“People with the lowest incomes are the ones who suffer the most from this inflationary process because they usually do not have assets that exceed the pace of these price increases (properties and investments) and their income or real salary is less and less and they have less power to buys. Every day 2,800 workers cross the poverty line. We are seeing the pulverization of purchasing power and consumption,” he said. Daniel Adlerspecialist in Financial Education and Entrepreneurship.
Adler explained that: “some 28 million Argentines receive direct income from the national State. There are 182 social assistance programs and last year there was an increase of 54% in the number of enrollees in these programs”.
There are 167 taxes and to these we must add inflation, which is the worst of all. Argentina today has the highest inflation in the last 32 years and is the product of the lack of investment and the absence of incentives for saving. Poverty, according to the UCA, reaches 43.1% of the inhabitants and indigence 8.1%. 61.6% of children between the ages of 1 and 17 are poor.
“We are facing a scenario where inflation constantly and methodically hits the pocket of each and every Argentine, where there are fewer and fewer SMEs, which represent 99% of the business fabric and 80% of employment, almost 11 million jobs (double that of large corporations), and 50% of GDP”.
“I allow myself, continued Adler, to propose some specific measures to lower inflation and achieve economic recovery, in two stages of 6 months each:”
stage one:
1 – Establish by Law the prohibition of monetary emission as Israel did in 1989. To absolutely restrict the monetary emission is to put a powerful handbrake.
2 – Limit the fiscal deficit to 2.5% of the gross domestic product (it is always said that you have to spend less, but it is good to quantify how much the budget is)
3- Keep the prices of Services such as electricity, gas, taxes and fuel fixed for the first 6 months (later they will begin to be updated progressively)
stage two:
4 – Creation of credits at a rate never higher than 18% per year, depending on the sector.
5 – Release of all private prices. Price freeze plans have never worked, are not working and will never work.
6 – Elimination of the exchange rate. That the dollar becomes a common currency like the Argentine peso. Let there be a coexistence between both ways as it happens in Panama.
7 – Generate value: perhaps the most important thing comes at the end, but we must return to the arena and to the competition. Is essential. The Government must invest in its most valuable asset, which is its people, so that they can create personal brands that are exportable as finished products. The world is really in need of Argentine suppliers, with a seal of quality like the one we will have very soon, if we follow these steps, but for that we need clear, transparent and sustainable internal economic policies over time regardless of the government in power, as does Uruguay.
“Once we have certainty and clarity, as well as credit and predictability, we will be able to start a National Financial Education Plan, projecting 40% of entrepreneurs who export their talent and who bring genuine dollars for themselves and for the country”, finished Adler
Source: Ambito
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