Let the exceptional not hide the usual

Diagnosis is important, but up to a point. It is when the force of the facts assumes a forcefulness that the diagnosers begin to exceed and the solutions scarce.

Argentina has already undergone this process. And although our economic ills are recycled in time and space, this time there is something different: the shock The economy is experiencing is not comparable to other crises, even when there are connection points.

The pandemic cliff that activity rolled downhill in April is unprecedented. The only consolation would be that it has touched the ground.

But not everyone will be able to upload again. Many companies are staying in that pit, others barely survive and the decapitalization does not discriminate.

In addition, the certainties on how the Covid-19 behaves last just weeks, so we do not know how long we will live with the twists and turns in the quarantine phases.

However, once again, the exceptional cannot hide the usual, even when many put the curtain on the pandemic to justify everything.

As the maximum prices for some 2,300 items in the basic basket were extended until the last day of August, the Government copied and pasted an article from the previous extension that, in the current context, generated suspicions.

It is an invitation to companies “to increase their production to the maximum of their installed capacity and to arbitrate the appropriate measures to ensure their transportation and provision.” That and decreeing that there is no repressed inflation is the same.

Things like these happen due to the deliberate absence of an economic plan, the one that, according to the Government, exists, but will be shown when the debt restructuring ends.

What if, as the economist Daniel Marx (with experience in renegotiations) thinks, the process becomes a series of partial exchanges, with the wear and tear that entailing being trapped, who knows how long, in that purgatory?

The Argentine Industrial Union (UIA), whose president Miguel Acevedo maintains a direct line with the Executive, released a document with proposals for the post-pandemic. To tell the truth, the thick lines could well be a carbon copy of any industrialist discourse of a decade or more ago.

And it is that, crouched behind the pandemic, the indigenous evils are those that should not be lost sight of, because they hurt a lot in such a deteriorated economy and with little capacity to react.

There are no signs of what the government intends to do with public spending, the fiscal deficit, tax pressure, the new phase of the freezing of tariffs, inflation, exchange rate volatility, poverty and rising unemployment, which overlaps with a inevitable job retraining.

And, as if that were not enough, doubts about the incentives that move those who must define a sustainable economic policy abound.

Written by Argentina News

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