As a 40 years old Asian American, I can not think of any Argentina company or consumer product, and cannot remember last time I purchased something made in Argentina, even Argentina is a major south American country, and that, is a serious problem.
one could say the same about many countries, such as the Philippines, yet their currency (also called the peso) stays relatively constant against the dollar. It seems that Argentina just lives beyond its means, the country believes the myth that Argentina is a European country but happens to be in South America. Unfortunately they are trading mostly with other South American countries, and that limits what can be attained. Mexico is tethered to the US, that's quite a bonus compared to other Latin American countries.
We in Brazil used to see them as an european country in South America, but then their crisis started to strike, and we now understand that they were living in a fake country, fake economic stability and prosperity... Our best commercial partner here in South America... I think we need at least more patents, more engineering works, improve our fiscal policies, so we can be more competitive in the world, and be less the world's farm...
You probably have bought a lot of Argentine products if you eat beef. The US imports loads of beef from Argentina. Beef can be labeled US beef even though it's imported from another country. You wouldn't even know. This is because if you process beef in the US you can label it as product if the USA. Sort of a loop hole because if you add value to a product you can label it as a USA product. So chopping it up in America technically adds value.
Could you make a video about on the economy of the Turkey? We have been facing with high inflation and thing not going very well. I would love to know more about the issues
You have perfectly explained what is occurring here in Argentina. One little mistake, that make things ever worse for us. The formal market is currently offering the us dolar in exchange for 800 pesos, while the one being sold at the informal market is reaching the 1000 pesos. Except for that, exceptional overview!
It would have been convenient, when approaching the history of Argentina, to point out that one of the reasons that led the country to have so much instability was the succession of military coups. The way it was put, it basically means that Argentina's entire problem began with Peron's election in 1946. It would certainly have been more didactic to demonstrate that inconsistent economic policies and structural problems, associated with political instability and high levels of debt, led Argentina to its current status.
@unusuario2804, estoy seguro de que no fue motivado por la elección de Perón. Mi crítica es que la narrativa del vídeo nos lleva a creer que los problemas tienen ese origen, lo cual considero erróneo.
Otros países de latinoamrrica tuvieron dictaduras como nosotros y hoy no tienen inflación ni problemas económicos tan graves. Si bien fueron épocas oscuras no fueron un factor.
The whole video is just an excuse to say "communism bad", it doesn't attempt to analize the actual Argentine situation or history in depth. Too bad people in other countries would belive that's how things happen instead of what actually happen.
@@clorox1676 is worse because Peron was very anti communist, this video is made to tell americans "state bad", it dont even mention the 30s crisis that ruin agro export nations, or the 70s junta that trie to undo the peronist economics and go back to the good old 30s....it fail.
You forgot to mention the power and influence the syndicates have on the government... They are a mafia, no economic prosperity will arise until they are abolished...
Could you do a video on the economy of the United Kingdom? This one was really interesting and I would love to know more about the issues with the UK right now
this video is well made but i cant help but see its biases you left out a lot of argentinas current source of contention which is are the imf funds that argentina has defaulted and the huge bailout under macri that worsened the situation argentina under nestor kirchner managed to mantain the stability and was even on track to be saved. please do better research
Most of these videos is blaming a guy who has been there 1 week so it is nice to see a video that is taking this seriously and explaining all of the info
@@leoninocat5070He wants to do a economy shock thats why he started doing this so the firts months Wil be the worst and after that the economy will health.
