Caputo Defends Economic Model: 'For All the Morons Who Talk About Industry'

Argentine Economy Minister Luis Caputo has vigorously defended the government's economic program, pushing back against criticism regarding crises in certain economic sectors. Caputo asserted that the growth driven by the energy, mining, agriculture, and knowledge industries is fundamental, as these sectors generate the U.S. dollars necessary for macroeconomic stability. He believes that the success of these key areas will eventually benefit the broader economy.

“

The growth of four sectors is fundamental because they are the generators of dollars that ensure macroeconomic stability. When these sectors do well, it helps the other sectors, it does not harm them.

"The growth of four sectors is fundamental because they are the generators of dollars that ensure macroeconomic stability. When these sectors do well, it helps the other sectors, it does not harm them," Caputo stated during an event organized by the Chamber of Stockbrokers. He emphasized that investments approved under the "Regime for Incentives for Large Investments" in agriculture and mining alone will significantly increase the flow of dollars into the country. This, he argued, is crucial for an economy that previously suffered from a lack of confidence in dollar availability.

Caputo also addressed concerns that the current trade liberalization policy is detrimental to domestic industry. He pointed out that industry experienced a 10% decline during previous administrations, even with substantial subsidies for energy and other costs. "The fall occurred despite being subsidized in tariffs and subsidized by all Argentines... Because all the fools like us paid things two, three, four, five, 10 times what they were worth," he said, criticizing past protectionist policies that he claims led to inflated prices and inefficiencies.

“

For all the morons who talk about industry. The fall occurred despite being subsidized in tariffs and subsidized by all Argentines. Because all the fools like us paid things two, three, four, five, 10 times what they were worth.

Furthermore, Caputo commented on the current exchange rate, noting that the real value of the dollar is at its lowest level since 2017. He reiterated that competitiveness is not solely dependent on devaluation but rather on reducing taxes, deregulating markets, lowering financial costs, and decreasing country risk. He contrasted the current financing costs for projects like those in Vaca Muerta, which are at 7% annual interest in dollars, with the hypothetical 14% rate under the previous government, suggesting that current conditions make investments more viable.

“

If competitiveness depended on devaluation, we would be the most competitive economy in the galaxy.