Joe Biden managed to get Senators Kyrsten Sinema and Joe Manchin onboard with his big spending reconciliation bill with the Orwellian name of “Inflation Reduction Act.”
There’s no actual proof it will bring down inflation. Though by forcing this through as soon as possible, they can avoid messy questions and turn up the dials of government spending to sky-high levels.
The reason Biden and the left want to approach inflation this way with huge government action is straight from a globalist left-wing playbook. It enriches the inner circle and devalues the labor and lives of ordinary people.
We can currently see the extreme of this philosophy playing out in Argentina and it is not a pretty sight at all.
Argentina on Track to Hit 90% Inflation
Argentina is currently suffering an average of 60% inflation. It is projected to reach 90% by December. The employment rate among the Argentinian adult segment of the population is around 57%.
Banks have huge lines as people try to get any money out they still can. People are doing everything they can to get increasingly worthless Argentine pesos (ARS) turned into American dollars (USD) as quickly as possible.
The result is black market currency dealers are giving less and less USD per ARS since there is such high demand. People’s money and savings are running through their hands like quicksand as the country turns into a giant disaster.
The leftist government is finally being forced to turn to heavy cuts and austerity. This comes as a result of spending recklessly with all sorts of false promises and trying to run the country on handouts.
Most of the people no longer want to work, especially for low-wage jobs, and would rather collect payouts from the government instead.
Those who are working are growing increasingly sick of the high taxes that are being paid directly into the hands of those who refuse to work.
In other words, Argentina has turned into a Frankenstein’s monster and is on track to becoming the next Venezuela.
Argentina is collapsing … again.
People are refusing to work as the govt runs out of money and cuts subsidy programs for food & fuel
Inflation over 60%
"Half of our country doesn’t want a job, and the ones that do, don’t want to pay the taxes for the others,” pic.twitter.com/S98Ah1LUUl
— Wall Street Silver (@WallStreetSilv) July 31, 2022
All of This Was Avoidable
Listen, the state of the world is clearly not good right now. We have Russia waging a war, the global food supply chain on tenterhooks, and China menacing Taiwan.
We’re coming out of a two-year unnecessary lockdown that did nothing to fight the pandemic and we have all sorts of rising crime rates and other problems.
Though if there’s a right response and a wrong response, far too many countries have chosen the wrong response; they have opened up the floodgates of spending and tried to spend away the problem.
Argentina, which is run by center-left leader Alberto Ángel Fernández and far-left Peronist VP Cristina Fernández de Kirchner, is suffering from terrible leadership that has spent the nation into oblivion.
Unlike the effective and savvy leadership of Jair Bolsonaro in neighboring Brazil, which is increasingly on track to become an economic powerhouse and managed inflation much more effectively, Argentina is full of infighting and chaos.
They face the consequences of an out-of-control, leftist government.
YIKES: Mobs in Argentina just tried to break into a car containing the Minister of Economy, who is responsible for huge recent inflation. The people will not stand for the intentional destruction of their livelihoods. pic.twitter.com/P7J06i1K12
— Keean Bexte 🇳🇱 (@TheRealKeean) August 6, 2022
The Bottom Line
Argentina is rapidly cycling through new economic ministers and demanding they produce a miracle. Though halting spending at this time is not going to be some sudden cure.
The country is addicted to a heavy spending cycle that’s going to be extremely hard to put the brakes on.
America needs to take caution and look at Argentina’s example because this is directly where leftist lies and excess lead to.
This article appeared in StatesmanPost and has been published here with permission.