Another great video. As being from Germany I’d be highly interested in a video about the German Economic problems and the problems around. Germany was recently called the sick man of Europe again. Highly interesting problems and connections there. The exports are slowing, the Labour market is failing and there lots of debts and costs. Still we’ve overtaken Japan in GDP. Which isn’t caused by Germany, but by Japan having issues with too old population etc. Germany faces similar issues
The situation in Germany isn’t bad do not believe everything that news say, Germany is a country with a great economy, it is of the few countries in Europe with trade surplus which means that it earns more( by exports) that it spends (by imports), it has a good percentage of the global gdp and also has a high gdp per capita, the only issue to continue like this is that in the future the country will need emigrants for fill jobs, this is they want to stay competitive in the global market
Yeah, good take. It's really complaining on high level and the media is exaggerating it quite a bit. In comparison to many other countries our problems in Germany are rather tiny. As long GER stays at NO.3 place on the GDP Board not much is changing. The last years were quite bad but I' optimistic for the future in Europe @@yaelsanchez11777
To lift your economy if you don’t have large oil reserves and other metals/minerals to rely upon is education in long term and qualified high skill worker + foreign student migration in short-medium term. Argentina should make good policies towards creating good universities to attract foreign students and also make skilled worker migration rewarding.
Yes and you won't see that with Milei. CONICET (the national council of science and technology research) already said the government completely froze their budget and they will run out of money by June next year. Lot's of Phd and other researchers are already losing their scholarships
@@maximipe well, taking into account that many "research papers" were only a way to get money, given how ridiculous they were, I won't really miss that institution
Hi ! I love the new channel(I suppose it be) I want you make videos about Mali Cleary what happens in their country now. Cause I think a lot of people ignore Mali, Burkina, Niger Occupies a large rang in geopolitics their also created a alliance AES. And try to become a federation, first time in a histoire of this continent and a lot of Geopolitical constraints Get involved in it, a lot of. I don’t know if I’m clear but It’s very subject interested concern the world. Thanks 😊 and keep it :) * I’m here for any needed
Are ordinary Argentines sufficiently empowered by adequate knowledge to create more startups? This should be focused on while reducing government spending to ease the shock. Otherwise, the new President will be thrown out in a year’s time.
Argentines themselves are pretty well-educated to create successful startups. The problem is the terrible policies imposed by the government, which is still wedded to the old Peronist model of state intervention, autarky, and deficit spending through vast amounts of debt and inflation instead of higher taxes and more exports. Higher taxes most Argentine voters would hate, so the politicians don't ever provide this as a solution, even Milei. And more exports means more efficiency, and efficiency means getting rid of vested interests that have the politicians by the balls.
Because they aren't competitive enough. You'll see people complaining about goverment regulations but those include extreme protectionism. Even with those in place they can't compete.
Dollarization is not the same as pegging. Big economies do use foreign currency (like Italy and France for example as the euro is not their sovereing currency).
And the euro almost collapsed in 2010, with huge economies like Italy threatened with bankruptcy. This euro crisis was only averted at the last minute, when Germany was forced to make fiscal transfers to the poorer euro countries. Don't be fooled into thinking that dollarization is somehow a magic bullet that will solve all economic problems in Argentina. It won't. Using a foreign currency also has its big downsides, as Italy, France and Germany learned in 2010 and 2011.
The Euro is not a foreign currency for Eurozone countries. It is in fact their sovereign currency. They all take part in its management. Unlike countries who adopted the USD without the consent of the US like Equador or possibly Argentina in the future. As for Italy, Spain or Greece, an own currency wouldn't have stopped their economical problems, it might have temporarily helped, at best. The often mentioned devaluation as a wonder weapon for poor economies is only half the truth. Yes it makes your own products more competitive. But for countries who rely on imports, like it's true for most European economies, a weak currency would just accelerate the economic decline since you can't sufficiently supply your country anymore with the required resources.
@@wanderschlosser1857 You are wrong as this small insignificant european countries and their civil societies have no say in the European Central Bank which is dominated and working for the German elites.
@@wanderschlosser1857 Unfortunately, you have it wrong. When France and Italy agreed to make the euro their own currency, they in effect adopted the deutschmark as their currency. The euro is strong because the German economy, along with the Dutch and Austrian economies, back it. The euro was about to fall apart, and cause a huge sovereign currency crisis, in 2010 because the Germans and Dutch weren't willing to transfer German and Dutch money to help out poorer euro nations, like Greece and Portugal. It was only when Germany decided to give very onerous loans to Greece and Portugal--in effect fiscal transfers--that the foreign currency markets calmed down and the euro was saved. But it was Germany who had to make that move, because the euro is the deutschmark in disguise. LOL.
