Why ignore history of financial miscues?

History has been recorded between the pages of books for eons, perhaps so that future generations might not repeat similar problems of the past. However, past historical facts do not seem to be a matter of concern for far too many present day political figures as they try to spend our country out of a faltering economy.

Lavish government spending proved to be financial Waterloos for several of our South American neighbors. Uruguay was once referred to as the Switzerland of the Americas, given the many benefits that were once hitherto unheard of elsewhere. Argentina was once neck to neck industrially with our country. It was blessed with fertile soil, abundant grazing lands that included many water ways. Early European immigrants came to settle down on a piece of their own land and the country soon became a major world exporter of beef.

This cash flow set off a building boom, rapid industrialization, job creation and in turn a healthy bountiful government treasury. This healthy state of affairs led to many government programs to better the lives of Argentines. Cheap medical care, affordable housing and many worker’s benefits became commonplace.

But more and more governmental generosity became problematic, and by the end of dictator Peron’s rule, more money was going out of the state coffers faster than it was coming in, causing class warfare pitting one class against the other and finally a resulting devaluation of their currency.

The monetary wisdom of several past historical figures had been brushed aside. Ben Franklin had warned us that “You cannot have prosperity without economy “ and the late Winston Churchill reminded us that “Any country that believes it can spend itself into prosperity, is like a man standing in a bucket trying to pull himself up by the handle.”

Walter Santi

Bloomingdale