It used to be the richest country in South America, but now the country is extremely poor, and it is

Mondo International Updated on 2024-02-01

Argentina, a large country located in South America, is second only to Brazil in terms of population and economy. However, if we talk about the superiority of the natural environment, I am afraid that even Brazil will not be able to compete with it.

Argentina is located in a pleasant zone zone, while most of Brazil is a tropical rainforest that is difficult for humans to survive. Like Brazil, Argentina is rich in minerals, and it is also blessed with vast pampas and fertile farmland, making it one of the world's most important producers of agricultural products.

At the beginning of the last century, Argentina adopted an active industrialization policy and ushered in an era of prosperity. By 1913, Argentina's per capita income had surpassed that of France and Germany, making it the most desirable destination for Europeans, as was the United States.

At that time, many Europeans with dreams of happiness came to Argentina, bringing technology and capital to make Argentina more prosperous. At that time, Argentina was a symbol of wealth for Europeans, and to describe a person as rich, they often said, "You really look like an Argentine." ”

During World War II, although Argentina did not participate directly in the war, it gained a great deal of war wealth through the export of beef. At the same time, as a result of the war in Europe, Argentine industry had no competitors and entered a period of prosperity.

From 1945 to 1949, Argentina's economy grew at an average annual rate of 6 percent, and industrial output rose by 25 percent. How strong was Argentina at that time?

They are even able to create large warships of the cruiser class on their own, launch satellites, make large aircraft. In this case, the exchange rate of the Argentine peso against the US dollar reached 1:1.

At that time, Argentina enjoyed high benefits and lived a very comfortable life.

With the rise of the Argentine economy, the people's pursuit of quality of life is also increasing. They believe that the tax is too high and the exploitation of enterprises is too heavy, so they start a campaign to demand a reduction in the tax burden.

In order to win votes, ** constantly caters to the will of the people, imposing high welfare policies and strict labor laws. However, this policy model requires a lot of tax support, and many companies are under double pressure and even forced to go bankrupt.

Later, the famous Argentine ** Perón came to power, and he catered to the will of the people even more, vigorously promoted the policy of deindustrialization, claiming to develop the tertiary industry, reduce exploitation, and let people return to nature.

At the same time, he also borrowed heavily and spent early to maintain a false high-welfare life.

Argentina's industrialization was undermined by the populism of politicians, leading the country into crisis. Beef** is at the mercy of other countries, while Argentina lacks industrial support, an economic crisis erupts, and decades of development gains are wiped out.

From developed to developing countries, Argentina's lessons are profound. The country cannot be swayed by public opinion, let alone abandon its martial arts and deindustrialize. Otherwise, like Argentina, it will fall into crisis and the country's development gains will be ruined.

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