Price control, the last resort?


Almost two months ago, in this space it was commented that the Government of the Republic was weighing the option of controlling inflation with the oldest and most risky government program: price control.

Until last Tuesday, the people of Rogelio Ramírez de la O in the SHCP were doing numbers to calculate the cost of a plan to help the population overcome the irrepressible rise in prices of food and services.

It could be inferred that this aid plan would be very costly, perhaps too expensive, since the National Palace said yesterday, March 31, that if inflation persists in products and services of the basic basket, they will have no other choice but to impose price controls. .

Electricity: good lawsuit or bad arrangement?

Accompanying John Kerry, the White House official assigned to climate change issues, was a group of investors in the electricity sector with President Andrés Manuel Obrador.

“It will be explained to them that the conditions have changed,” said the President. Perhaps he did, but one assumes that the change does not mean sacrificing his investments, because it would create a conflict with Mexico’s main trading partner.

If negotiations, future litigation will deteriorate the commercial and financial relationship. Any agreement, no matter how bad, is more productive than a good lawsuit, like the one that so many rowdy people seem to prefer.

Without consensus there will be no growth, they say

Unacceptable, they warned us, for the transformation regime, José Ángel Gurría’s suggestion of a fiscal reform and the goal of growing five percent annually for two generations to resolve Mexico’s ancestral burdens.

Perhaps, but possibly they prefer the recommendation of Ronaldo Cordera, an economist with irreproachable credentials on the Mexican left, who affirms that it has been a mistake to make a fetish of macroeconomic stability.

Cordera suggests national consensus for transexennial programs for growth with justice. Without being an economist, who writes this does not accept that because of ideological garbage Mexico is condemned to be a paper boat in stormy seas.

SWIRL NOTES

75 percent of homicides are caused by drug trafficking, they tell us, but no one talks about how organized crime gangs usurp state functions and how, like weeds, their influence spreads far and wide Republic… The head of the Interior, Adán Augusto López, will do poorly in hearing the song of the sirens. Especially when he has direct communication with the sole driver of the presidential succession process… The drought revives local and regional conflicts. Hopefully, the federal and state governments coordinate to serve them, because, as journalist Olga Moreno said a long time ago: “in Mexico, people kill themselves for water and for land”… If the PRI, like other opponents, listen to their ill-wishers, they will end up saying to their children: “these ruins that you see”… It is an electoral struggle, true, but what is disturbing are the authoritarian impulses encouraged from Power against all those who are not devout parishioners of the 4T… A pertinent reflection of veteran North American journalist Dan Rather: “A hard lesson that life teaches us is that not everyone wants us to do well”…

Joseph Fonseca

Political Journalist

political cafe



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