The Economic Crisis in Argentina | Explained

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In this video, we explain some of the major economic issues in Argentina in 2018.

💬 If you’d like to get in touch, you can reach us on social media or leave a comment on this video - we read all of them and try to respond to as many people as possible.

TRADING FUNDAMENTALS
Argentina has been going through some major economic issues. In 2018, it received two loans from the IMF - the largest loans in history. However, a year later and it seems the economic issues are not resolved. So, what's going on in the economy?

[ashoks]

Politicians/Beaucrats all over the world appears to have same DNA when it comes to money .

[rosewood]

1. The currency needs to have value as a medium of exchange. So move to the US dollar. Or link a new currency to the gold standard. E.g. Gold Pesos
2. The country must have a balanced budget.
3. The country must be run efficiently. This will require development of a significant private sector and labour reform
4. The government public sector needs massive streamling to focus on service delivery at best practice and cost.

In short; ruthless targeted financial management. But do it publicly so the community are involved and can have some input into some of the structural changes that are made.

[nicolasveron]

Hi, I'm Argentine and things are going backwards here. many companies went bankrupt and multinationals are slowly leaving the country. One dollar is worth around 130 Argentine pesos and that is very serious. whatever, f

[billetedepeso]

Describe your economy with a song prhase

Me:it's going down, it's going down

[danieleyre]

In 2015 one of my work colleagues was this young Italian-Argentine woman from a very privileged background.
She was a massive supporter of Mauricio Macri and even had a picture of him on her desk. She told me vehemently that the Panama papers didn't matter because he would fix Argentina's problems.

If I ever bump into her again I'm not sure if I'll refrain from asking...

[Ready]

The official exchange rate is $1USD/227ARP today. The black market rate is over 300 now. 😮

[mtabernig]

El mismo problema que tienen en Argentina. Los Argentinos no critican el
gobierno, creen que lo que en gobierno está bien y no critican. La razón que
Argentina no avanza es por el problema de deuda externa siempre piden dinero
del exterior y después no pueden pagar. 3nsima los Argentinos les llaman
"buitres" a los deudores. E acá el problema; Argentina ya vive con
gobierno populista, siguen expandiendo planes inclusivo a personas que vienen
de países limítrofes. Esto es un  camino que
ningún país no puede pagar. Simplemente argentina no puede pagar esos planes
entonces acuden a imprimir dinero develizando el dinero, Este acto de imprimir
dinero roba a la gente del valor adquisitivo de el dinero que posee, Los
jubilados están cobrando la mitad de lo que les corresponde después de haber
aportado toda su vida. Ese dinero aportado por trabajadores esta protegido por
ley, sin embargo el gobierno roba esos fondos y no les da vergüenza que les
roban a la sección sr la populación mas vulnerable. La razón es el saqueo por
parte del gobierno para, también, pagar sus planes y los ñoquis. Todo el mundo
tiene derecho a criticar el gobierno.





Hasta que no se haga y el pueblo se haga escuchar las cosas no van a
cambiar. Oid mortales el grito sagrado de los ciudadanos. Rompan las cadenas y
hagan oírse.

[jeffhermida]

This is happening in Lebanon right now

[ivetarailaite]

How are the property prices? Did they also increase or drop?

[banda.t]

It slightly relates with wt zim has been facing but its currently taking strong measures to tackle that..

[sauradeepbiswas]

my masters class of economics watches your videos as a part of our syllabus

[miku]

Is there a general proposed solution or is everyone ok with history repeating itself? Thanks for the informative content!

[fernando_u]

the problem is not the debt that Argentina took from the IMF but the size of the state, the huge amount of taxes, lousy education that the Peronists left us with, the corruption on the provinces, the co-participation formula of redistribution (the country gives a portion of the GDP to the less productive provinces and this make them less productive because the don't have insentive to make their provinces productive), the amounts of regulations on every type of business and the restrictive labour regulations that doesn't help business to employee people, the labor unions and the corruption in wich they are involved, the "villas de emergencia" (places like the favelas in were poor people live without paying taxes and were narcos are hidden), the narcos and the drugs, the violent politic movements like "montoneros", "La cámpora", the number of kids on poverty and doesn't have a father figure or an insentive to study or work so they rob or try to get employee by the corrupt governor's and by so they gave them more power, and the list of problems go on and on.
The Problem is systematic. We have a system that doesn't reward hard work or higher education, on the provinces and in areas that have poverty the corrupt politicians lie to those people and they promised that they are gonna received mony without doing anything. And people know they don't understand economy and they don't want to understand it.
The problem is socialism or as how we called it here Peronismo.

[heidimathews]

Thank you very much for the video. I'm an English teacher here in Argentina, and this will help me greatly in the unit on Economy. Is there an economic fact file video made for Argentina?

[candetorres]

Economic-fact file on Argentina, please!

[mickeyrat]

Maybe I can finally afford a studio in Palermo now.!

[TheGoldFinger]

the best example of a poorly managed but rich (natural resources) country

[vinm]

With your permission : I've made a video describing the historical roots
of Spanish-American failure, which includes a terrific comparison of
the Venetian Republic ( similar to North America - governed by merchant assembly)
with the Papal States (governed by a religious despot ) similar to Spanish-America.

[ronievieira]

It is not accurate. If you have an interest rate of 50% and an inflation of 60%, investors are losing money. High interest is useless if inflation is not in check

[TheSusaneneely]

I guess we’ll see it in America, too!!