Defense rests in Sen. Bob Menendez’s federal bribery trial; senator declines to take stand The Daily Gazette
Day: July 3, 2024
By Daphne Posadas
Argentina’s inflation rate has recently dropped to its lowest point since January 2022, registering a monthly increase of 4.2 percent in May according to the National Institute of Statistics and Census (INDEC). Although annual inflation has slowed for the first time since mid-2023, it still stands at 276.4 percent, one of the highest rates globally.
When Javier Milei assumed the presidency in December 2023, monthly inflation had skyrocketed to an unprecedented 25.5 percent. Within five months, Milei’s administration managed to reduce this figure by more than 20 percentage points. Despite the persistently high annual inflation rate, the trend indicates potential stabilization of the Argentine economy.
Javier Milei’s reforms have been described as aggressive. In his inaugural speech, he emphasized the need to clean up the economy before implementing his promises to dollarize and close the central bank.
To achieve a zero deficit, Milei enacted a 35 percent reduction in public spending. He achieved this by closing half of the ministries and secretariats, suspending public works for a year, reducing subsidies for energy and transportation, canceling government advertising, and maintaining the 2023 budget for 2024 despite an inflation rate of 300 percent. Essentially, the government drastically cut its expenditures.
These measures, although unpopular, yielded results. Milei’s government not only avoided a deficit, but achieved a surplus, and most importantly, inflation began to decline.
Following the inflation story in Argentina recently brought to mind Henry Hazlitt’s famous 1978 article “Inflation in One Page.” As the title suggests, Hazlitt summarizes the causes and remedies of inflation in a brief and simple explanation. He argued that inflation is a consequence of government monetary policies, specifically excessive money printing due to unbalanced budgets caused by extravagant government spending.
1. Inflation is an increase in the quantity of money and credit. Its chief consequence is soaring prices. Therefore inflation—if we misuse the term to mean the rising prices themselves—is caused solely by printing more money. For this the government’s monetary policies are entirely responsible.
2. The most frequent reason for printing more money is the existence of an unbalanced budget. Unbalanced budgets are caused by extravagant expenditures which the government is unwilling or unable to pay for by raising corresponding tax revenues. The excessive expenditures are mainly the result of government efforts to redistribute wealth and income—in short, to force the productive to support the unproductive. This erodes the working incentives of both the productive and the unproductive.
3. The causes of inflation are not, as so often said, “multiple and complex,” but simply the result of printing too much money.
Hazlitt also discussed the cure for inflation in his bookThe Inflation Crisis, and How To Resolve It, asserting that the solution lies in halting the increase in money and credit:
The cure for inflation, like most cures, consists chiefly in the removal of the cause. The cause of price inflation is the increase in money and credit. The cure is to stop inflating. It is as simple as that. Although simple in principle, this cure often involves complex and disagreeable decisions in detail.
Javier Milei, anavid reader of Henry Hazlitt, appears to have effectively applied these principles in his economic strategy.
Hazlitt anticipated thatradicaldecisions to solve inflation would be disagreeable, and indeed, many Argentinians have expressed discontent with the measures implemented in the last few months.
But despite the controversy, Milei’s approach is a compelling example of how free-market principles and a limited government can address economic challenges.
- About the author: Daphne Posadas is the Project Manager and Brand Ambassador for FEE en Español.
- Source: This article was published by FEE
By Soham Patil
For quite a considerable amount of time, the topics ofjob creationand unemployment have been central to every political campaign in almost every country. It hasn’t been without good reason, either, sincejob securityis one of the most important factors in someone’scareer. Therefore, a candidate who can promise to create more jobs and sustain job growth would appear on paper to be the better candidate. However, there are few policies that promote greater havoc than job-creation programs. This should not be a surprise since the state is ultimately not responsible for financing jobs, so it need not worry about profit or loss.