@@pdruiz2005 The Deutsche Mark may have been the strongest currency backing the Euro, naturally, since the Germany's economy was and is the strongest in the Eurozone. Still neither Germany nor Deutsche Bundesbank are the owners or sole decision-makers over the Euro currency. This is the task of the ECB which in return is managed through the central banks of each Eurozone country. That by definition makes the Euro legally the national currency of each of them and therefore to none of them a foreign currency. It's a completely different situation in comparison to Ecuador or El Salvador or any other dollarized economy.
Any problem in Argentina is NOT specifically with the economy ... but rather, specifically with the backwards politics. It just makes me wonder WHY in the world citizens elect such idiot leaders, except for the most recent President of Argentina - - So far, so good! Any negative surprises coming ... ? Who knows for sure? But it appears NOT.
While Peronism is guilty of many things. Where is the role of the several military juntas on the economy? Especially after the return of democracy in the 1980s
He didn't cover the military juntas because they continued the same failed policies that Peron instituted in the 1940s and 1950s. State subsidies to the middle class, a bloated government bureaucracy, import-substitution industrialization, huge state-owned companies, and massive budget deficits to keep the whole system going. The military juntas also took out huge sovereign debts that Argentina eventually defaulted on due to those budget deficits.
@@JohnSmith-og6kl instead of being bad faith, why don't you present an argument? In addition to considering that both governments had the same policies, the comment clearly looks down on them. So I don't understand what part of what was said is an apology for the dictatorship.
If the peso so low, why is Argentina not hot exporting wine, beef, grapes they could sell alot of Argentina products cheap and make booming exports numbers and bring in truck loads of us cla dollars currency 💲
because businesses in Argentina don't want peso's, they want dollars and that takes away the advantage. Not to mention the informal rate is 1200 not 400 like this video said. The official rate was 400 before it was increased to 800 last week. Even then it's not worth it so businesses still cant use peso's for business
Ignore the above comments, the real reason is that the extensive regulatory regime that business has to deal with when exporting utterly suffocates them. High taxes, high cost of labor, high tariffs on imports *and exports for fuck's sake* make it so exporting is usually not worth it for all but the largest businesses who can live off razor thin margins.
The Peronist system has made exporting goods inefficient and highly expensive in Argentina. The result--even when the Argentine peso collapses against the US dollar, leading to a great macroeconomic environment for exports, Argentine workers and companies don't benefit due to all the red tape behind exports. This is the very opposite of China and Japan, who always intervene in the currency markets to make the yen and yuan as cheap as possible against the US dollar. Having their currency go down to 1/58 the price of the US dollar in 10 years would be a dream, especially for Japan.
You dont seem to be aware that Argentina has been de facto dollarized for decades. The transition would be almost seamless and not very complicated as you argue.
Aye good video and The Invisible Hand neo liberlism reference? Anyways I'd love to see a Malaysia, Singapore, Brunei, Indonesia, Timur, and Papau new geniue about how the all developed different economies while being in the same archipelago in the far future
Neo Liberalism: 🏛️🇺🇸👉👈🇪🇺🏛️ + 🇺🇸🏦👉👈🇪🇺🏦 = 🇺🇸🇪🇺🏦🫴💰🫲🇬🇷 = 📉🔻💲🇬🇷 = 🏦🫳💶🇬🇷🏛️⛲🏗️🏟️🏭🏘️🏠 = 😢🇬🇷🏚️⛺🛶. Simplified: Western Financial Sector bootgang's your economy and then lease it back to you with interest 😔 for Wall Street 😉
Any sovereign nation has the option to create its own money debt free. It’s just that the international banksters don’t like it much, for obvious reasons.
