Kirchner is doing something that no one has done in the history of Argentina in the last 50 years. He\u2019s created a surplus. While all of his predecessors poorly managed, issued worthless money, and got themselves even deeper into debt, Kirchner has taxed the country to a point where he now sits on the biggest fiscal surplus in the world. The fiscal prudence of Kirchner, combined with a generous social policy, is one of the greatest achievements during his presidency. However, it\u2019s a strategy that represents an enormous danger for him and the country.
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\nAfter renegotiating the country\u2019s public debt with great skill, obtaining a huge release, and creating an unbelievably profitable tax house for the country, the Kirchner administration is accumulating more and more reserves by the day. However, although it may be a security blanket for Kirchner, it could become a big incentive for a rival politician to start planning his move towards the presidency.<\/p>\n
Just like the stockholders of Microsoft get bigger dividends as the company achieves higher earnings (or those of IBM in its day), in a few years, Kirchner\u2019s future presidential rivals will base their campaigns on the promise of sharing the country\u2019s dividends among their constituents.<\/p>\n
And just like Bush wasted the Clinton-era surplus in his military adventures, and managed to bring the economy to a screeching halt, Kirchner\u2019s successor would be able to derail the country\u2019s economic growth with a populist based policy based on spending all of the savings that Kirchner has managed to accumulate.<\/p>\n