• FuckyWucky [none/use name]
    hexbear
    65
    6 months ago

    The previous leftist government had used complicated currency controls, consumer subsidies and other measures to inflate the peso’s official value and keep several key prices artificially low, including for gas, transportation and electricity.

    Yea devaluing peso from 360 for a dollar to 790 for a dollar instantly meanwhile is such a big brain play.

    there is no such thing as a 'natural' price. every price is artificial. OPEC is literally a cartel ffs. The concept of 'artificial' pricing is so libertarian brained.

    • @driving_crooner@lemmy.eco.br
      hexbear
      31
      6 months ago

      A Mileista friend of mine keep complaining about 140% of inflation a year for the past government, but now that yhey had like 300% in a week suddenly is ok and is just the true price of everything. Of course he dosen't live in Argentina and dosen't has his salary cut by a third in a week so it's ok.

    • @WetBeardHairs@lemmy.ml
      hexbear
      16
      6 months ago

      I think in his bigbrain libertarian mind, the money market pricing of the peso to usd is what defined the value previously and he decided that the market's pricing is not correct for that of the Argentinian currency.

      By devaluing the currency, it makes Argentinian labor and goods comparatively cheaper on the international market. This is a similar move to how China grew at such a tremendous rate in the 90's - they intentionally devalued their currency in order to use foreign investment in their relatively cheap labor pool to fund the creation of their manufacturing industries.

      That solution probably won't work here, though. Corporations are scared of investing in countries with unstable political leadership that performs brash actions like his. (Libertarian economics cannot account for such beliefs though since everyone must be a perfectly rational actor that chooses price above all). They are afraid that he may unilaterally nationalize certain industries and claim all assets for the state. Or he may rugpull outside investments and say that all profits must go to the state for some amount of time. Whatever flavor of stupid chainsaw wielding antics he comes up with one day is what they will see and use as a justifiable rationalization for not investing in the devalued market of Argentina.

      • FuckyWucky [none/use name]
        hexbear
        14
        6 months ago

        also China was handpicked by the American capitalists to be the manufacturing hub (cheap currency was a cherry on top). Countries recently forced to devalue currencies haven't had a similar manufacturing boom especially because global economy is doing kinda shit.

        • huf [he/him]
          hexbear
          13
          6 months ago

          also back then there was western industry that could be offshored to china. whose industry's gonna move to argentina now? nobody else with a significant manufacturing sector is stupid enough to do it, after watching the west shoot itself in the foot. or so one would hope...

    • @rottingleaf@lemmy.zip
      hexbear
      1
      6 months ago

      there is no such thing as a ‘natural’ price.

      Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales.

      That's how markets actually look in the wild.

      And the natural price is the mathematical expectation of the price you get by bargaining.

      It's very simple and in this particular case "mainstream" economics and libertarian economics get along pretty well.

      • FuckyWucky [none/use name]
        hexbear
        20
        edit-2
        6 months ago

        no. because the prices are influenced by external factors. i live in a country where markets like these exist and the price is not 'natural' in any way, in an idealized world maybe but not in reality.

        firstly, transporting any commodity (and inputs such as fertilizers) requires fuel and fuel prices aren't determined by such idealized markets you mentioned, its determined by what cartels and oligopolies want it to be. you are also ignoring subsides, not just by the national governments but foreign governments. for example, developed countries provide a shit ton of subsidies which pull down prices in the international markets, without restrictions and tariffs these displace local production.

        there is also the fact that food prices are very inelastic, the seller can push prices very high and the consumer will be forced to accept it because you can't live without food.

        i dont really get the middle eastern market you are mentioning because in reality there is absolutely price discrimination going on.

        • @rottingleaf@lemmy.zip
          hexbear
          1
          6 months ago

          OK. Natural prices exist as an unreachable ideal point, but there are no absolutely natural prices in real world. I agree, and, BTW, no ancap would argue with that.

          • FuckyWucky [none/use name]
            hexbear
            20
            edit-2
            6 months ago

            natural prices can only exist in an environment where every consumer and producer has all the information and is completely rational.

            if you are rich and a vegetable seller who typically charges $5 for a vegetable charges you $10 you are unlikely to bargain as you would consider it a waste of your time and energy and just buy it. is this person being rational by not wanting to waste their time or irrational because they aren't squeezing more out of the seller.

            read this too

      • Dolores [love/loves]
        hexbear
        19
        6 months ago

        Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales

        imagine citing a fantasy trope to justify economic policy jfc