Australia on the Argentina Road, By James Reed

Nation First has an informative discussion of how Argentina was once a highly prosperous nation, but because of socialism, fell into the standard Third World situation, although now after long decades, it is lifting itself out of the economic mud in which it was sinking.

Argentina capitalised on its abundant fertile land to cultivate valuable soft commodities. This strategic advantage attracted substantial foreign investment, fuelling economic growth and increasing the nation's gold reserves to an impressive $116.70 million—3.7% of the international supply—while contributing 1.2% to global economic output. Argentina thrived on this economic model, establishing itself as a formidable player in the global market.

However, this prosperity was not built to last. The Great Depression struck with a devastating force, dismantling the very foundations of Argentina's economy. As global demand plummeted, the nation's reliance on exports rendered it particularly vulnerable. Economic turmoil quickly spiraled into political instability as the Argentine people sought explanations for their country's rapid decline. It was in this climate of desperation that Juan Perón emerged as a populist leader, promising solutions to Argentina's woes. His rise to power in 1946 marked the beginning of a new era, one dominated by nationalization and labor reforms that, though initially appealing, ultimately deepened the nation's economic struggles.

Decades of populist governance ensued, perpetuating cycles of economic mismanagement that left Argentina in a state of perpetual decline. The country's once-flourishing economy was now a shadow of its former self, a cautionary tale of how short-sighted policies and economic interventionism could erode a nation's prosperity.

For those observing from afar, such a downfall might seem like a distant misfortune—one unlikely to befall a developed nation like Australia. After all, Australia has long enjoyed stability, economic resilience, and the benefits of a well-structured political system. However, beneath this veneer of prosperity, cracks are forming, echoing the early signs of Argentina's decline.

Australia's descent is not marked by a single catastrophic event but rather by a series of policy missteps and economic inefficiencies that have eroded national productivity. The country's immigration policies, for instance, have come under scrutiny. In the past year alone, Australia admitted 737,000 migrants, of whom only 13% entered through the skilled migration program. The remainder arrived on family, student, or temporary working visas. This surge has contributed to declining real wages, soaring housing costs, and a per capita income decline. Meanwhile, Australia's federal infrastructure bill has ballooned beyond $60 billion AUD, placing additional strain on public resources.

The cost of these policies is not borne by the migrants themselves, who often lack the financial means to contribute significantly to the tax base. Instead, it is the Australian people who foot the bill, subsidizing a system that appears to prioritize corporate interests over national well-being. Mass migration, often touted as an economic boon, has shown little evidence of delivering net long-term benefits. Rather, it has fostered a system in which large corporations exploit cheap labor while property lobbies benefit from inflated housing prices.

Beyond immigration, Australia's economic strategy mirrors Argentina's missteps in resource management. While Argentina squandered its resources through relentless nationalization, Australia is effectively giving them away at cut-rate prices. The nation's wealth in natural resources, including iron ore and coking coal, is being sold in raw form rather than refined into high-value goods such as steel, which commands a substantial premium. This failure to capitalize on value-added industries has resulted in Australia's rank plummeting to 102nd on the Harvard Atlas for Economic Complexity. The illusion of economic strength, buoyed by high GDP figures, masks a deeper reality: the nation is failing to diversify and enhance its economic foundation.

Compounding these challenges is an expanding public sector that drains national productivity. According to the Australian Bureau of Statistics, 2,517,900 people were employed in the public sector in the 2024 fiscal year, costing taxpayers $232.2 billion. Such an oversized bureaucracy, rather than driving efficiency, has contributed to a decline in national productivity. The rationale for an ever-growing government in the face of a sustained per capita recession remains unclear, yet the inefficiencies persist, funded by taxpayer dollars.

Meanwhile, Argentina, once the poster child for economic mismanagement, has begun to turn a corner. The election of President Javier Milei in 2023 marked a significant shift in economic policy. In a remarkable turnaround, Argentina has achieved its first national fiscal surplus in 123 years, with inflation hitting a four-year low. This newfound stability has not gone unnoticed, as evidenced by the country's nine-point rise on the Edelman Trust Index—a testament to growing confidence in governance and economic direction.

