Tuesday, April 7, 2009

Argentina's Economic Collapse

Embedded below is a powerful documentary on the economic troubles that have plagued Argentina since, well, basically forever.

There is a heavy political agenda to the film but besides that I think there are two important non-political points to be made:

1. Mass corruption, be it done by politicians, judges or private businessmen, leads to disaster
2. Mass government debt leads to disaster

The documentary rails against the privitization of Argentinian owned companies but the crux of the issue is that the companies were sold for less than they were worth, the private owners broke laws by not upholding their ends of contracts and these injustices were not held accountable by the laws of the land. That is corruption.

The private banks, the world bank and the International Monetary Fund are also demonized. While I will not defend these organizations, massive accumulation of debt is terrible policy regardless of the source. The absolute last thing a struggling nation should do is strap itself with debt.