Ideally, the State would not be short of pesos or dollars. In other words, it should have what is called fiscal and commercial 𝘴𝘶𝘱𝘦𝘳𝘢𝘷𝘪𝘵. We will tell you about these concepts and how Argentina could achieve them in different installments.
When the state spends more than it takes in, that is, it does not have enough money to pay for its expenditures (fiscal 𝘥𝘦𝘦𝘧𝘪𝘤𝘪𝘪𝘵) it has two options: 𝐭𝐨𝐦𝐚𝐫 𝐝𝐞𝐮𝐝𝐚 or 𝐞𝐦𝐢𝐭𝐢𝐫 𝐦𝐚́𝐬 𝐝𝐢𝐧𝐞𝐫𝐨 of the one already in circulation.
By issuing money, i.e. printing banknotes, the false illusion of having more purchasing power is created. But printing banknotes is not the same as, for example, selling products and services to other countries and thus receiving genuine money for payment.
What is the difference? What "𝐫𝐞𝐬𝐩𝐚𝐥𝐝𝐚𝐥𝐝𝐚" that money you get. In one case, it is backed by trade in goods and services; in another, by absolutely nothing. As a consequence, our money is worth less and the currency is devalued. And as the currency devalues, we can buy less and less things with the same amount of money we had before. That is the 𝐢𝐧𝐟𝐥𝐚𝐜𝐢𝐨́𝐧. We all lose. Especially the poorest.
But there is something else: the Argentine State not only issues money but also pays interest in order to "take it out of the market", to prevent it from going to the dollar and generating a devaluation that would further fuel inflation.
Why, instead of paying interest, does it not generate the conditions for this money, already issued, to circulate and produce? That is to say, to do the other way around and back it up, after it has been issued, by the trade of goods and services? It is a very good question! We will also talk about it in future issues. Because Argentina is a time bomb and to prevent it from exploding, we need fiscal and monetary consistency and a productive plan with inclusion.
At Plan País Argentina we want 𝐏𝐨𝐥𝐢́𝐭𝐢𝐜𝐚𝐬 𝐝𝐞 𝐄𝐬𝐭𝐚𝐝𝐨 that transcend the governments in office and allow us to generate a 𝐩𝐥𝐚𝐧 𝐞𝐜𝐨𝐧𝐨́𝐦𝐢𝐜𝐨 𝐚 𝐥𝐚𝐫𝐠𝐨 𝐩𝐥𝐚𝐳𝐨 to get out of the crisis in which we have been submerged for decades.
We must inform ourselves and learn, in order to claim our right to prosperity.𝐏𝐥𝐚𝐧 𝐏𝐚𝐢́́𝐬 𝐩𝐚𝐫𝐚 𝐀𝐫𝐠𝐞𝐧𝐭𝐢𝐧𝐚.Let's do!
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