I am morbidly curious about how things will go in Argentina but looking back at the track record I can only assume the worst. Though, some people seem genuinely optimistic about their new future so we’ll see. I can’t say I’m surprised at his election considering the trend in the rising far right pretty much everywhere (okay, not everywhere but in Europe and NA mostly).
In the short term, there will be massive investment into Argentina. There will be a spike in gdp, imports and exports.
However, that may not translate better living conditions for the people, as foreign investment does not necessarily mean ownership of the means of production.
Subsequently, in the long term, we will see stagnant real wages for the working class, inflation, a rising wealth gap, and eventually divestment as wages rise high enough to not be competitive, but not high enough to purchase the foreign goods that have flooded the market.
This is because they don’t own the means of production. Any innovation is not going to stay in as theirs or will be out-competed. They won’t be able to access foreign markets because their labour force is pre-occupied serving their masters rather than develop their own means of production.
I am morbidly curious about how things will go in Argentina but looking back at the track record I can only assume the worst. Though, some people seem genuinely optimistic about their new future so we’ll see. I can’t say I’m surprised at his election considering the trend in the rising far right pretty much everywhere (okay, not everywhere but in Europe and NA mostly).
In the short term, there will be massive investment into Argentina. There will be a spike in gdp, imports and exports.
However, that may not translate better living conditions for the people, as foreign investment does not necessarily mean ownership of the means of production.
Subsequently, in the long term, we will see stagnant real wages for the working class, inflation, a rising wealth gap, and eventually divestment as wages rise high enough to not be competitive, but not high enough to purchase the foreign goods that have flooded the market.
This is because they don’t own the means of production. Any innovation is not going to stay in as theirs or will be out-competed. They won’t be able to access foreign markets because their labour force is pre-occupied serving their masters rather than develop their own means of production.
The cost of exploitation is opportunity cost.