I can't fathom the mental gymnastics needed to enact this type of regulation.
You are essentially stopping the flow of foreign capital into the country on an economy with extreme inflation and unemployment rate.
People don't need beef. Trying to make an easily substituted luxury good affordable that is bringing a significant portion of all foreign capital into the country seems short sighted, to say the least.
I love Argentina, it's such a great place to visit, and is still hopefully the place I would retire, but politically I fear it might be headed towards Venezuela.
That this because regulation purpose is not fixing a problem, but making government look good.
Many people does not think in terms of 'flow of foreign capital', but in 'greedy exporters are hiking prices to get rich'. So forbidding exports and fixing prices look good to them (especially with propaganda support), while macroeconomic effects will go unnoticed.
(from experience in Russia, but Argentina looks quite similar in political structure)
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[ 2.3 ms ] story [ 28.2 ms ] threadYou are essentially stopping the flow of foreign capital into the country on an economy with extreme inflation and unemployment rate.
People don't need beef. Trying to make an easily substituted luxury good affordable that is bringing a significant portion of all foreign capital into the country seems short sighted, to say the least.
Welcome to Kirschnerism...
I love Argentina, it's such a great place to visit, and is still hopefully the place I would retire, but politically I fear it might be headed towards Venezuela.
I agree technically speaking, but try telling that to the average Argentinian ;)
Now I know who wrote it! Thank you!
Many people does not think in terms of 'flow of foreign capital', but in 'greedy exporters are hiking prices to get rich'. So forbidding exports and fixing prices look good to them (especially with propaganda support), while macroeconomic effects will go unnoticed.
(from experience in Russia, but Argentina looks quite similar in political structure)
This of course will lower three amount of beef being killed... And probably drive up domestic prices.
Unintended consequences