How Progressive are Progressive Economic Policies? A Note on Latin America's 'Catch 22'

Stefan de Vyider
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Stefan de Vyider: Stockholm School of Economics

Economic and Industrial Democracy, 1991, vol. 12, issue 1, 19-29

Abstract: Most attempts by left-wing regimes to reduce Latin America's appalling inequalities in income and opportunities have failed. This article summarizes a few conclusions that can be drawn from wellintentioned but largely counterproductive policies carried out in the name of equality. Among these lessons can be mentioned: (1) the more,progressive' a government is, the more important it becomes to maintain conservative macroeconomic policies; (2) although inflation hurts the poor, attempts to suppress inflation with the help of subsidies, price controls and massive increases in state expenditure tend to hurt the poorest of the poor; and (3) honest, radical governments attacking 'speculation' with the wrong means easily end up creating an economic environment where honesty is punished, while 'speculation' and corruption are rewarded.

Date: 1991
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecoind:v:12:y:1991:i:1:p:19-29

DOI: 10.1177/0143831X91121003

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