan and articulate long -term policies, that generates stability with development, that prioritizes public investment, social inclusion and strengthening state capacity. Otherwise, the current economic leaders will not be remembered as anarchocapitalist or libertarian liberal reformists, but as repeaters of a libretto that already failed.
Source: Ambito
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