Liberty MavenIs America Going the Way of Argentina?
February 16th, 2009 12:30 pm | by Mike Miller | Published in Bailouts, Banking, Big Government, Debt, Economics, Federal Reserve, Free Market, government spending, History, inflation, jobs, Liberty, Market Regulation, Money, national debt, Obama, Politics, Socialism, Taxes | 3 Responses
In an op-ed piece at the Washington Times, Jeffrey T. Kuhner compares the path the United States is taking to that of Argentina in the 1940s:
What is not commonly known about Argentina is that prior to World War II, it was an economic powerhouse. Beginning in the 1880s and continuing through the 1920s and 1930s, it was regarded as one of the most prosperous and advanced nations in the world.
Argentina had a strong industrial base, thriving agricultural exports and a broad and expanding middle class. Like America, it served as a magnet for immigrants from all over the world, especially Italians. Within 15 years, however, Argentina went from being one of the richest to one of the poorest countries.
This was due largely to Peronist policies. Upon coming to office, Peron, along with his popular wife, Eva, established a corporatist state characterized by lavish social spending, elaborate welfare programs, protectionism, confiscatory taxation and runaway deficits.
Lavish social spending? Welfare programs? Protectionism? Taxation? Runaway deficits? Sound familiar?
With the Federal Reserve embracing a policy of quantitative easing (printing money), inflation is bound to result just as it did in Argentina, Weimar, and so many other nations whose governments and central banks debased their fiat currencies until the currency was destroyed and middle class disappeared.
Referring to Juan Peron, Argentina’s leader, Kuhner writes:
The failure of Peronism should serve as a warning: Socialism and a sky-rocketing national debt can permanently impoverish even the wealthiest nations. America is not immune from the laws of economics. Prosperous republics – ancient Rome, the Italian city-states, Argentina – have seen their wealth squandered, never to recover.
Peron and his famous wife, Eva, is compared to our new President and his First Lady:
Mr. Obama is taking the first dangerous steps toward an American version of Peronism. His followers see him as a political messiah, a revolutionary change agent who will foster national cohesion and unity. He and the Democrats are plundering the state, using it as a vehicle to reward supporters (and punish foes). He is our Dear Leader, whose image is everywhere from magazine covers to T-shirts to baseball caps. His wife, Michelle, is the Eva Peron of our time – glamorous, chic, a fashion trend-setter who is beloved by the media.
Most ominously, Mr. Obama is repeating the statist populism that didn’t work in Argentina, and will not work in America. Professor Philip Jenkins wryly observes that the United States of America risks becoming “the United States of Argentina.” He is right. Those who fail to learn from history are condemned to repeat it.
The full editorial is here.
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February 16th, 2009 at 4:25 pm (#)
[...] Is America Going the Way of Argentina? February 16th, 2009 12:30 pm | by Mike Miller In an op-ed piece at the Washington Times, Jeffrey T. Kuhner compares the path the United States is taking to that of Argentina in the 1940s:What is not commonly known about Argentina is that prior to World War II, it was an economic powerhouse. Beginning in the 1880s and continuing through the 1920s and 1930s, it was regarded as one of the most prosperous and advanced nations in the world. Argentina had a strong industrial base, thriving agricultural exports and a broad and expanding middle class. Like America, it served as a magnet for immigrants from all over the world, especially Italians. Within 15 years, however, Argentina went from being one of the richest to one of the poorest countries. This was due largely to Peronist policies. Upon coming to office, Peron, along with his popular wife, Eva, established a corporatist state characterized by lavish social spending, elaborate welfare programs, protectionism, confiscatory taxation and runaway deficits. Lavish social spending? Welfare programs? Protectionism? Taxation? Runaway deficits? Sound familiar? With the Federal Reserve embracing a policy of quantitative easing (printing money), inflation is bound to result just as it did in Argentina, Weimar, and so many other nations whose governments and central banks debased their fiat currencies until the currency was destroyed and middle class disappeared. Referring to Juan Peron, Argentina’s leader, Kuhner writes:The failure of Peronism should serve as a warning: Socialism and a sky-rocketing national debt can permanently impoverish even the wealthiest nations. America is not immune from the laws of economics. Prosperous republics – ancient Rome, the Italian city-states, Argentina – have seen their wealth squandered, never to recover. Peron and his famous wife, Eva, is compared to our new President and his First Lady:Mr. Obama is taking the first dangerous steps toward an American version of Peronism. His followers see him as a political messiah, a revolutionary change agent who will foster national cohesion and unity. He and the Democrats are plundering the state, using it as a vehicle to reward supporters (and punish foes). He is our Dear Leader, whose image is everywhere from magazine covers to T-shirts to baseball caps. His wife, Michelle, is the Eva Peron of our time – glamorous, chic, a fashion trend-setter who is beloved by the media. Most ominously, Mr. Obama is repeating the statist populism that didn’t work in Argentina, and will not work in America. Professor Philip Jenkins wryly observes that the United States of America risks becoming “the United States of Argentina.” He is right. Those who fail to learn from history are condemned to repeat it. __________________ For less than the price of … One cup of Starbucks a month, You can become a member of the NRA and help support your second amendment rights – NRA Online Membership So-called "Common Sense Gun Laws" will take us all to the day when the last single-shot shotgun that grandpa owned is cut into pieces. Al Capone was a Community Organizer. [...]
April 29th, 2009 at 6:25 pm (#)
The sad truth is that most of America does not believe the above can happen here; most have forgotten Econ101 in favor of "gimme and gimme now." Strap in as it's gonna get fugly.
October 1st, 2009 at 6:54 am (#)
America will not become like Agentina , it is already worse off. Don't just compare econom ic statistics. America has a lower literacy rate than Argentina. America has a higher murder rate and physical violence is higher. And to top it off, you wouldn't see anyone caught dead wearing stone wash jeans and sporting a mullet in Buenos Aires.