By usurping property, governments corrupt activities, ruin the country and strain their own management

Consejero Académico en Libertad y Progreso

INFOBAE – What would football be if the referees banned plays by Messi and Cristiano Ronaldo? By telling them what to do and what not to do during the game? Worse still, if the indications depended on the position in the table, friendship or militancy.

We progress using our own skills to satisfy the needs of others, which we discover by comparing results. Different people stand out in increasingly specialized fields. We call some scientists, others lawyers, teachers; others are prominent artists, goldsmiths. Entrepreneurs risk offering new goods, ways of producing, satisfying and reaching buyers, with a thousand different openings. Income growth is the miracle of freedom: each one takes advantage of their own differences in being a person, of particular needs and abilities. Long live the liberations that reveal differences! The growth of income is the miracle of freedom: each one takes advantage of the differences of being people, of particular needs and abilities

A network of skills, spread across the globe, supports the voluntary exchanges. With very different results, depending on redundant restrictions imposed in different markets.

The chart measures the average incomes of the 192 IMF countries. A sort of World Championship of income in 2020.

Ingresos en dólares

The differences are astonishing. Those in Burundi, the country with the fewest freedoms, get $260 a year. Switzerland and Luxembourg, the nations with the greatest freedoms, get $80,000 and $100,000 per year per inhabitant. Argentines produced 8,400 dollars, at the official exchange rate, 32% lower than the world average. A poor country. Far from the top 20 richest nations, which averaged $54,000 a year in income. Messi on the field, but not very skilled at governing.

The summarized history of Argentina is the following. Until 1850 it was a desert, poor in goods and liberties. The National Organization, with the Constitution of 1853/60, attracted millions of immigrants and the Argentines themselves to educate themselves, produce and enjoy growing incomes. The 1869 census already counted 1.8 million inhabitants, 33% immigrants; in 1913, 7.7 million, with the highest income in the world. Explosive development! In contrast, in the last 40 years, the purchasing power of Argentines fell to a third, with the loss of individual freedoms. In Latin America, only Venezuela lost more, 90%. The rest of the region grew 13 percent.

Argentina plays the wrong game. Leaders hamper income-creating activities, superb officials dictate new “adjustments” every day. As people progress by developing their different abilities, our leaders restrict, surprise, change rules, rewards and punishments. They make it difficult to produce, plan a future for the family and associates. In their interventions, the rulers usurp and displace private decisions and properties. The global progress of the competitive specialization of the individual skills of billions of people is replaced by the superb incompetence of decisions concentrated in the government.In the last 40 years, the purchasing power of Argentines fell to a third, with the loss of individual freedoms. In Latin America, only Venezuela lost more, 90%. The rest of the region grew 13 percent

The apparent riches of nature do not constitute productive resources when government interventions hinder contracts between potential stakeholders, explains the book “For a fairer and more flourishing country.” The planet always contained the same natural assets, but humanity was miserable until, recently, they freed themselves from obstacles and began the discovery: agreeing to contracts to satisfy their own and others’ needs through voluntary exchanges. La Pampa Húmeda is the work of the business climate, not the weather.

What are productive resources? The activities are made productive by agreeing reciprocal benefits between the interested parties. They work, pay and collect. However, on a daily basis we see the tremendous difficulties in fulfilling contracts. Taxes, regulatory surprises, prevent production, adequate staffing, dispose of properties. The most defaulting state on the planet. The successive breaches of commitments and state debts are just a sample. They sign with the best of intentions until they find reasons to default. Nor that the authorities complain about the generous credit granted to the previous government. Do they not warn that the creditors will anticipate facing the reproaches of the next government?

The corruption of different rules according to the occasion, person, increases the chaos imposed by contradictory policies. They issue currency without restraint and impose price caps, rates, exchange rates, differentials to contain them, according to each case. The state increases unproductive expenses and taxes to finance them. The resulting greater poverty justifies new expenses to attend it. An Endless Career ICSID Headquarters, Washington ICSID Headquarters, Washington

The novelties aggravate the uncertainty of the contracts, contracting productions and properties. The flight of businesses and income is not surprising.

Countries advance in competition, freeing those who satisfy individual needs, freely determined by each person, from unnecessary obstacles. For that, the Constitution guarantees freedoms. Advanced are the countries that remove redundant obstacles. The overwhelming proof of its success is in the income achieved with fair, stable rules, the same for all.

Although the national anthem exalts “Freedom, freedom!” we don’t seem convinced. Freedom implies that individuals decide independently and develop their personal skills as necessary. It bothers the leaders not to control the people.

Freedom is the seasoning that completes the development and happiness of each person, reaching the heights of satisfaction. Freedom is tested by competing. In soccer, competition leads to better plays, teams. In personal relationships, competition leads to happiness, to the fullness of achievement. In the economy, to income, there is no advanced country whose political leaders earn more than Argentines, while the population is impoverished

Argentine corruption gets competition from militants. Those most aligned with the leaders ascend, not those focused on satisfying people. Businesses thrive by inventing stories that justify favors, preferences. Do not call our attention if we are descending in the championship of the income.

There is no advanced country whose political leaders earn more than the Argentines, while the population is impoverished. No country devotes so much revenue to its political leaders. No wealthy nation has prominent officials collecting salaries along with gigantic pensions, relative to the general population. Neither judges, officials, businessmen, artists, so aligned with politicians

Societies focused on pleasing their politicians are less prosperous than those that serve individual needs and develop the skills of the population. Politicians confront the public when they leave the script that we call the Constitution.

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