By Daniel A. Darrieux
In our beloved country there is a great paradox: a liberal National Constitution (beyond the reforms it underwent) that coexists with an authoritarian and omnipresent State
that suffocates the creative energies of those who make up the productive private sector. The so-called May Pact and the Base Law aim to recreate an institutional framework of respect for individual rights. “Guarantee the benefits of freedom” refers to the Preamble that Raúl Alfonsín recited. The creation of wealth needs a habitat that is favorable to it.As Ayn Rand, a great philosopher, pointed out, “freedom is the fundamental demand of the human mind.”
. Emphasizing that “a free mind and a free market are corollaries” Recovering the philosophy and praxis of the National Constitution, to overcome the economic and social disaster left by Kirchnerism, implies – among other reforms – advancing a policy of deregulation of the economy.It is crucial to eliminate procedures, permits and bureaucratic obstacles that slow down productive activity and generate higher expenses and a breeding ground for corruption.
.Regulations limit competition and the greater supply of goods and services, harming the consumer, who pays the price of other people’s privileges.
. They are promoted by prebendary businessmen, who obtain benefits from their contacts with political power.
Governors should be the first to promote deregulation of the airline market.
Daniel A. Darrieux, director of Economic Impact. Regarding the commercial airline market, it is urgent to move towards an open skies policy. Aerolíneas Argentinas is a quasi-monopoly that limits the greatest offer of flights and connectivity between cities in the interior. A restriction on the harmonious and federal development of the country.Governors should be the first to promote deregulation of the airline market
. We have to privatize. In his inauguration speech, President Milei expressed that: “everything that can be in the hands of the private sector will be in the private sector.”Juan Bautista Alberdi, intellectual author of our Constitution, maintained that “the idea of a public company is absurd and false in its economic basis”
.
- The 33 state companies lost US$6,481 M in 2022. Those that generated the largest deficits were: ENARSA, US$3,200 M (due to energy imports). Ferrocarriles Argentinos, with a red of US$1,329 M., and Aerolíneas Argentinas, US$609 million. In a decade, Airlines cost taxpayers more than $6 billion.
- US$6 billion
This is what Aerolíneas Argentinas has cost taxpayers in a decade. More information: A report from the Libertad y Progreso Foundation – based on the Ministry of Economy – indicates that the operating deficit was $1.3 trillion in the 12 months to September 2023
(latest data available), equivalent to about US$2,897 million. A drain on resources. State companies have insurmountable flaws: there are no incentives for efficiency, they never go bankrupt.
Their losses are paid by the people. Corruption, overpricing, opacity and lack of controls are a constant. They are nests of gnocchi, great loot for political clientelism. What will be the reality of the state companies of Río Negro and Neuquén?It is clear that those who make a living from the public spending business or because of ideology, oppose reforms that allow dismantling the corporate and mafia scheme. Those who produce nothing intend to continue living at the expense of those who produce. l
The scam with social plans and trust funds is proof of this. The disastrous state of the roads, which cause deaths, reflects another failure of the State.The different taxes on fuel, covers, patents, are being used to finance unproductive public spending
. It would be irresponsible for the toll to be used for the same purposes.
Beyond the forms and certain inconsistencies, the orientation of the national government is indicated, aligned with the philosophy of our Constitution.
Daniel A. Darrieux, Director of Economic Impact.Chile’s public-private participation scheme is a possible solution
. Since former President Patricio Aylwin privatized most of the public works system, investments worth 28 billion dollars have been made, according to Agustín Barletti in a column in the newspaper El Cronista. The participation of the private sector in the construction of public infrastructure must be promoted. Chile’s road network is considered one of the best in Latin America. Beyond the forms and certain inconsistencies,The orientation of the national government is indicated, aligned with the philosophy of our Constitution
. The implementation of ideas through proper management is crucial to the success of a government plan. To close: it is necessary to revalue the genuine business role, which has an ethical foundation, supported by values: freedom, private property, effort, risk, innovation and merit, among others.It is vital to generate incentives for productive people who create wealth
. Protagonists of development, despite governments.
Director of ECONOMIC IMPACT. Forum Leader of REF Neuquén and Río Negro.
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