Should we cry for Argentina?

Abstract

"As Argentina celebrates the bicentennial of its Revolution of 1810 and approaches the same milestone of its independence from Spain in 1816, it is a good time to refl ect on the paths of Argentine economic and political development from the colonial period to the twentyfi rst century. In light of recent turns in the American economy, the persistently dismal condition of Argentine economic life should provide a cautionary tale: Argentina’s experience vividly illustrates the power that a single political leader can exert to change the historical fortunes of an entire nation. Indeed, the career of Juan Perón shows what might have happened if Franklin Roosevelt’s statist inclinations had not been curbed by the U.S. Supreme Court in the early days of the New Deal. It is not coincidental that Argentine president Néstor Kirchner and his successor-wife, Cristina, the current leaders of Argentina’s Peronist party, idolize the New Deal. The alleged motto of FDR’s close advisor Harry Hopkins was: “Spend-Spend-Spend; Tax-Tax-Tax; Elect- Elect-Elect..."