Re: Wealth Distribution

From: Mike Lorrey (
Date: Thu Jul 26 2001 - 07:47:03 MDT

Carlos Gonzalia wrote:
> >Tax havens become attractive when local taxation is seen as overly
> >punitive.
> Of course it is punitive. And it is going to get worse. The government
> is aiming for a zero-deficit policy from now on, which means anything
> that tax collections don't suffice to pay, will not be paid. I expect
> a lot of pressure will be put on bussinesses to come up with money
> to avoid a closure of state services, particularly in education and health.
> There is already discussions on parliament on very harsh laws to punish
> tax evasion and such.

THe problem with this, of course, is that it chases money out of the
country, leading to less economic growth and therefore a drop in the
incomes of the poorest, thus increasing demand for social services and a
greater need for ever more tax revinues. Vicious cycle that, usually
'fixed' by stupid governments by printing more money, leading to
hyperinflation. Oh, yeah, you guys already did that...

> >From: Alejandro Dubrovsky <>
> >
> >Have you got any pointers to data stating that the poor got poorer during the
> >Menem era?
> Same caveat as before applies, I guess. The only electronically available
> material I can point to is Tedesco's paper: 'La nata contra el vidrio: urban
> violence and democratic governability in Argentina', Bulletin of Latin
> American Research 19 (2000), 527-545, Elsevier Science Ltd. She cites
> figures from INDEC's statistics (which are not electronically available,
> as is the case with most studies on socioeconomic change, what a pain).
> She also cites some working papers from UNICEF and private studies,
> again nothing electronically available.

One thing I've found when the data is not available on the web: there is
something wrong with it that doesn't support the claims of the agenda
driven. Australian and British sources do this with crime data all the
time, because their actual data supports the arguments of gun rights
advocates, which is abhorrent to the agenda of the Brit and Aussie

> I just stumbled across CEPAL's documents on the web. They seem to indicate
> that during Menem's first administration poverty reduced a good deal, but
> at the end of his second administration poverty levels seem to be the
> same as before his rise to government. Intresting, I think, and something
> I wasn't much aware of (though I recall people saying something like that
> was happening). The link to the 'Panorama Social de America Latina' is:
> (I'm afraid it seems to be only in Spanish, sorry).
> There is also a very nice CEPAL publication with Argentina's general economy
> indicators, showing the development of the last 10 years. Again, I'm no
> expert, but a good amount of the figures look quite appalling to me.
> (again, it is in Spanish, sorry!)

I'd appreciate any translation of the data.
> -Carlos

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