Ideally, the state would not be short of pesos or dollars. In other words, it would have what is called fiscal and commercial 𝘴𝘶𝘱𝘦𝘳𝘢𝘷𝘪𝘵. We will talk about these concepts and how Argentina could achieve them in different instalments.
When the state spends more than it takes in, i.e. it does not have enough money to cover its expenditure (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 more purchasing power is created. But printing banknotes is not the same as, for example, selling goods and services to other countries and thus receiving genuine money for payment.
What is the difference? What "𝐫𝐞𝐬𝐬𝐩𝐚𝐥𝐝𝐚" that money gets. 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 is devalued, 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 to "take it out of the market", to prevent it from going into the dollar and generating a devaluation that would further fuel inflation.
Instead of paying interest, why not create the conditions for this money, already issued, to circulate and produce? In other words, do the reverse and back it up, after it has been issued, by trade in goods and services? That's a very good question! We will also discuss 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.
In Plan País Argentina we want 𝐏𝐨𝐥𝐢́𝐭𝐢𝐜𝐚𝐬 𝐝𝐞 𝐄𝐬𝐭𝐚𝐝𝐨 that transcend the governments in office and allow us to generate an 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, so that we can claim our right to prosperity.𝐏𝐥𝐚𝐧 𝐏𝐚𝐢́́𝐬 𝐩𝐚𝐫𝐚 𝐀𝐫𝐠𝐞𝐧𝐭𝐢𝐧𝐚.Let's do it!
Join in: www.planpaisargentina.org
