Ethical values ​​and sustainable economics

Every economy operates on a more or less transparent and shared set of values. From these values ​​emerges a norm, formal or informal, that is expressed in an action.

When someone stops their car in front of a traffic light that shows red,​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ takes into account that when someone stops their car in front of a red traffic light, they are expressing their adherence to a norm that expresses safety and order, i.e. values. Values ​​are not abstract, they are far reaching in the stratosphere of life. They are very solid, very current and solid. No economic system exists without values ​​supporting it.

Likewise, with decades of wars and disasters in our country – apart from the Covid pandemic – with perpetual fiscal deficits, we are breaking the axiom of not spending more than we have and turning our backs on value. Economical and honest management.

Yes, Argentina's fiscal deficit is a moral deficit, resulting in macroeconomic imbalances. This is followed by inflation, unsupported issuance, imposition of unjustified taxes without government compensation, unemployment, indebtedness, stagnation of GDP growth and default.

In 2008/09 there was an economic crisis in the US due to failure to conform to strict moral values. The immorality paid for by the bankruptcy of major operators, not just because of the inefficiency of banks knowingly lending money to bankrupt people and speculating on the real estate bubble. The level of pessimism is a decisive factor in the progress of any economy.

Economically in our country today, we are witnessing a paradigm shift to end scarcity and inflation, among other objectives. That's fine, economic policy has objectives that are not limited to achieving fiscal balance.

But for this goal to be sustainable, among the less important aspects that must be met, we must face something like a culture war, because as said at the beginning, all behavior refers to the ethics that build an organizational structure and it expresses values. They translate into actions. And we are failing at this.

If we end fiscal deficits and inflation, we will be left with a society that is deeply divided and broken at its core values, from top to bottom. It is a long and generational struggle. Because our economy and our society as a whole have structurally lost the necessary values.

This moral poverty has spread from the ruling class to the deepest part of our society. Of course, there are exceptions and sectors that are resistant to degradation. But as one esteemed philosopher has said, “The corruption of the best is worse.” It is well understood by those who lead the institutions of the Republic.

Therefore, beyond economic restructuring, questions arise that are admirable, necessary, but not sufficient: honesty, responsibility, respect, unity, gratitude, work culture, consciousness in the use of public resources. The value of justice, humility, empathy, security? Corruption is widespread and cuts across all social strata, from rulers to ordinary citizens.

As said, many times compliance with the law is optional in our country. Translated: Values ​​are optional, honesty is optional, corruption, theft, fraud and violence I can quickly pick out. Not to mention those who allow and engage in the drug trade, approve regulations for the benefit of a few to the detriment of the country.

Restructuring the economy is a critical, urgent and imperative need, as is a top-down reorientation of values ​​and behaviors. This is necessary to attract important, long-term investments and to rebuild confidence, a vital component of the country. But more than that, to achieve a society of harmonious, peaceful and just coexistence, even with the differences that the exercise of freedom gives us.

Without this change, beyond our borders we will be told: “These macro achievements are great, but when will the next default come?” Because until we face the values ​​that make a country great, they won't believe us.

It is true that if the economy is stabilized with the support of the majority of the population, we will reflect, almost implicitly, the set of values ​​that society has decided to adopt.

From that being said, realistically, we are talking about decades to achieve a structured and credible country.

Along this path, private initiative can integrate these typological changes and effectively fulfill its role in generating wealth, real employment and decent wages. In addition, institutions should be a school of life and a trainer of values-transmitting and upright citizens. If there is competition, profit is not a perversion, it is creativity, innovation and more employment. In this, businessmen also have to change a lot so that the society sees them as positive and essential protagonists for the life of our country.

By restoring the values ​​that come from the example of family and school, but above all from total leadership, we can move toward solid prosperity.