Conversely, Australia has slipped further, dropping two points to 48 on the same index, reinforcing its status as a low-trust nation. The trajectory is clear: without decisive action, Australia risks following Argentina's historical path of decline. However, just as Argentina has begun to chart a new course, so too can Australia. The nation must reject complacency and demand accountability from its leaders. The time for mediocrity has passed; Australians must advocate for policies that foster sustainable economic growth, national productivity, and the preservation of sovereign interests. Only through such decisive action can Australia avoid becoming the next Argentina—not of the past, but of its most challenging years.

https://nationfirst.substack.com/p/australia-is-the-next-argentina\

Argentina utilised its abundance of fertile land to develop valuable soft commodities and quickly became a sponge for foreign investment and capital inflows. This success culminated in the South American nation having a gold stock of $116.70 million - 3.7% of international supply - whilst constituting 1.2% of global economic output.

That all came crumbling down in the wake of the Great Depression, which hit Argentina particularly hard given the nature of its export basket at the time.

Economic turbulence quickly led to political turmoil as its citizens demanded answers to their country's capricious decline, and far-left populist dictator Juan Peron provided the solutions with his rise to power in 1946.

Since then, Argentina has been continually ravaged by populist regimes conducive to the nationalisation of industries and labor reforms that ultimately led to an even further stark decline.

We in Australia probably laugh at such predicaments that occur far away from the seemingly pristine safety of the Antipodes. A fate like that which met Argentina's demise is unthinkable for a sophisticated nation like Australia. Wrong.

21st Century Australia is entering a decline of its own. Our seemingly benign and sensible politicians will never admit it, but we have become a corruption-ridden crony-capitalist project hellbent on punishing the truly productive and giving handouts to the lazy.

Just look at immigration.

Last year, we brought in 737,000 migrants into this country, with only 13% coming through the "skilled" migration program. The rest came on family visas, student visas, or temporary working visas.

Since then, real wages have plummeted back to 2009 levels, house prices and rentals have gone through the roof, and per capita income has fallen through the floor. Not to mention our federal infrastructure bill has now reached an excess of $60 billion AUD.

Who do you think pays for this?

It can't be migrants themselves. International students, the dependents of visa holders, and temporary workers don't have enough money, nor are they earning enough income to meaningfully contribute to the tax base.

Of course, as usual, we, the Australian people, are expected to subsidise the lifestyles of foreign newcomers into this country for no good reason other than to provide cheap labour for big business, and to prop up house prices for the property lobbies.

There is no bona fide evidence that mass migration is a net positive for the Australian economy even in the long run. This is clandestine socialism through which we are working and paying to provide for the unproductive and in many cases unemployed quite frankly.

Like Argentina, Australia is wasting its natural resources to make a quick buck for large multinational corporations at odds with the interests of everyday punters.

Argentina spent decades wasting its resources through incessant nationalisation. Australia is wasting them by giving them away at a discount!

The wool is pulled over our eyes because of our high GDP, but the truth is our GDP just simply isn't high enough, given that we now rank 102nd on the Harvard Atlas for Economic Complexity.

This is because we sell our finite natural resources, such as iron ore and coking coal, as raw unfinished products instead of adding value by turning them into higher-end goods like steel with massive premiums.

Again, this isn't a function of the will of the Australian people. It is a function of the will of the global, transnational corporatocracy, which aims to plunder our resource-based endowments through the steady erosion of our sovereignty.

This is dovetailed and enabled by a massively enlarged public sector responsible for god knows what. Why do we need a larger government if our economic complexity is declining in line with a sustained per capita recession, you might ask?

Well, because other people's money is easier to spend than your own, of course.

According to the Australian Bureau of Statistics (ABS), 2,517,900 people were employed in the public sector in FY 24, costing taxpayers $232.2 billion.

This is completely untenable given that it has been proven time and time again that more government jobs are fuelling a chronic national productivity decline.

Well, the Argentinians chose their answer with the election of President Javier Milei in 2023, and it's fair to say things are improving.

Inflation just hit a four year low in Argentina to complement the end of a national fiscal deficit for the first time in 123 years. Simply astonishing.

As a result, Argentina rose 9 points on the Edelman Trust Index, a widely accepted barometer of the level of trust a nation's citizens have bestowed on its governments, NGOs, and large corporations.

Australia, on the other hand, declined 2 points down to 48, cementing our status on the index as a very low-trust nation.

Enough is enough. If Australia is to go the way of Argentina it must be its way as of recently. As a population, its people must utterly reject any more mediocrity from its politicians and demand an end to what one can only call a horrible experiment gone wrong."