Thursday, April 8, 2021

USA, Don't Try to be Argentina





The title is not meant to be facetious, and I must hope that no Argentinian is offended.  The world knows the depth and distress that befell the once wealthy nation that is Argentina. The steady stream of its citizens leaving the country in the last  three decades or so add to the travails of a country that was once  the destination for over six million immigrants in the late 19th century, second only to those who came to the U.S.  Today, those who were able to leave  know the value of their fortune for just that reason alone.  

Must the world at large learn the lesson of Argentina? I wrote in an earlier musing that either history is an incompetent teacher or people are inept students and, arguably but sadly, we  can now conclude that human nature and politics are poor substitute teachers. For the first time in human history, the lesson plan is laid bare, live and out in the open for the world to see in Argentina. And Venezuela, or other failed states in that region, for that matter. Will any nation learn from it?  Will the big, mighty USA grasp  just even a hint?

First, we must search the archives of the past for context, but we will not travel too far back in history to make sense of it today.

Argentina's history  almost mirrored that of the U.S. Its story began in 1776 (date sounds familiar?).  "The declaration and fight for independence (1810–1818) was followed by an extended civil war that lasted until 1861, culminating in the country's reorganization as a federation of provinces with Buenos Aires as its capital city. The country thereafter enjoyed relative peace and stability, with several waves of European immigration, mainly Italians and Spaniards, radically reshaping its cultural and demographic outlook; 62.5% of the population has full or partial Italian ancestry".

"The almost-unparalleled increase in prosperity led to Argentina becoming the seventh wealthiest nation in the world by the early 20th century".  The economy relied on exports of beef and agricultural products. 

Although the United States is castigated even now for its history of slavery, all the colonized territories from Barbados to Argentina and Brazil had their share of the slave trading era to satisfy the needs of the labor intensive business of agriculture and animal husbandry.  Some of the territories - they are independent nations now - have a share of the black population far higher, as a percentage, than it is in the U.S. The Caribbean islands, including Cuba, Jamaica and Haiti and the Dominican republic  and Brazil  have higher black  demographics in their population. Though not so much in Argentina, it is a  little known fact  that, recently, of all times, it has its own Black Lives Matter movement.

In the long fight for ideological influence between democracy and communism, underscored during the cold war, Cuba became the western hemisphere's showcase for the Soviet style communism when Fidel Castro's movement ousted President Batista. In the guise of socialism, political radicalism first infiltrated Cuba's elective government in the mid 50's.  It took a while after the revolution in 1959, before Castro finally acknowledged and declared Cuba a communist nation in 1965.  From there he exported the ideology to much of South America.  Che Guevara, an Argentine-born physician met the Castro brothers in Mexico City, became a naturalized Cuban a short time later, then he set out to export the ideology to South America, including a foray into Africa's Congo.  It was in Bolivia where he was arrested and executed.

During that period of political upheavals 17 of 20 countries in the Latin American region were dictatorships.  Mexico  had an elective government but it was a one-party system for decades. There is already so much that had been written about Argentina and Venezuela. A video has been going around for some time now. I had gotten it twice already, so far.  The reader may want to watch it.  The background music was sang by Madonna, "Don't Cry for Me Argentina", which is, of course, the theme of the Broadway musical, "Evita".  A copy of the link for anyone interested, is at the bottom of this blog.

I will not rehash all that had already been said and written about Argentina's economic, social and political misfortunes, except perhaps to cite one quick commentary from The Economist magazine seven years ago, "The Parable of Argentina": 

"There are lessons for many governments from one country’s 100 years of decline."

"A CENTURY ago, when Harrods { Upscale London Dept. Store} decided to set up its first overseas emporium, it chose Buenos Aires. In 1914 Argentina stood out as the country of the future. Its economy had grown faster than America’s over the previous four decades. Its GDP per head was higher than Germany’s, France’s or Italy’s. It boasted wonderfully fertile agricultural land, a sunny climate, a new democracy (universal male suffrage was introduced in 1912), an educated population and the world’s most erotic dance. Immigrants tangoed in from everywhere. For the young and ambitious, the choice between Argentina and California was a hard one".

What went wrong?  As mentioned, so much had already been said. However, there is something to be learned, and the U.S. may want to pay attention.

Three years ago I wrote in "Ancestry, Fredericksburg, Texas", the following:

"Mid 19th century Europe was a period of discontent with the political climate and economic conditions that were pretty much held over by monarchy and nobility. Many Europeans, Germans included, heard of a new system that was growing out of a former British colony, where the hopes of ordinary people were lit by a new political experiment - democracy. One German nobleman denounced his nobility to lead a group of German immigrants to resettle their lives at a place called America".

That new political experiment and an economic system based on capitalism that was the United States thrived like no other nation had been before.  

Today, there are signs of fraying at the edges of what once was a glistening tapestry of one government system and a burgeoning economy that worked perfectly hand in hand for over two centuries now. 