At 7:56. Thank you for bringing up the 2001 Argentine default that was precipitated by the dollarization of the peso in the 1990s. And how this was caused by constant huge budget deficits and the inability of Argentina to export enough to get the dollars required to make dollarization work. The result--a huge bankruptcy and an economic recession worse than the Great Depression in 2001. Milei will be facing this same threat if he dollarizes the peso again. Taxes also need to be increased massively to keep the budget balanced. Increase in tax revenues is also how El Salvador, Ecuador and Panama have made their dollarization schemes work. Milei needs to do the same--increase tax revenues and crack down on tax cheating.
Increasing tax rates doesn't necessarily lead to higher revenue. It can in the short term, but there is a loss in the long run since there is higher evasion and decrease in economic activity.
Don't forget IMFstill financed stupid politics without putting any limit ! ! Thry have a great responsability in this situation. I lived there for 12 years and predcted the 2002 crisis. I saw the strange relationchips between IMF and and local leaders also....
3:29 Federico Pinedo (after Cristina Kirchner) was not president of Argentina haha. It was a mere formality for 12 hours in order to hand in the presidency in an orderly way.
Easy, excessive spending on misaligned projects while being socialist and not generating a return on investment. They need to double the taxes and half the spending.
"sufficient reserves of dollars are build up thru trade and repatriation of dollars" before a dollarization process can begin. How much will they need when the reserves are low low. No hay Plata Carajo.
Average argentinian was not close to on par with the average french or british, the idea that argentinas economy was ever “promising” is a misconception
I like Milei and I wish him good luck trying to fix this country a little bit🤞 But Argentina is already a failed state and there isn't much hope for the future 😢
It seems like you barely did any research to make this video, or worse yet, you let yourself be carried away by prejudices. You said that to understand Argentina's current situation we must know its history, and then you proceeded to mention only Peronism. Where is the infamous decade? Where are the governments that followed Perón? For God's sake, where is the last dictatorship, or the Alfonsín government? You barely mentioned anything about the Menem government. Why didn't you say anything about the 2001 crisis that his government (supported by Milei) caused? Your video coincides exactly with Macri and Milei's story: blaming everything on Peronism. Obviously, Peronism is partly to blame for the current situation (even more so after Alberto's government), but this story very conveniently takes responsibility away from other important actors for Argentina's supposed decline (and I say supposed decline because Argentina was NEVER at the level of a fully developed country, since in its supposed golden age at the beginning of the 20th century it barely industrialized, and did not form a strong internal market capable of resisting external crises like that of the 1930s). If you want to see a better made video on why Argentina is in this situation, I recommend watching the Caspian Report video. At least that one doesn't tell nationalist lies.
I’m from a country which had hyper inflation in 1997. Now all good. It took 1 government and currency board to fix it almost overnight. I genuinely don't know how these people haven't solved the problem… So many politicians and they haven't solved it…
What you need understand is the peronism is lived as a religion here. As the video says, Perón was a Mussolini admirer, but is kind of tabu to say that, as to mention the narrow connection between peronism and military goverments. On the contrary, peronist accuse antiperonist of being 'fascists'. Through propaganda and indoctrinement, they changed the history. The peronist leaders have the privilege to screw the country without never pay the price. It seems to be currently a bit of cultural change, but peronism won't die soon.
