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Montevideo, May 26th 2019 - 05:12 UTC
Argentina’s Senate on Wednesday gave final approval to the government’s tax reform and 2018 budget plan, part of President Mauricio Macri’s push to cut business costs and attract investment to Latin America’s No. 3 economy. Read full article
What Macri and his team of CEOs is doing is very simple:
They are borrowing like crazy and attract lenders by paying unmatched interest rates. From about USD 160 billion owed in Jan. 2016, foreign debt has gone up to about USD 216 billion in July 2017.
They use part of the borrowed money on public works projects that mean good business for friendly entrepreneurs and give an impression things are somehow working.
They are shrinking taxes for the rich and reducing the income of the most vulnerable, starting with retirees and children and aiming to all workers in the coming steps.
They are shrinking the domestic productive sector by killing small and medium size enterprises that can't or won't bother to compete with imported merchandise.
Even friendly economists are warning the Macri government that the country is running to a crise of unprecedented proportions.
No worries, Macri says: We'll borrow some more.
That is why a package of laws changing the way retirees' pensions are updated, how the state finances itself through taxes and how employees are contracted and compensated are being pushed through without any such thing as a compromise.
That is why things aren't looking good for opponents to this forced regression.
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