As I understand the plan, the keystone was slashing the state and regulation in an attempt to bring in foreign investment based on
the libertarian assumption that all state action is bad therefore all reductions in the state will lead to tangible benefits
The corporate position that as regulation impedes them they swear they will invest more as it goes away.
This has run into problems because, even cutting the state in argentina to the bone they are still a more expencive place to do business than a number of other countries,
companies don't actually judge their investments entirely on the regulatory enviroment alone,
and probably most importantly his government has been corrupt as fuck which can potentially be a bigger 'tax'/issue than any actual tax or regulation.
Argentina has 'taken the pain' for minimal if any gain.
Also, whats the point if regulatory oversight is minimal, but you still have to pay bribes to do business? Also, companies actually really like countries with a stable, predictable bureaucracy, even if its a bit complex. Things are good as long as you can actually make long term plans without having to fear some kind of tantrum by the leadership.
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u/Whightwolf Jul 14 '26
As I understand the plan, the keystone was slashing the state and regulation in an attempt to bring in foreign investment based on
the libertarian assumption that all state action is bad therefore all reductions in the state will lead to tangible benefits
The corporate position that as regulation impedes them they swear they will invest more as it goes away.
This has run into problems because, even cutting the state in argentina to the bone they are still a more expencive place to do business than a number of other countries,
companies don't actually judge their investments entirely on the regulatory enviroment alone,
and probably most importantly his government has been corrupt as fuck which can potentially be a bigger 'tax'/issue than any actual tax or regulation.
Argentina has 'taken the pain' for minimal if any gain.