El plan económico de Krieger Vasena. Tercera Parte: los resultados

Summary

This video discusses Adalbert Krieger's stabilization and development plan in Argentina, focusing on its initial diagnosis, objectives, and key measures. Krieger achieved a significant reduction in inflation, increased GDP growth, and reduced fiscal deficit. However, the plan led to a trade deficit, increased tax pressure, currency devaluation, and a rise in external debt. The video highlights the controversial impact on workers' purchasing power, with some arguing real wages didn't decline significantly, while others claim a reduction in workers' income share. The plan's outcome was linked to the Cordobazo protest, leading to Krieger's resignation.

Takeaways

• 📉 Krieger managed to reduce inflation significantly, achieving a notable drop from 32% in 1967 to 7.6% in 1969, despite initial modest progress.
• 📈 The plan saw an average annual growth of 5% in GDP, with some sectors like construction experiencing growth rates as high as 12%.
• 💼 Krieger's policies resulted in a reduction of the fiscal deficit, primarily through new taxes and increased retentions on the agricultural sector.
• 📉 The trade balance deteriorated, with a significant decrease in the trade surplus from $368 million in 1967 to just $36 million in 1969.
• 📈 Import growth outpaced export growth between 1966 and 1969, leading to a substantial reduction in the trade balance.
• 📊 There was an increase in tax pressure, with the state retaining more revenue from both businesses and citizens, growing from 17.3% to 21.3% within a year.
• 📚 The plan led to an increase in external debt, with Argentina contracting debt from the IMF, European banks, and the United States, signaling a warning sign.
• 🌐 There was a significant increase in foreign capital's purchasing power, leading to increased denationalization and capital concentration.
• 💼 The impact on workers' purchasing power is debated; some argue there was little real wage loss, while others suggest a decrease, particularly in public sector employees and teachers.
• 📉 Krieger's tenure ended amid the Cordobazo, a massive popular protest, leading to his resignation and the continuation of his economic policies by his successor, Pastore.

Q & A

What was the main goal of Adalbert Krieger's stabilization plan?

The main goal of Adalbert Krieger's stabilization plan was to reduce inflation, which was achieved by implementing a compensated devaluation among other measures.

How successful was Krieger's plan in reducing inflation?

The plan was successful in reducing inflation significantly. Inflation dropped from 32% in 1967 to 7.6% in 1969, although it rose again to 13.6% in 1970 after Krieger left office.

What was the average annual growth of the Gross Domestic Product (GDP) during Krieger's plan?

The GDP grew at an average annual rate of 5% during the implementation of Krieger's plan.

How did Krieger's plan affect the fiscal deficit?

Krieger's plan successfully reduced the fiscal deficit, primarily due to the creation of new taxes and updates in tax rates, as well as retentions on the agricultural sector.

What was the impact of Krieger's plan on the trade balance?

The trade balance deteriorated under Krieger's plan. The trade surplus dropped significantly from $368 million in 1967 to only $36 million in 1969.

Why did the trade balance worsen during Krieger's tenure?

The trade balance worsened because imports grew at a much faster rate (40.2%) than exports (1.2%) between 1966 and 1969.

What was the effect of Krieger's policies on the tax pressure?

The tax pressure increased from 17.3% to 21.3% within a year, indicating a significant rise in the amount of money retained by the state in taxes.

How did Krieger's plan influence the foreign debt?

The foreign debt increased significantly during Krieger's plan, with Argentina contracting debt from the IMF, European banks, the United States, and North American banks.

What was the controversy regarding the impact of Krieger's plan on workers' purchasing power?

There is a debate among economic historians about the impact on workers' purchasing power. Some argue that real wages did not significantly decrease, while others, like Mario Rapoport and Mónica Peralta Ramos, suggest that there was a reduction in real wages and an increase in income inequality.

How did Krieger's plan contribute to the process of denationalization and capital concentration?

The plan led to an increase in denationalization and capital concentration, as foreign capital took advantage of the devaluation to increase their purchasing power within Argentina, leading to the acquisition of major national firms.

What was the final outcome of Krieger's stabilization plan?

The plan had mixed results: it successfully reduced inflation and increased GDP growth without causing immediate recession, but it also led to a worsening trade balance, increased foreign debt, and controversy over the impact on workers' purchasing power. Krieger's tenure ended with the Cordobazo, a significant popular protest that led to his resignation.