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Home Publications Blogs Beat the Press When It Comes to Argentina's Economy, the NYT Redefines "Stagnant"

When It Comes to Argentina's Economy, the NYT Redefines "Stagnant"

Tuesday, 05 July 2011 05:52

NYT readers must have been stunned to see the second paragraph of an article on the prospects for shale oil in Argentina refer to "the country’s long-stagnant economy."

According to data from the IMF, Argentina's economy grew at almost an 8 percent annual rate from 2003 to 2008, following a severe recession in 1998-2002. The world economic crisis brought its economy to a standstill in 2009, but it grew by 9.2 percent last year and is projected to grow 6.0 percent this year. This is stagnant?

Comments (9)Add Comment
freudian news
written by frankenduf, July 05, 2011 8:05
probably projection, mixed with some racism- our middle class has been long stagnant, so it is presumed that a lesser country is stagnant as well
Also: They defaulted! They must be full of fail!
written by Aaron Headly, July 05, 2011 9:04
Seriously, if you piss off the banksters, you get treated like a leper forever.

written by purple, July 05, 2011 11:06
It's projection, since we in the US have a stagnant economy.
written by Union Member, July 05, 2011 11:25

A Stagnant Tiger. Argentina didn't follow the Flat Earth prescription for that severe recession, choosing instead to chart their own course.
If only Portugal, Ireland, Spain, and Greece could be so independent, so democratic, so stagnant.
Once again ...
written by David, July 05, 2011 12:08
"We are all capable of believing things which we know to be untrue, and then, when we are finally proved wrong, impudently twisting the facts so as to show that we were right."
— George Orwell
In the long run..., Low-rated comment [Show]
depends on time frame
written by DanB, July 05, 2011 7:49
The question of whether or not Argentina's economy is "long-stagnant" isn't so much a question of what "stagnant" means as what "long" means. If you mean did they get robust growth for maybe 8 or 9 years following a severe recession, yes they did. But if by "long" they are referring to multiple decades, not just the last one, "stagnant" is, if anything, too rosy a term to use with respect to the Argentinian economy.

It just shows how failed western economic policies have been that western economists now get all worked up over less than a decades worth of strong growth. Economists in South Korea and China would be completely unimpressed.
written by Merijn Knibbe, July 06, 2011 6:24
A. A doubling of GDP in about 10 years means: revolutionary social, technological and infrastructural and economic changes. Compare the USA in 1919 and 1929 (and that wasn't even double digit growth). Growth is not so much caused by flexible markets and structural changes - it is flexibility and structural changes: new products, new markets, new life styles, new jobs, new companies, new customers, new houses. It's not: more of the same.

B. Nobody suggests (though we might state this more clearly) that devaluation in 2002 caused high economic growth in Argentina in 2009. Devaluation is also no substitute (not even a partial substitute) for technological, educational and infrastructural change. But the devaluation did break the financial stranglehold on the economy and enabled the Agentine population to unleash its full economic and creative power. Instead of bloodletting the patient it received CPR it needed.
Fears of the stablishment...
written by Henry Roman, July 06, 2011 12:14
The complaints of a few is the fear of many...
I think that the "global economic stablishment" is afraid that the Argentine solution will be implemented in Greece, Portugal, Ireland and Spain...Euro bubble is coming to an end.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.