Even since Argentina saw democracy, in 1983, the country is going from financial crisis to financial crisis. The country had to deal with 2 financial collapses, hyperinflation and foreign debt default. It is one of those things that are certain in life. When you are looking for a crisis to invest in, start looking at Argentina. The terrible policies from the government and central bank resulted in hyperinflation and currency devaluation. It is fair to say that this had a terrible effect on the quality of life of the people in Argentina.
It is unfair to say that democracy and bad politicians are there good ones of the past century Argentina was in the same position. Going from crisis to crisis. What makes it even worse is that it is unneeded and unexpected. At the beginning of the century, Argentina had a promising economy.
So how is this possible? What is happening? There are several reasons for this. So let’s examine it.
One of the reasons is that Argentina is failing to leave the crisis is that the country is spending more than they get in. They do so to get short term satisfaction. They simply ignore the long term consequences. Does this look similar to you? Is your country running a deficit? Then you better prepare to survive and thrive than what is happening in Argentina.
One of the key reasons that Argentina fails to improve is the so-called Peronism. This is a popular ideology in Argentina. This is a combination of so-called “social justice” components. It means nationalism, high taxes, protectionism and government interventions in the free market.
Argentina is not alone in this ideology. This destructive ideology is becoming more and more popular around the world.
The big problem with this is that it is more and more popular around the world. It is time that we simply learn our lessons from the past.