Keynesian and Hegemonic Delusions

Keynesian and Hegemonic Delusions

Originally Posted on November 3, 2017

By: Erreh Svaia

Caprine Dispersion

"Everyone imposes their own system to the extent that their army can reach it."

Joseph Stalin

Two recent news regarding the until today only presidential candidate caught my attention this weekend, the first concerning his proposal of "decentralization" of the Federal Government, rearming each Secretary geographically in order to redistribute "the economic spill" in a more equitable in the states of the Republic, hence the following distribution:

Tourism to Chetumal, Quintana Roo;

Environment to Mérida, Yucatán;

PEMEX to Ciudad del Carmen, Campeche;

Energy to Villahermosa, Tabasco;

CFE to Tuxtla Gutiérrez, Chiapas;

CONAGUA to Veracruz, Veracruz;

Social Development in Oaxaca, Oaxaca;

SEP to Puebla, Puebla;

Culture to Tlaxcala, Tlaxcala;

Roads and Bridges to Cuernavaca, Morelos;

INFONAVIT to Toluca, State of Mexico;

Health to Chilpancingo, Guerrero;

IMSS to Morelia, Michoacán;

Livestock to Guadalajara, Jalisco;

ISSSTE to Colima, Colima;

INEGI to Aguascalientes, Aguascalientes;

Public Function (Comptroller) to Querétaro, Qro;

Secretary of Labor to León, Guanajuato;

Urban Development to Pachuca, Hidalgo;

DICONSA to Zacatecas, Zacatecas;

Communications and Transportation to San Luis Potosí, SLP;

Economy to Monterrey, Nuevo León;

Nacional Financiera to Torreón, Coahuila;

The Forestry Commission to Durango, Durango;

Mining to Chihuahua, Chihuahua;

Customs to Nuevo Laredo, Tamaulipas;

FONATUR to Bahía de Banderas, Nayarit;

Fishing to Mazatlan, Sinaloa;

Agriculture to Ciudad Obregón, Sonora;

CONACYT to La Paz, Baja California Sur;

SAT to Mexicali, Baja California

To many this proposal will seem quite praiseworthy, as it seems to say "we are going to decentralize power", we could even equate the measure with the initiatives of the former president PRIísta Ernesto Zedillo, by the way, political godfather who has announced this proposal, Andrés López , initiatives that ended with the so-called "imperial presidency", strongly reducing the power of the president of the republic (obviously anticipating the electoral defeat that the PRI would suffer in 2000), this time the proposal comes as a result of the political ambition of Lopez to occupy the presidential chair in 2018, being unable to place a single candidate in a political position in each of the electoral contests of recent years, this initiative seems perfect for Lopez, in case of winning, could make his unattainable political dream, to put a subordinate in each state of the country, an official directly under his orders To operate according to his will eclipsing the power of the governors (power that was increased after Zedillo's initiative), under this scheme, Lopez, without his party having to electorally position his people in Nuevo León, Tamaulipas, Sonora, Sinaloa, Baja California, Baja California Sur, Chihuahua, Coahuila, where their political power is currently nil, hence the deceitful and Machiavellian of such a proposal that many will already be innocently thinking of beneficial to the country.

Part of the deception is also to point out that this "decentralization" would mean a greater or more equitable economic spillover in the country, in the first place omitting that there is already a process for the distribution of the budget of each Secretary, in second, reinforcing the false notion " Keynesian "that the government is responsible for generating wealth and growth, it would be convenient to request Andrés López. Why is not the growth of the small and micro businessman in the whole country being considered, why are they not favored in their proposal with less entry barriers and more facilities to establish and prevail ?, Do not forget that the small and micro business is the one that truly generates growth and wealth with up to 95% of income in the country, and that their proposals "to them to the business community ", they have not arrived or have been made public by the fear of infuriating the hard wing of their party, we must not forget that in Mo There is a fraction very similar to the Bolivarian project (Socialism of the 21st Century), therefore, these meetings with businessmen are usually closed doors, on the other hand, Lopez also mentions his intention to create new Secretariats, which implies more “State presence”, more government, more bureaucracy and more burden for the country, one of those mentioned as a new creation would be a charge to Mining, a signal that generates suspicion after his recent statement about bringing back to the country the mining union leader Napoleon Gómez Urrutia, asylee in Canada and accused of diverting funds.

Another curious point that draws attention to the topic of "economic spillover" corresponds to the CDMX (Mexico City), in which López points out that a large part of the "wealth generated" by these Secretariats remains, curiously today "without secretaries" such as Nuevo León, Querétaro, Aguascalientes, San Luis Potosí and Guanajuato grow more than CDMX, while on the one hand Lopez attacks his political rival Miguel Mancera, Head of Government of CDMX accusing him of plunging the city into stagnation, on the other hand it is an "oasis of growth" thanks to the Secretariats, on the other hand it denounces the stagnation or malfunction in a large part of the country, without recognizing states with GDP growth above even the impressive 6% of a rising country like China, will not it then announce these growths as a result of its "decentralization"?

We have seen how in countries like the US, Donald Trump's inability to govern has created a favorable political vacuum that has inhibited intervention in the economy which in turn has generated enthusiasm and unexpected growth (while in the areas that he has intervened, the trade deficit with China has increased), in Spain, after a year of inability of the political parties to generate a governing coalition, the country has continued growing out of the recession and the economic crisis derived from the global situation in 2008 , in Nuevo León, the absence of government by Governor Jaime Rodríguez has also been beneficial for the business sector that continues to push the economic growth of the state and the reduction of poverty, so it would not be a mistake to point out Lopez, that while your "decentralizing" proposal will generate more bureaucracy and more government, what this country requires is the opposite.

The other news corresponds to the section Bello, of the English newspaper The Economist, in which the names of López and of the ex- president Lázaro Cárdenas are mentioned, causing the faint of some of the followers of Lopez, who have made their own false conjectures, first regarding the historical image of Lázaro Cárdenas, as a great ruler, and secondly, encouraging the idea that the article compares both figures favorably, in the first place, Lázaro Cárdenas was a populist (in the Latin American sense of the term, descendant of European fascism, not on the American side of the term.), admirer of Joseph Stalin, the Bolshevik tyrant, created a cult of his personality, rewriting history around him, destroyed the field by dividing up large estates and distributing land without the support or necessary follow-up for the development of this sector, I believe government monopolies that made obsolete the oil industry, became a partners in crime to the government to business leaders who sold the vote of their union members in exchange for bribes, if that were not enough, we should thank Cárdenas, in the purest Stalinist style, the creation of a hegemonic party that would become the dictatorship of the longest party in the country, the PRI, even if we stayed with the simplistic vision of The Economist, the article does not see Lopez favorably about Cárdenas, points out his rejection of reforms, institutions, his inability to create consensus and proclivity to divide society, and their inclination to use parties for their personal benefit.

Let's not be fooled.