Politicians are inclined to include job-creation programs in their promises because they are often popular with voters. After all, if there are more jobs in the economy, unemployment will be lower, and there is a greater likelihood that workers in the country will not fall on hard times. Since nearly every household has a member of their family who works, job-creation programs have nearly universal appeal. If a politician can position themselves as a job creator, they garner a massive boost toward their odds of being elected. Thus, they all aim to one-up each other with what they promise to voters. Unfortunately, in this case, competition does not lead to better results.
It is not proper to think a politician creates jobs in the same way an entrepreneur does. An entrepreneur risks his time, effort, and capital to run a business to serve consumers and turn a profit. Entrepreneurs seek to profit by providing value to consumers. For them to succeed in their venture, they must hire workers to contribute to their projects. When a business venture is started, jobs are created as workers help the business to facilitate value to the consumers. In the free market, jobs are created because resources, including labor, are used efficiently to create value in the economy.
The same is not true when a job-creation program is pushed through by politicians. There are only a few ways in which politicians can create jobs. Most of these efforts include the subsidization of certain businesses or by inducing regulation with the hope of it leading to more jobs. The former is a particularly terrible way of promoting business as it requires the state to fund the program. Ultimately, this means that taxpayers bear the brunt of having to subsidize businesses that the state deems appropriate to receive funding. Effectively, the state steals from its citizens and gives the money to a firm with a good political standing with the hope that the firm will create jobs. This is in stark contrast to the way jobs are created via the free market asthe state does not really need to prove thatvalue is generatedfor consumers. It only needs to prove that jobs increased as a result of state funding. By getting involved, the state lowers the efficiency of resource utilization.
The same is true when regulation is induced with the intent of job creation. A prominent example commonly used by politicians nowadays is tariffs. Tariffs are levied with the hope that domestic industry will thrive as foreign competitors are priced out of the market. While this may boost jobs, protectionist policy has significantly greater negative impacts on the economy of a country. By levying tariffs, consumers are forced to pay higher prices, often for inferior products. This lowers their standard of living and leaves them with less disposable income to spend on other needs or wants. However, these unintended consequences are never mentioned because politicians have no wish to demonstrate that their jobs are of negative value.
For circumstances to improve, we must realize that wanting the state to create jobs leads to disastrous results and does not make economic sense. Such attempts are only made now because they are politically popular. Real progress can be made only by asking the state to reduce their interference in the lives of citizens who are then allowed to work toward a better future for themselves. We would be better off if our politicians did less rather than more. Thus, we should ask for them to get out of the way rather than stand in the way.
- About the author: Soham Patil is a high school senior at Symbiosis International School. He is passionate about Austrian Economics and Philosophy.
- Source: This article was published by the Mises Institute
By Vidka Atanasova
(RFE/RL) — At a historic summit next week in Washington, NATO will be celebrating its 75th anniversary and strategizing how to further aid Ukraine against Russia’s full-scale invasion.
Heads of state and government from the alliance’s 32 members — including Sweden, which justjoinedin March, and Finland, which joined in April 2023 — are scheduled to attend the gathering from July 9-11.
Noticeably absent, however, will be the president of Bulgaria, which has been a member of NATO since 2004. Rumen Radev has said he was not consulted over a document to be presented at the summit that spells out Bulgaria’s official stance on Russia’s war against Ukraine and the alliance’s commitments to helping Kyiv. Instead, only acting Prime Minister Dimitar Glavchev will attend, instead of together with Radev as had been planned.
Radev, 61, whose position is largely ceremonial but offers a platform to influence public opinion, has made clear he does not support sending military aid to Ukraine, arguing such assistance only prolongs the conflict. He has referred to those who favor such support as “warmongers.”
Delyan Peevski, leader of the liberal Movement For Rights And Freedoms (DPS) and one of Radev’s more vocal critics, called the refusal “a confirmation that Radev’s positions serve foreign, not national interests and are subjected to dependencies and ties in the East, contrary to the Euro-Atlantic values and principles.” (Peevski has been sanctioned by the United States and Britain for alleged corruption.)
Others have expressed relief that Radev will not be accompanying Glavchev to the summit, amid worries the former air force pilot could use the gathering as a platform to air his Kremlin-friendly views.