What was once a colony became a nation that had a pivotal, if not decisively crucial, role in ending two world wars in Europe and the Pacific.  By the 50's and 60's, the U.S. was a full- fledge superpower.

One generation later, beginning in the 80's, which followed the so-called free-wheeling social revolution, exemplified by Woodstock of the 60's, the movement to transform the government began. Another generation came and in 2008 the pledge to transform the nation along progressive liberal lines was out in the open. Today, the trend is continuing but more so like a coiled spring snapping back into action after a four year compression that repressed the movement of liberalism.  

The 2020 election happened.  The new administration resumes the transformation so that  the era of high taxes, almost unfettered social programs and entitlements, federally focalized control over state rights, fueled by a woke generation and cancel culture, and a compliant media are well on their way to upset the once well balanced two-party democratic system  towards a monolithic power structure.

The Huffington Post, not exactly a conservative medium, published in 2011 a list of 53 types of taxes imposed on the American people  that did not exist a hundred years ago in the country's history. That list is even longer today.   On top of the Federal Income Tax, we have the inheritance tax, school tax, all kinds of sales taxes and today, the gasoline tax is over $.47 per gallon, and there are 48 more on the tax codes that are a heavy yoke for the American public and small businesses to carry on its back. It is true indeed that death is the only way to avoid taxes.

The taxpaying public has a right to be appalled by the fact that as more taxes were imposed and collected, the more the government is unable to balance its budget.  There is something so fundamentally wrong with that.  For that incoherent phenomenon alone, we can only point to government as the source of the problem, as it was with Argentina.  It is as if democracy that was the foundation of this country since 1776, has already weakened so badly  to be comparable to what ails this country's real physical infrastructures.

If central planning is the Achilles heel of socialism or communism, American democracy is suffering from  severe skeletal fractures at several places. It is swollen with 3 million federal employees, 600,000 of them work for the U.S. postal service alone. The woke generation and cancel culture have singlehandedly created a society cowering in fear of being labeled racist this, xenophobic that,  while businesses are caving in to the slightest tremor created by social media.  Monolithic censorship will result in a single political system.  It shall be a victory for the dominant party but a disaster for democracy.

The 2 trillion dollar infrastructure bill is just the opening bid for what will be a massive spending agenda, but the congresswoman from Queens New York said this, I know that may be an eye-popping figure for some people, but we need to understand that we are in a devastating economic moment,” Ocasio-Cortez said. “Millions of people in the United States are unemployed. We have a truly crippled healthcare system and a planetary crisis on our hands. We’re the wealthiest nation in the history of the world. So we can do $10 trillion.”

That reference to "planetary crisis" is all about the green new deal.  It is so easy for a lot of these politicians to propose all these spending because it is not their money.  Look up or Google the "Solyndra scandal" and shovel ready jobs between 2008 and 2009, that did not even touch dirt.  Look to the Spanish version of the green new deal earlier that was a total failure.

If this continues, the country will go on to print more money to fund the social programs it cannot afford while mismanaging the economy and its educational system where the teacher's union is now a significant voting block and political contributor. Government bureaucracy that permeates the  Postal Service, Social Security Administration, The VA and many other agencies, is the single most pervasive cause of waste, inefficiencies and enabler of incompetence. Amtrak and the USPS are two examples that, if they were corporations, should have gone under a long time ago.  If they were traded in the stock exchange, their price (what taxpayers pay) to earning ratios (P/E) alone would have been enough indicator to halt operations.  But, they are still around because government has taken the phenomenon of "throwing good money after bad" and tossing it into the proverbial bottomless pit.

From Forbes: "Argentina's highest annual rate of inflation was a staggering 20,262% in the 12 month period ending April 1990. That definitely constitutes hyperinflation! To translate using U.S. dollars, an item which cost $1 in May 1989 would have cost $203.62 one year later. Argentina was in a depression from late 1998 to 2002."

What are the odds that politicians will have learned something from the Argentina story?  

American readers should care about what can be learned from Argentina. All that we need to do is look back at history.  Relics of history are not difficult to find if one must look at what happened then.  Ever wonder what happened to great civilizations that built the Acropolis of Athens and the Temple of Delphi, the Colosseum of Rome, just to name a few.  Or, the pyramids of Egypt.









Will tourists a thousand years from now be clamoring to see the ruins of the Statue of Liberty, the Washington Monument, or the surviving pillars of the Golden Gate Bridge?  Farfetched?  If history continues to teach but we refuse to learn, tourists of the future will see for themselves but politicians will never foresee nor look at the consequences of what they do today. And they will no longer be around to witness the future they created.
          
 USA, Don't try to be Argentina

Copy the link below to your search bar to listen to the song, that accompanies the video about Argentina that I mentioned several paragraphs earlier.  It is an https: file and safe.

https://mail.google.com/mail/u/0?ui=2&ik=295c8f1d05&attid=0.1&permmsgid=msg-f:1696037345660737989&th=178988fad9e799c5&view=att&disp=safe

The blog that precedes this is about a longer historical scale that tells how we got to this point in our history.






  

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