The opening case explores the state of the Argentine economy. Once one of the richest countries in the world, Argentina now struggles with high levels of inflation and extensive government debt. Argentina's problems have been attributed to a series of populist leaders who moved to nationalize numerous industries and expand state benefits. However, rather than benefitting the Argentine population, the short-sighted populist agenda has resulted in a situation in which imports and exports are taxed making it difficult for Argentina to participate in the global economy, The local currency is worthless prompting potential investors to look for other places for their money, and state-run businesses are inefficient and unproductive.

Discussion Questions

1. Reflect on the challenges facing Argentina.

2. Prior to the election of Juan Peron, Argentina had a strong economy and a promising future. Given this situation, what does the election of populist leader Juan Peron tell you? Given the current challenges facing Argentina, do you think it is likely that populist leaders will continue to be elected?