The Miami Herald's Latin America specialist, Andres Oppenheimer, writes about the upcoming election in Argentina. What this article explains is the underlying rationale for how the economy of Argentina does such a poor job.
Essentially Oppenheimer compares the Peronism of Argentina with the market capitalism of neighboring Chile. Argentina has too few workers in the private sector or self-employed for their taxes to be able to support the many government workers, retirees, and dependents. Hence, it spends more than it takes in and is effectively bankrupt.
President Macri, who seeks reelection, at least understands this problem, if he hasn't moved as quickly to solve it as many might desire. His chief opponent promises to bring back the hyper inflationary deficit spending of the Kirschner/Fernandez era ... basically latter-day Peronism.
If Macri isn't reelected, Oppenheimer believes it will be proof of magical thinking on the part of Argentinian voters. I agree.
