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Originally Posted by Hell_bound
However, the fact that Argentina is starting to grow economically and produce corporations (if even one) like NGD, while still holding onto the core beliefs of what made Argentina a counter movement to profiteering capitalism shows that there is indeed very wise and smart people in Argentina.
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Brief comment about the economical history in Argentina*:
In 1880's we used to be the main producer (and hence, seller) of grains in the world, altogether with bovine products.
We got struck in the 80's, 90's, the 1914 and the 1929 by economical crisis and stock crashes. Argentina could never sell as much grain as before this crisis.
Then the WWII came. As you may notice, all grain producer countries depend on Europe since was (and it still is) the primary seed buyer around the world. By the time we had some industries, but they weren't enough to get by.
After the WWII ended, Argentina saw with big eyes the starving and destroyed Europe, so we wanted to sell food and lend money to help with the reconstruction of the continent. Oh, and we wanted to clean up our name, because our country held a quite good relationship with the nazi regime. So... what was the problem with this? The Marshal Plan forbid the countries to buy any product that didn't come from the USA, leaving us with a handful of countries to sell to.
When we could finally get out of the crisis, the new model that we called "sustitución de importaciones" (which can be roughly translated as replacing the industrialized or end products with the ones produced here) collapsed due to the limitations that the economical model had. Maybe Torg can explain it better, but the market got over-saturated with products. In order to keep the demand high the corporations tried to bring prices down, leaving the workers (which were at the time the consumers of the products) with less money.
Ten years passed by where the guilds vs the companies were in a tie. The economical situation of the country was "stable", but the struggling groups and the constant fight frightened a lot of investors which could have saved the country.
From now on my memory gets hazy. I should have taken down notes on the History lessons.
During the de facto governments most of the country's companies were sold to international cartels and multinational groups. To fight inflation a guy called Martinez de Hoz (that's the surename) thought it would be a good idea to use a simple recipe the International Monetary Fund gave him: "buy dollars, depreciate the national currency in favour of the dollar, repeat". This so stupid process was the final shot Argentina needed to become a third world country.
Inflationary process occur because of the ratio that products and the acquisitive power the people have. Depreciating the currency just resets the "inflationary counter" to zero, but it doesn't stop the process.
*: Maybe Torg Snowflake can help me with this, he's the expert regarding to economy, and my memory stinks.