Evaluating Argentinas Welfare Policies and the Impact on the Economy

Argentinas distinctive and abnormal economic phenomenon and its special welfare system are certainly valuable for investigation. The main purpose of this article is to evaluate the welfare system and policies implemented by Argentina government through the last century, and the influences onto the whole economy. The result shows that, despite the high financial resources being invested into the welfare system, the success of welfare policies only lasted for a few decades before the whole system encountered a decline in late 1970s and finally collapsed through the lost decades of Argentina. Also, as the result of welfare policies remaining inefficient, the large amount of money that used to maintain welfare system become the burden of Argentina economy, causing debt crisis. Considering the fact that the fundamental problem was the government deficit and debt level, to prevent such situation to happen again, several policies might be available and effective. These policies include cutting government spending or adopting privatization strategy, which would outsource the welfare section to private sector and reduce government burden.