“They won’t be successful in attracting capital this way,” he said in a telephone interview. “Nobody will trust a government that repeatedly violates laws and doesn’t value contracts.”
There was a time when Argentina had a higher standard of living than the United States.
100 years ago immigrants from Europe looking for a better life flowed to both countries. Argentina was once seen as a land of opportunity. There’s lots of land, plenty of natural resources, and at one time had a relatively competent government.
It really started with the Fascist Peronists in the 40s. As the state expanded through the 20th Century, the economic opportunity for people retreated. Now, this one time jewel of South America stares again at a 3rd world reality.
Control freaks (like the Peronists in Argentina or the city council of Detroit) always screw up the economy. Some do it faster than others. But in the end the enemies of economic freedom always kill the golden goose. They can’t help it, they become predators when parasitism no longer works. (Though they almost always drape themselves in the fleece of “social justice.”)
The lesson here is that if one makes it hard to do business in a country or city the wealth will leave. Sooner or later the only thing left is a rotting and debt ridden carcass.
Don’t cry for Argentina, it brought it on itself.
Si se puede.