Barack Obama and Juan Peron: Same Playbook, Same Results?

I’ve make this connection before, too, but here’s something of note:

His (Obama’s) policies even have the potential to consign the US to a similar fate as Argentina, which suffered a painful and humiliating slide from first to Third World status last century, the paper says.

There are “troubling similarities” between the US President’s actions since taking office and those which in the 1930s sent the US and much of the world spiralling into the worst economic collapse in recorded history, says the new pamphlet, published by the Institute of Economic Affairs.

In particular, the authors, economists Charles Rowley of George Mason University and Nathanael Smith of the Locke Institute, claim that the White House’s plans to pour hundreds of billions of dollars of cash into the economy will undermine it in the long run. They say that by employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years…

Although the authors support the Federal Reserve’s moves to slash interest rates to just above zero and embark on quantitative easing, pumping cash directly into the system, they warn that greater intervention could set the US back further. Rowley says: “It is also not impossible that the US will experience the kind of economic collapse from first to Third World status experienced by Argentina under the national-socialist governance of Juan Peron.”

2 Replies to “Barack Obama and Juan Peron: Same Playbook, Same Results?”

  1. Argentina lost its European markets after World War II because the Marshall Plan cut it out – the US easily replaced Argentina in that trade. This “blame Peron” meme that is one of those articles of faith out there to draw the usual convenient lessons and is omnipresent. I checked the blogs for some of this stuff and this is the fourth one so far…

    Argentina’s real problem was one that Peron tried to solve – too much dependence on exports, not enough on the internal market. World War II and its aftermath was disasterous. Argentina’s economy was too distorted as an aftermath of the colonial system. The whole “Argentina was a first world country in a golden age brought down by labour unions and socialism” does not stand up to close scrutiny but as with any propaganda it exists as propaganda in order to pursue the usual class war objectives.

    Deficit mania by the way is the most dangerous threat to the United States. If it fails to carry out another round of stimulus because of this mania there will be a permanently lower standard of living, permanently high unemployment and permanently lower wages.

    1. By the time Peron came to power, Argentina had been out from under Spanish (colonial rule) for more than a century. There comes a time in every nation’s history when one can expect it to get past its colonial “burdens” and Argentina (along with Chile) were both in the best position to accomplish this. So blaming colonialism for this disaster is a stretch.

      As far as deficit spending in the U.S. is concerned, the country cannot afford it for two reasons.

      The first is that the current regime has no concept or desire on how to build a truly productive economy. This is necessary to service the debt we are running up. This problem goes back to the basic nature of the American left and its “baptism of fire” in the 1960’s and beyond.

      The second is that the end of dollar hegemony will make it far more difficult to pay off any debt because it will be “real” and not merely in our own currency. Your scenario of “a permanently lower standard of living, permanently high unemployment and permanently lower wages” is inevitable. The left will make the most of it, especially with the first (that’s one way to cut down greenhouse gases!)

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