The Argentine government has now passed an important milestone on the way to failure and collapse, one passed by many of its predecessors: the president’s popularity in opinion polls is now lower than the rate of inflation. The FT reports on a steep rise in meat prices amidst the country’s general inflation. More:
The fears of carnivorous Argentines are shared by the government of President Cristina Férnandez de Kirchner, which demanded last month that beef be sold at “accessible” prices amid concern that a 30 per cent jump in beef prices since November is leading to a drop in consumption. Economists predict that Argentina will slip into recession this year […]Suffering from a sharp drop in support, from 42 per cent in December to just 25 per cent now, in large part because of economic problems, Ms Fernández is attempting to impose price controls introduced at the start of the year on almost 200 supermarket items, with threats of fines or closure for offending stores.
Under the circumstances, Kirchner’s political authority is likely to continue to hemorrhage away even as economic conditions deteriorate. It’s an old cycle in Argentina, and one can be sure that, as usual, the rich have seen it coming and moved their money into safe havens. The poor and the middle class will be stuck with the bill for yet another bout of delusional populism.But there’s another point here: greens will be happy with these policies, however much havoc they wreak on the Argentinian economy. Idiotic agricultural policies have slashed the size of Argentina’s cattle herd, cutting significantly into the amount of greenhouse gasses released from cow intestines. As Argentina’s farmers switch from cows to soybeans in order to escape clumsy government price and export controls on beef, Malthusians everywhere can applaud.