Argentina: the government of Alberto Fernández launches parapolice groups to control prices
Argentine President Alberto Fernández openly contradicted his historical statements about controlling prices, and delegated the tasks to parapolice groups commanded by the Truckers union.
Without satisfactory results after three months in office, Economy Minister Sergio Massa redoubled the bet and once again the Kirchner government bets on price controls as a tool to control inflation, something that they will never achieve without controlling monetary aggregates.
Looking for personnel who can fulfill the arduous task of going business by business to intimidate businessmen to lower prices, Minister Massa and President Alberto Fernández empowered the Truckers Union to supervise and control companies subject to the “Fair Prices” program.
In this way, leaders of social organizations and trade unionists acquired powers that are typical of the security forces, for which reason they became true parapolice groups.
Numerous criminal lawyers warn that the Government’s measures are not legal, since surveillance and control tasks cannot be entrusted to private groups.
The example is already quite exhausted, but in Nazi Germany, after a decree of Chancellor Adolf Hitler in May 1934, price increases were prohibited.
Immediately, the SS, parapolice forces that at that time were nothing more than Hitler’s private guard, often interceding violently in party and union discussions, were empowered by the then minister Kurt Schmitt to do the same in businesses throughout the country.
Alberto Fernández himself, a few years ago, denounced the “patotas” that were sent to control prices, and correctly pointed out that prices could only be lowered from the Central Bank.
The then opponent of Kirchnerism spoke in TN and pointed directly against Cristina Kirchner for sending shock groups to squeeze businessmen: “They solve it by sending the militants of La Cámpora to the shops to control prices.”
Fernández seems to have completely forgotten his statements and today, as a consecrated Kirchnerist, and believing that inflation is the fault of the citizens and not of his government’s economic policy, he sends trade unionists to do what La Cámpora did in the previous government.
But despite numerous checks, retail price inflation continues unabated.
The INDEC marked a monthly increase of 5.1% at the end of December 2022, and a rise of 6.15% was averaged in the July-December period.
The rate of increase in prices is comfortably higher than in the first half of last year, and higher than the average inherited from the previous government in 2019.
Year-on-year inflation reached 94.8% in 2022 according to the report announced by INDEC, the highest since October 1991.
The Argentine economy continues to be among the most inflationary in the world, along with countries such as Cuba, Zimbabwe, Turkey, Sudan and Venezuela.
Price and wage controls have failed inevitably in Argentine history, without any exception, in each of the different episodes in which they were implemented.
They found failure during the five-year plans of Perón, the Onganía government, the Gelbard Plan, the military mandates, the Alfonsín government, the Kirchnerist governments, and the Macri administration.
The only recent experience of price stability in the country occurred without any regulation on businesses, during the Free Convertibility regime and the Government of Carlos Saúl Menem.
With information from La Derecha Diario
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