“In order to find a positive in the whole picture, at least we won’t have any worries that Bulgaria will have an ambiguous position at the meeting in Washington,” offered Elena Poptodorova, a former Bulgarian ambassador to the United States.
“Otherwise, we would have been nervously waiting to see exactly how the president would represent the national position if he were Bulgaria’s official spokesperson in Washington,” PoptodorovatoldRFE/RL’s Bulgarian Service.
NATO Skepticism
Radev said his decision to boycott the NATO summit hinged on his role, or lack thereof, in crafting Bulgaria’s official stance and its commitments regarding Russia’s war on Ukraine. Radev said he was not consulted when the Council of Ministers — Bulgaria’s top executive body comprising the prime minister and other senior ministers — agreed on the provisions of this position, his office said on June 27.
Failure to publicly release the government’s position has fueled speculation by some politicians, mostly those friendly to the Kremlin, that officials were up to something more sinister.
“I hope that we will all see what is written in this text and understand why it was in no way consulted in advance with the president, [and] why there are reservations about it being presented to [parliament],” said Vice President Iliana Iotova, Radev’s running mate in the 2016 presidential election, on June 27.
On June 28, the government press office did state that the position staked out by the Council of Ministers includes a reaffirmation of Sofia’s military support for Kyiv, as well as an understanding that Ukraine should not be forced to give up territory to achieve any peace with Russia.
Acting Defense Minister Atanas Zapryanov added that the official position could not be published because it also contained classified information.
A few days later on July 1, acting premier Glavchev did say he would send later that day the contents of Sofia’s official position to the Classified Information Registry of parliament. That would allow deputies in the National Assembly, Bulgaria’s unicameral parliament, to familiarize themselves with its content.
Glavchev dismissed as “absurd” allegations that the cabinet may be pushing Bulgaria into war. “There is nothing in it that is different from the positions and the resolutions of the National Assembly,” he added.
Radev has long voiced skepticism of NATO aiding Ukraine and has tried toblocksuch efforts, claiming it will only fuel a wider conflict, a narrative embraced by other pro-Kremlin figures, including Hungarian Prime Minister Viktor Orban.
In fact, in May, when Sofia hosted a meeting of the NATO Parliamentary Assembly, Radevinsteadtraveled to Budapest for talks with Orban, whose government has also worked to block aid to Ukraine.
The upcoming summit in Washington will focus on three major topics, according toJens Stoltenberg,NATO’s secretary-general, with supporting Ukraine’s efforts to defend itself “the most urgent” agenda item.
By not attending, Radev will be sending a “harmful” message to Bulgaria’s NATO’s partners, said Assen Agov, a former Bulgarian lawmaker and ex-deputy chairman of the NATO Parliamentary Assembly.
“He’s discrediting the country, thinking he’s scoring points in some peace process that doesn’t exist,” Agov told RFE/RL.
- Vidka Atanasova joined RFE/RL’s Bulgarian Service in Sofia in 2022 after 20 years working in online journalism, including with Dnes.bg and Dnevnik.
The presidential election’s second round in Iran is scheduled for Friday, July 5, ultimately determining the country’s next president between two candidates chosen during the first round.
Last Friday, Iran held the first round of its presidential election. In protest against the Islamic Republic’s policies, many citizens chose to boycott the election by not participating in the voting process.
According to official statistics, the first round of the Iranian presidential election saw a turnout of only 39.92%, meaning that out of approximately 61.5 million eligible voters, just over 24.5 million people cast their ballots. This low participation rate reflects the disillusionment of many Iranians with the political system and its impact on their lives.
Among the candidates who were approved by the council under the supervision of the leader of the Islamic Republic of Iran, Ali Khamenei, to participate in this election, Mr. Masoud Pezeshkian received 42.45% of the votes, and Mr. Saeed Jalili received 38.61% of the votes.
Masoud Pezeshkian, who is 69 years old, has been a member of Iran’s parliament since 2008 and served as the minister of health for four years before his parliamentary tenure.
