Trust in the stability of regulations and prices makes a society richer.

Argentina has seen plenty of economic plans but suffers from the absence of stable rules. Nobel laureates Frederick Hayek, Ronald Coase and Vernon Smith analyzed the effort that it takes to reach consensus.

INFOBAE: The magic of progress lies in getting the contracts for increasingly specialized transactions right.

Each commercial advance opens better deals, which are facilitated by the stability of government regulations and general price levels.

Indeed, there is some correspondence between the best normative specifications, price standardization and GDP. On the contrary, each imposition by the authorities requires recalculating negotiations with multitudes of actors. Exacerbating conflicts, wasting efforts.

The same happens regarding inflation and currency devaluations. The solutions depend on the existing institutions; each normative variation disturbs the agreed compensation. Hence, the continuous regulatory, price and exchange shocks require additional efforts that end up impoverishing our country. They unsettle businesses, reinstating obstacles that had been overcome.

Since individual skills and technologies are scattered among the 8,000 million humans that populate different geographies of the planet, the great gaps between the national average income are born from different cultures, consensing lasting regulations.

Those who have faced the same procedures in different places confirm the existence of these obstacles. There are plenty of requirements in lagging countries, explaining the difference in national GDP rankings, from USD 300 per year per inhabitant in Burundi and South Sudan, to USD 100,000 in Ireland and USD 90,000 in Norway and Switzerland.

To put it black on white, private companies continually compete to agree on the most favorable conditions, persuading clients, employees and other participants.

More than half of the world's population resides in jurisdictions that lacks transparent regulations; That is why they generate barely 10% of the world's GDP, having the lowest income, lacking freedoms and with wide variations between them (a median of USD 300 to USD 6,650, between the extreme national averages of the group). Just 10% of humans, who live in nations with stable and transparent rules, generate 50% of the world's GDP and the highest income.

Leaders change the rules to gain followers, without noticing that each imposed change, favorable for some, impoverishes all. Forced regulations contract assets. Only the voluntary transactions of those affected precisely value the properties, by competing to satisfy individual needs.

ARGENTINE DEVALUATION:

Argentina was one of the most prosperous nations in the world between 1890 and 1920. A century later, in 1980, at the start of the IMF's economic outlook series, GDP per capita was still three times the world average. In a sharp drop, the GDP per inhabitant equals the world average of USD 13,400 per year, in 2022. Terrible decline, typical of a society without lasting rules, where competition cannot work.