Rise of the Argentine Empire
#243 - Cleansing out the remaining forces of Bilong
Saint Hesser was stunned for a moment, then quickly organized his thoughts and replied.
"I believe we must try from the following aspects: control the issuance of pesos, adjust the national economic structure, increase the supply of living materials, limit the prices of bulk commodities, reduce taxes, and establish a unified national taxation system, while also carrying out state-owned enterprise reforms."
Bringing out the thinking of a test-taking machine, this was just the answer to a common economics question in his previous life. Argentina's inflation was simply due to printing too much money, the root cause lies here.
"Among them, I believe the most important thing is to control the money supply. The direct cause of our country's inflation is excessive money supply. Stabilizing the value of the peso will stabilize prices. Implement a moderately tight monetary policy, control the issuance of pesos, and maintain a moderate scale of credit. The Argentine National Bank and the Ministry of Finance should use various monetary policy tools to flexibly and effectively regulate the total amount of money and credit, and control the money supply at a level commensurate with objective demand."
"At the same time, reduce taxes to increase workers' willingness to work and labor productivity, increase companies' willingness to invest, thereby driving the increase in total supply; reduce government restrictions on companies, allowing companies to better expand the supply of goods; encourage companies to adopt new technologies, update equipment, and adjust industrial structure."
"Why increase the national tax system while reducing taxes?"
Arturo keenly noticed Saint Hesser's self-contradiction.
"Argentina's current fiscal revenue has sharply decreased. The bulk of the country's income comes from customs duties, while various corporate taxes and local taxes cannot be collected. Therefore, I suggest lowering some taxes, such as individual income tax and wage tax, while establishing a unified national tax quota and concluding tax treaties with each province, transferring high-quality tax types upwards, and reforming the tax system."
Tax collection is also a long-standing problem in Argentina. Reform is impossible. Almost all provinces use most of their tax revenue for local purposes, and very little tax is distributed to the Argentine central government.
Currently, a dual tax system of federal and local levels is implemented. The federal and provincial levels each have relatively independent tax legislative power. Under the premise that provincial tax legislation does not violate the principles of federal tax legislation, provincial and municipal governments have the right to formulate their own tax laws according to the needs of the objective situation.
This is also the reason why Blanca City can use city tax revenue to establish state-owned enterprises, but the prerequisite is that you have abundant tax sources, which is a condition that many Argentine cities do not have.
But this also makes the power of the Argentine central government very weak, while the power of the president is very large, causing great conflicts.
"Another reason for inflation is the imbalance of the economic structure, so a solution to control inflation is to adjust the economic structure, maintain a certain proportion between various industrial sectors, avoid price increases caused by supply and demand imbalances of certain products such as grain and raw materials, and increase industrial production. Our country's biggest problem is that the industrial output value is too low."
"Okay, I roughly understand."
Arturo nodded casually.
The province of Buenos Aires has been plundering other provinces, and its population has been increasing significantly over the past century, with 38% of the population coming from other provinces.
The province of Buenos Aires occupies the best pastures in Argentina, but the wealth it earns has nothing to do with other Argentinians.
Regional differences are becoming increasingly large.
Does the province of Buenos Aires have the ability to lead Argentina forward? Is it necessary to maintain such a large administrative area?
The Republican Party has also become active.
Organizing strikes, these public opinions have also made many people think.
Articles directly point to the core issue: whether to develop in a balanced way, or to develop only one province. 1
Is the province of Buenos Aires becoming a "country within a country"?
Comparisons appear in newspapers one after another.
Backward remote rural areas, starving, advanced La Plata City, with forests of chimneys.
Saint Hesser's accumulated countless real interviews were also released all at once, confusing the public.
A citizen of Rosario said a sentence that made countless Argentinians think deeply, pointing the finger directly at the Justicialist Party.
"Is the Justicialist Party really as fair and just as she says? Why can't I even afford the bread and milk they promised after working hard for the past five years? Why are there more and more banknotes, and the peso is becoming less and less valuable?"
Under the promotion of interested people, the contradiction has been shifted.
Eduardo had to come forward to declare that no new banknotes would be printed within half a year. 2
......
As for Saint Hesser's purpose, whether he wants to attack the Justicialist Party or for other reasons, no one knows.
In Blanca City, he sincerely wants to improve his own small territory.
Of course, he also wants to get rid of the group of people in the Justicialist Party. This is inevitable. How can the Radical Party come to power without getting rid of the people occupying the positions?
Saint Hesser's development will soon be attacked and restricted. It's better to have chaos.
It can be seen that they want to pick the fruits, and even the La Plata Steel Plant was almost suppressed. Fortunately, the backstage is strong enough now.
Just find them something to do, they're too idle.
After all, only chaos can prevent these people from interfering with the development of Blanca City, and it is best to have a province standing behind to support him.
Political struggle is a violent struggle cloaked in civilization. It is inevitable that one side will die. The Radical Party united with the Republican Party and put pressure on the new government.
Saint Hesser inspected the La Plata Steel Plant before taking a boat back to Blanca City.
As soon as he returned, he united the provincial governments of La Pampa and Rio Negro, advocating the idea of a maritime power and dividing the stronghold of Peronists together.
Maybe they can really carve out a piece of Buenos Aires province.
And the official birth certificate of the Blanca City Free Port was approved by the Argentine Customs, and the free trade port was officially established.
The influence of the Southern Radical Party has expanded again.
Blanca City has truly become famous.
In ten days, almost 5,000 people have migrated in.
Blanca City has also become more and more lively.
Saint Hesser implemented the policy of increasing the supply of materials and lowering prices in Blanca City, and cheap rental housing made the rent level in Blanca City 1/3 to 1/2 lower than that of La Plata, with sufficient supply of materials.
The Prari fleet also opened the Blanca Port - Chile - Peru passenger route, transporting a large number of foreign populations.
So there are also many Chileans and Peruvians with different accents coming to Argentina to work.
The Prari fleet uses small passenger ships converted from 2,200-ton fishing boats, which can transport 800 people at a time. 3-5 ships depart from the two countries every month, and the Argentine Navy is responsible for picking up and escorting them in the Strait of Magellan.
These foreign workers can join various factories after 5 days of training at the Blanca City Administrative School, alleviating the labor shortage in Blanca City.
And the negotiations with the province of La Pampa were also quite smooth and received support.
Under the bewitchment and chicken soup of Saint Hesser, La Pampa also wants to have a large sea outlet and wants to develop the economy and population.
Saint Hesser described the beautiful vision of development, which is fascinating.
"We need to build a strong province of La Pampa and Rio Negro. We are brothers." 1
"The future province of La Pampa will have at least 5 to 10 million people."
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