Within a couple of weeks, there will be empty store-shelves. There-after, riots. The Argentine peso is trading at half its official value on the black market (meaning the US dollar costs twice the official rate).
From what I’ve heard, the public is again starting to have enough of all this nonsense. Kirchner may have to do what earlier failed presidents have done and take a helicopter out, before this is over.
Hows that socialist revolution working for you? Ah, just as planned……
And now price controls. These people aren’t even smart enough to come in out of the rain.
I hate “intellectual” hubris. Get a laugh of the comments being posted here.
http://consultingbyrpm.com/blog/2013/02/dean-baker-is-not-very-creative.html#comments
Good luck Argentina! I hope your country doesn’t go down the drain and into a tombstone with this recent development. Hopefully this won’t happen in the States!
All I could take from that was “Never argue Ricardian equivalence”. And actually, one shouldn’t – because while it may hold in general (like any correct economic law) it certainly does not hold “in particular”. Or, to put it simply, “Homo Economicus” is an ideal construction of an imperfect world.
As for the argument that the private sector does not in the end adapt to higher government spending by lowering their spending – thats like saying that both the public and private sector can consume the same resources. Would love to see that in action.