An opinion columnist for the American newspaper The New York Times reported that President Barack Obama should follow the steps of the model applied in Argentina in the last decade.
As expressed in his article Ian Mount, from which Argentina fell into default in 2001 "made a U-turn in its economy, an achievement that went unnoticed outside of Latin America, but that President Obama and Congress should be an inspiration" .
Mount listed among the "financial records" recent "growth of 6 percent annually for seven of the last eight years, unemployment fell to less than 8 percent today versus 20 who had in 2002 and poverty declined to half. " In part, the author noted that due to a rise in domestic consumption.
"The streets of Buenos Aires are crowded with cars because Argentines bought about 800 000 new vehicles this year." Mecca of wine ', Mendoza, is full of wineries, hotels and restaurants offering first class. Plasmas and (cellular) Blackberry became household tools of the middle class, "Mount cited as an example.
The detailed growth by the author was in part due to "a windfall for the rising prices of soybeans, corn and wheat," but also by decisions from the Executive, as the price control dollar to remain high and the application of export taxes.
These measures were the funds that allowed for the construction of public housing and welfare benefits, such as universal child allowance, which "helps to encourage consumption," as understood by the author. "As the child depends on going to school, ensure a better level of long-term education nationally," he summarized.
However, weaknesses are obvious: "Taxes on imports and exports spooked foreign investors, while the high consumption inflation soared to 20 percent," said Mount.
The New York Times reporter suggested to copy the Argentine model Obama: "Put money into the pockets of citizens, who then spend and contribute to economic recovery," he asked.
"The cut in public spending should be done when things get better, something that Argentina is struggling now, but not before," said Mount, who said in another passage in his article that "it would be ludicrous to suggest that the United States follow in his footsteps and enter the default ".