A faction of the Islamic Republic regime, known as reformists, supports Masoud Pezeshkian. Although they are often described as reformists, their goal is to maintain the existing regime, albeit in a less strict manner.
Pezeshkian’s campaign gained momentum when he was endorsed by prominent reformist figures, including former President Mohammad Khatami, and when he appointed Mohammad Javad Zarif, a key figure in the Iranian nuclear deal, as his foreign policy advisor.
Masoud Pezeshkian has stated multiple times throughout his campaign that he will adhere to the plans of Iran’s leader if he becomes the country’s president.
Saeed Jalili, the 55-year-old presidential candidate in Iran, has held significant diplomatic and security roles within the government. He has close ties to extremist political groups in the country and is seen as a hard-liner.
Saeed Jalili, an Iranian ultra-conservative politician, was the secretary of the Supreme National Security Council from 2007 to 2013. Currently, he is a member of the Expediency Discernment Council. Jalili served as Iran’s nuclear negotiator for six years, a period during which the UN Security Council issued three resolutions against Iran’s nuclear programs.
But the main thing that should be noted is that this government of Iran isn’t based on the minimal principles of democracy, where people’s votes are effective. It is a religious totalitarian government that uses all facilities for its survival, and citizens are expected to boycott the ballot boxes.
Over the years, the mullahs in Tehran have used election engineering, completely removing candidates and engaging in dangerous vote rigging. They present unrealistic statistical figures to introduce people as the president who align with Regime plans.
Recently, Abram Pali, the US government’s special representative for Iran affairs, wrote on the X social network: “Unfortunately, America has no expectations of free and fair elections or a fundamental change in Iran’s path.”
In fact, in the elections of the last two decades, regardless of the votes that were cast, a person in Iran became the president who could have better advanced Ali Khamenei’s goals at that time.
In fact, in the elections of the last two decades, regardless of the votes that were cast, a person in Iran became the president who could have better advanced Ali Khamenei’s goals at that time.
I have reviewed the text from a grammatical standpoint and made some adjustments to improve clarity:
With these conditions, the fundamental question arises: what message does the choice of each of the two final candidates for the presidency of Iran convey to the Western world?
During Donald Trump’s presidency, the US government imposed crippling financial and oil sanctions on Iran to force Tehran to comply with the global order. As a result, the country’s oil exports dropped from nearly 3 million barrels per day to below 300,000 barrels, and the transfer of dollars to Iran was completely blocked.
The Biden administration, however, turned a blind eye to these sanctions, allowing Iran to sell 1.6 million barrels of crude oil daily in international markets. In addition to the oil and gas condensates sold by the Islamic Republic in international markets, the total reaches 1.9 million barrels.
For Iran, Trump’s return to the White House would mean the reinstatement of paralyzing sanctions and Tehran’s mullahs are acutely aware of this danger and its imminent approach.
Meanwhile, the situation in the Middle East is volatile, and tensions in the region are running high. The possibility of a war between Israel and Lebanon’s ” Lebanese Hezbollah terrorist group” considered the main military arm of the Iranian regime in the Middle East, cannot be ignored.
If the Iranian regime decides to confront the world, Mr. Saeed Jalili will be announced as the president next Saturday.
Conversely, if Ali Khamenei opts for a policy of buying time and initiates protracted negotiations with the West to overcome difficult times, Masoud Pezeshkian will assume the presidency.
In reality, Saeed Jalili is the cold iron fist against the West, while Masoud Pezeshkian is the iron fist with a velvet glove. One is for confrontation with the West, and the other is for confrontation with the West but with a negotiation gesture.
As Morocco is faced with an increasing crisis of youth unemployment, the High Atlas Foundation aims to respond by establishing a workforce training program to help promote community economic and social development.
The trajectory of a country and the implementation of policy changes have come to fruition with the consideration of the impact that they will have on future generations. As the Kingdom of Morocco has shifted their focus on development, the newest phase within the National Human Development Initiative places a strong emphasis upon youth. Focusing on the empowerment and economic security of youth within Morocco, creates significant strides in breaking systematic cycles of poverty and increasing human development of communities. In order to address human and economic development of youth and the stability of communities the High Atlas Foundation aims to respond to this call by establishing a youth-focused economic empowerment and training program.
