Argentina’s 20th Century Descent from Riches to Depression is a warning for 21st Century America.
This 2015 video highlights how government strategies destroyed Argentina and its institutions.
Mandatory universal health and pension insurance, and affordable housing, were funded by wage taxes.
Overly generous benefit outlays outstripped the funding for such programs, leading to their insolvency.
Increasing government bureaucracies and the promoting of labor unions shifted workers from agriculture.
Demonization of the wealthy and landowners and growing regulation reduced capital investment.
Increased government economic control diminished free markets and lead to shortages and food riots.
Deficit financing and printed money brought inflation which peaked at 3,000%.
Wealth taxes, 28% payroll taxes and a Value Added Tax couldn’t prevent collapse of the pension systems.
Eventually, government obligations were all converted to defaulted government bonds.
Our US Social Security and Medicare Trust Funds consist of unsecured by US Government Bonds.
As our government is insolvent (in deficit), so too are the bonds in those trust funds.
The trends and events from 20th Century in Argentina are with us today and accelerating.
Posted by GST Chairman Ray Chadwick.