2023-12-25 12:33:09
These days there is a lot of talk about the negative influence that regulation can exert on the economy of some countries after the historic measures of the DNU announced by Milei for Argentina, repealing dozens of laws and modifying many others, up to more than 300 All of this, in an attempt to undo the regulatory skein that has been oppressing economic freedom and curtailing the growth of a country with extraordinary resources kidnapped by regulation, corruption and revolving doors.
These measures begin to question something that, for many politicians, is a dogma, the progressive intervention of States and supranational entities in the economy, in many cases, tortuously justified as a mechanism to end negative externalities that supposedly exist in some sectors and which, according to its defenders, translate into inequality, impoverishment and job insecurity. All that is labeled as social justice but, in many cases, it is neither fair nor social because it curtails the economy’s potential to give privileges to a minority.
The regulation of the economy is like cholesterol in the blood, which, being a necessary and beneficial substance in moderate doses, there is good and bad, but its excess encourages the accumulation of fat deposits that generate serious health risks. In the economy, the same thing occurs, the intervention of the State as an arbiter of society may be desirable to the extent that it seeks to create the appropriate breeding ground for economic activity to develop freely and for companies to compete in the markets by improving the services and prices offered to consumers. But when this supervision is biased by ideological components, the referee begins to call fouls and penalties to one of the teams, forcing the desired result, for some, but not the most fair, which leads to the progressive abandonment of the players from the field of play. and destroys the show.
If Argentina were one of the main world powers, the beneficial power of excessive state intervention in the economy would be demonstrated, but being quite the opposite, it is empirically and irrefutably evident that the State generates more inefficiencies and impoverishment when it intervenes while private property and market freedom are the pillars of economic growth and the wealth of citizens.
Saving the distance with Argentina, in Europe we are experiencing a regulatory hypertrophy that entails systematic and structural interventionism in the economy of the member countries with the progressive expropriation of freedoms from citizens and companies, which generates an elephantine and voracious structure of the State. that thrives on higher taxes and prohibitions. They want to prohibit us from moving through the city centers, eating meat, opening businesses on holidays, not leaving the cities within 15 minutes, the end of cash, and endless nonsense, to which we do not see the public benefit but rather interests. spurious disguised as false protection against an imaginary risk.
We will end with laws like the gondola law in Argentina, which, for the sake of diversity, have destroyed the main marketing techniques of proven effectiveness, limiting the ability of merchants to make their own decisions, reducing profits and forgetting the wishes of citizens who are the ones who form the demand of the market and of the merchants themselves who have seen their margins reduced.
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