Monday, March 31, 2008

Tax Rebellion in Argentina

Whatever I might think of La Presidenta, this WSJ columnist is of the right, so her opinions are not exactly objective. Nonetheless, facts are facts.

Violence broke out in Buenos Aires last week when demonstrators protesting food shortages and inflation were set upon by stick-wielding supporters of President Cristina Kirchner. The attackers were led by a sworn enemy of the private sector who was once an official in former President Nestor Kirchner's government. "The only thing that motivates me," Luis D'elía said, after his assault on a protestor was caught on camera and his actions were justified by Mrs. Kirchner's chief of cabinet, "is hatred against the whorish oligarchs." He then announced that he and his men would patrol the city streets to defend their view that the country's producers are immoral. National police, who answer to the president, did nothing to quell the violence.

Being a rightist hardly disqualifies her from commenting, or even being on the mark. I don't know enough to say.

Either the economy is opened, labor markets are made flexible and the business climate improves or the government clings to a weak peso policy as a way to compensate for an uncompetitive economic model and inflation comes back. Take your pick.

Either the economy is opened, labor markets are made flexible and the business climate improves or the government clings to a weak peso policy as a way to compensate for an uncompetitive economic model and inflation comes back. Take your pick. By choosing the latter, the Kirchners have won the support of that segment of the Argentine economy loyal to the principles of 20th-century fascist Juan Peron. These include labor militants, government bureaucrats, the Peronist political machine and the likes of Mr. D'elía, whose thugs act as Mrs. Kirchner's informal enforcers. But by generating inflation and provoking shortages Kirchneromics is also fueling widespread discontent.


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