The demographics of youth aredefinedinternationally to be within the age ranges of 15 to 24 years old. When looking at economic factors oftentimes the age demographics are expanded towards including those from 15 to 29 years of age, to get a broader look into the success of youth within the current workforce environment. Youth within the context of Moroccoaccordingto data released in 2022, constitute around 6 million citizens within a country with a population of around 37 million inhabitants. Looking at further statistics what is even more pressing is the breakdown of the economic and educational status of youth within Morocco. Currently around 1.5 million Moroccan youthfaceissues of job insecurity including lack of participation in educational or vocational pursuits, which constitute 29.7% of Moroccans facing unemployment within youth demographics.
The Morocco High Commissioner for Planning’s reportfurthershowcased the regions and urban-rural divide that unemployed youth are within, with the majority living in the urban areas especially Casablanca and Marrakech. As this demographic is the newest to enter into the job market within Morocco, these statistics show insights into the current Moroccan job market, demographic, and industry instability.
The issue of youth unemployment and job insecurity has been a systematic issue for years within Morocco, which iscorrelated towardsthe relationship between the number of people entering the workforce which is outpacing the number of unskilled laborious jobs available and the lack of educational access towards pursuing other vocational ventures. The vulnerability and potential for adverse externalities related to youth unemployment, especially increasing emigration patterns, potential instability, and the further cycles of underdevelopment, is the primary reason that increasing reforms and the emphasis on workforce training programs have begun to be undertaken by the Moroccan government.
Whenfacedwith economic instability, there is a positive correlation between increased feelings of isolationism and social exclusion leading to further adverse psychological effects amongst youth. In order to gain a sense of social connection, youth have the potential to become intertwined with crime and violence, leaving them in a precarious social balance. As seen with studies of international youth unemployment, discontent can lead to cases of political and social
instabilityfueledby the social tensions and lack of opportunities facing marginalized groups. In order to escape the volatility, emigration has been seen as a potential path for Moroccan youth that are hoping to find employment abroad and therefore financially support extended family within Morocco. According to reports,upwardsof 70% of Moroccan youth wish to emigrate due to the job market’s lack of opportunity. Those who decide to engage with the domestic economy, when confronted with long-term unemployment face being stuck within cycles of community underdevelopment. Without having a source of stable income, youth aren’t financially able to support their families or communities and are not given opportunities to advance from cycles of poverty. Yet, the providing of a workforce training program gives youth the sustainable long-term skills in order to establish their economic independence and sources of income.
Acknowledging the correlation that comes with how large gains in development are created and furthered when economic opportunities are increased, the Kingdom of Morocco established a 2021 report surrounding economic development goals for the Kingdom to reach by 2035, with a heavy emphasis on youth. The human development methodologyestablishedfor socio-economic reintegration and solutions to the Moroccan unemployment crisis, is government emphasis on vocational and workforce training programs for youth. This is due to the emphasis of the role of youth on furthering and ultimately reaching Morocco’s development goals.
In response to the call for increases in economic training programs, the High Atlas Foundation, a Moroccan-US 501(c)(3) committed to Moroccan sustainable development, is in the process of establishing an economic-agricultural training and empowerment program for economically at-risk young adults. By focusing on two demographics of youth, those that have previously been incarcerated for non-violent crimes and recent college graduates, both which have statistically high rates of financial volatility, the program will give participants short-term employment that provides the opportunity to learn training and skills, leadership development, and preparation to enter the workforce and have future stable and sustainable employment opportunities.
The US needs to wake up and build ships like this Russian armed icebreaker. Russia has dozens of icebreakers, armed and nuclear powered. We have one Coast Guard icebreaker. Both the US and NATO need to look north. https://t.co/Cn5pHXHIq9
— Admiral James Stavridis, USN, Ret. (@stavridisj) July 3, 2024