@@ekaterinadimitrova2287 I'm far from being an expert, just a dude with a keyboard, and to write in english demands me a lot of energy, but I'll try to pinpoint some things. It's not an exhaustive response. The general economic "ideology" that the video describes is a part of the argentine culture in the last decades, not only peronist. The last breed of peronism (kirchnerism) just took that too far in a irresponsable way (way, way more irresponsable than the argentine standard), so it's difficult to know how much of the disaster is because the economic "principles", and how much because incompetence and bad faith. The peronist themselves are not a monolith (as a fact, they are crazily contradictory; the hard kirchnerists identify themselves as something akin to communism, but Peron was anticommunist, as you can guess by the link with Mussolini, and the most economically liberal government in maybe the last six or nine decades was also peronist, the Menem one of the video. That peronist government being a model for Milei, the current "anti-peronist" one, you believe in it or not.). Well, anyway, the political forces that can win an election in Argentina contain both peronist and non peronist people. The Milei cabinet has probably a fistful of people that are peronist in origin. In a certain way, to be peronist is like support a football team, more like a personal or cultural identity. However, one of these political forces contains the "mainstream" of the peronism and they identify themselves as such. As for the economic management of the country, I'll try give a sample button. About 2007, beginning the (peronist kirchnerist) government of Cristina Kirchner, the country suffered of a bit of inflation (to say, less than 10 %), maybe some little deficit in some other economical parameter. ¿What measures she took? Well, the government ignored inflation and accused to whom point to it of try to overthrow the government, of being a sympathizer of military governments, and of defend the economical interest of some foreign imperial powerhouse. They created, aided with propaganda and fierce militants, a (patently fascist) narrative in wich the nation, the party and the leader were the same thing. As they believe in their moral superiority, they can't learn nothing because in their minds they never make a mistake. (It should be noted that the initial success of kirchnerism (2003-2007) in a very favorable context led them (and many non kirchnerists as me at the moment) to believe that they were so good.) The mismanagement (beginning with the reckless state expenses) increased as a snowball in the 8 years of Cristina Kirchner, but they always were religiously blind to it, as they still were a month ago, with a (also kirchnerist) government that left the country with a 300% of annualized inflation, almost 50% of argentines being poor or below (as notorious result of their "social justice"), etc, etc. (They couldn't take loans because the default. Simply nobody loan money to Argentina. Instead, the government imprinted a lot of money for short term expenses, devaluing the currency in the long term.) In summary, we have an assholery problem that precedes the economical one. I hope this explanation is at least entertaining, if it doesn't shed too much light on the subject, and I'm sorry if I deviated a bit instead to reply more directly. We Argentines usually say "you wouldn't understand" when we talk about our messy things. It's not a cognitive problem; a lot of us haven't the will of understand.
But how come they are still on G20? Thailand's economy is bigger than Argentina and yet they are still on 20 biggest economies in the world. It's baffling
I’d be interested too. There seem to be many more countries with interesting Economy. The channel got quite some to cover which is good as you won’t run out of topics so fast. Also India compared to European countries is interesting. Over the past years it continues to overtake major European economies. Besides still being an emerging country
@@RaineriHakkarainenthe only good looking economies that are growing faster and having high development standards and income grow in the last decades are Costa Rica, Panamá, Uruguay and Dominican republic that according to estimations will be high income developed countries in the next 10-15 years. Their HDI right now is high getting closer to Portugal for Example and their GDP per Capita in surpassing the Eastern Europe ones and getting closer to the western Europe standards, and with a median grow of 4-6% each year they definitely will be the first developed ones of the Latin American Regions
Just ban the TRADE of Exports for Internal Consumption. Energy Subsidies should be ended for the Power Plants. But the funding remains in the form of finances as to promote Investments in Power Sector.
Yeah, i agree with everything. The only real issue right now is political. If Milei manages to change the policies here, i have no doubt argentina will thrive again
@@silcar2300 Speak for yourself. As an American I'm not giving $60 billion to a country that has defaulted 4 times in the past 25 years. Are you nuts??? Argentines need to get their sh*t together before sensible foreigners give them money again. LOL...
@@pdruiz2005 I do speak for myself. And I was playing. We have had an irresponsible gov for 20 years. Now the consequences. Maybe they are nuts , to give an answer to your offensive comment. Question: are you really American?
@@silcar2300 Yep. My name is Spanish but I've been living in the U.S. for the past 33 years. I pay U.S. taxes in U.S. dollars. So if my government seeks to give $60 billion to Argentina, an irresponsible nation that can't keep its economic house in order, I definitely have a say and an opinion. They're playing with MY tax money!
@@pdruiz2005 No. Argentina, like other countries, owes money to the International Monetary Fund. That money does not come from your taxes. Do some research. And it is not an irresponsible nation. It is /was an irresponsible and corrupt GOVERNMENT. Regards
