We don’t want to sound like alarmists, but the story above doesn’t have a happy ending if a course correction doesn’t happen soon.
Three charts summarizing the collapse of the Argentine economy under its leftist government should be worrisome for the United States.
First, government spending in Argentina has soared from 21.8% of GDP in 2002 to a shocking 42.1% of GDP in 2020
Second, the currency in Argentina is in tragic collapse. It now takes 350 Argentine pesos to purchase a U.S. dollar. Ten years ago the exchange rate was 4 pesos for one dollar. The currency has lost 98% of its value. In 2021 alone the inflation rate rose more than 100% – meaning prices doubled.
Argentina was once one of the richest nations in the world and now it is on track to become one of the poorest thanks to Peron-socialism – which has been a failure for half a century and is now the game plan of leftist president Alberto Hernandez.