Making a correct diagnosis is crucial to begin to retrace a path that can only lead to failure.
More than 80% of the global population lives with economic informality. Numbers of this caliber reflect the distrust of modern society in front of an institutional building that harms more than it favors, and pushes citizens to maintain their economy outside the official records. Given this panorama, making a correct diagnosis is crucial to begin to retrace a path that can only lead to failure.
That the informal economy constitutes a reality that encompasses society as a whole is a more than verifiable statement. It is not about addressing the issue only from the individual decisions of citizens, but about understanding how informal machinery directly impacts national development. Following this line, seeking guilty among those who protect themselves in informality to protect their personal finances would be a serious mistake. It is necessary to expand the sights and recognize that there is a system that offers guarantees or manages to convince.
As of 1945, with the growth of inflation, informality in Argentina amounted to levels close to 50%. Since then, he never went down. Now, to understand this phenomenon it can be useful to incorporate the Anglo -Saxon concept Compassion. This differs in a central aspect of its equivalent closest to Spanish, compassion: it does not refer to the penalty that is felt for someone who is going through a bad situation, but invites empathy, to put yourself in the place of the other.
Indeed, when corruption, inflation and instability are current currency, citizens conclude that the money they provide through taxes does not translate into social improvements. In this way, they use informality as a personal defense mechanism. Along the same lines, situations such as parliamentary boycott of clean file pay to generalized distrust. If it is not possible to guarantee legal certainty, it is also not possible to guarantee economic security. The 21st century demonstrates that the phrase “shrinking the State is to enlarge the nation” is today more true than ever, but it is difficult for the nation to grow if we let them handle the same as always.
But the lack of Compassion It is not only Argentine heritage: the proliferation of erroneous diagnoses resulted in the creation of an international bureaucracy responsible for imposing anti -saved regulations based on misguided cases. The emergence of this phobia was justified in the fight against terrorism and drug trafficking, and has been inconsistent as a strategy against both problems. Terrorist attacks do not depend on financing or have significant costs, as proved by the investigation of the attack on the twin towers; While drug trafficking from Latin America is US $ 15,000 million annually, but internal consumption in the United States is US $ 25,000 million. Each year, thousands of Latin bank accounts close, but no one takes care of the mountain of narcodollars that circulates daily in the US.
Recently, Javier Milei repaired the differences that exist between the informality to which those who wish to protect their finances from the system failures, and the informality in which illegal activities are shielded. Correctly, the president pointed out that the crime must be fought through security forces, and not with economic regulations that affect the average citizen. Indeed, the positions of the anti-Money L outander are incompatible with the reality that lives three quarters of the world, and the position of the Argentine government will help to break down the first brick of this Berlin wall.
This type of prejudices cloud the vision of the real causes of the problem, and make it impossible to take the necessary measures against the true dilemma: informality in response to severe institutional distortion. Indeed, it is essential to attack the source of informality, which is none other than distrust. For this, the solution is to generate incentives that invite to enter the formal system and get out of the margins.
In this sense, Argentine news presents some improvement samples that allow us to think of short, long and medium term advances. On the immediate horizon, measures are aimed at promoting the entry of the money sheltered to the formal economy, without punishing who so far chose not to do so. Milei insisted that the government works on a plan for Argentines to “can get their savings without being pursued by the State.” This project represents an interesting step to end the problem of informality, but There is an element that is a necessary condition to banish it: credit. With reasonable rates, people are going to pay taxes to prove to show income without being pursued. The main incentive to bleach income will always be access to credit. Who does not see it, will continue to incur erroneous diagnoses and never end up sounding.
Bas Storage economist and CEO
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
