What the dismal science can achieve if left to get on with it

SMALL update/news flash. You may or may not know that Glasgow has ALWAYS had the worst life expectancy for men. 

And you may recall I mention how deprived the once bustling town of Blackpool had become. 

Well, in a twist of fate Glasgow has lost its dubious crown and has passed it to Blackpool.

Now I know you think I’m a bore about economics and how it can set us free, but as ever, the proof is in the pudding.

My favourite world leader - Javier Milei of Argentina - has been in power for about a year. In that time he has achieved:

• Reduction in inflation to 2.7%. It was over 130% last year and that included early steps down when Milei took over.
• A 170% increase in rental supply and a 40% drop in real rental costs. He scrapped price controls and let the market decide. And guess what? More housing available at cheaper prices and an on-going boom in house building. NB UK politicians.
• The first budget surplus since 2008. Dream-on UK.
• Government spending 30% lower in real terms. That’s real terms so a massive drop.
• Country default risk fallen by 40%. From CCC- to, in some cases, B.
• A reduction in the number of ministries from 18 to eight. The one I liked best was the abolition of the taxation ministry – HMRC by another name. Of course, he set up another, but at a cost of more than $250 million per annum less.
• A reduction in the black-market premium from over 100% to 25%. Makes it worthwhile to keep your cash in the country.
• 30,000 government officials sacked.
• New foreign direct investment from relaxation of trade laws in July.
• Recovering living standards.

He gave an interview to the Economist in which, amongst other things, he said: “My contempt for the state is infinite.”

As well it might be. Remember Argentina (the name comes from the Latin for Silver) was among the top five wealthiest countries in the world from about 1880 into the 1930s. 

Since then, sadly, successive governments have sought to extract more from its population than was either necessary or sensible. As I’ve recently argued we in the West are fast approaching – if we have not already surpassed – the limits of taxation.

Milei at a stroke has done away with state intervention and reduced the Argentine state to sensible levels. Interest rates are still too high at 35% but compared to what they were this is but a flea bite

Definitely a case of don’t cry for Argentina. It – and Milei – are doing great. 

And the dismal science? Not if handled properly and left alone to get on with it.

Just think what he could have done with Blackpool

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