James Heckman Expresses Optimism About Javier Milei's Model: "The Reform and Education Plans Are Impressive"

"I believe that the experiment being carried out in Argentina, trying to deregulate the economy, is very exciting," began his presentation about our country by Nobel Prize-winning economist (2000) James Heckman, who visited Buenos Aires to participate in the event "Winds of Change" organized by the Liberty and Progress Foundation.

During the panel "The Role of Human Capital and Family Structure in Human Flourishing," the 82-year-old economist noted: "For me, deregulation policies are encouraging. It means that it is possible to imagine an opening and explore new forms of organization ---whether business or public policy---. I would encourage greater synergy between academic research and the practical implementation of policies. What happens ---both in my country and others--- is that much of the academic research is simply ignored because it does not favor powerful sectors**.

He categorized Argentina as a "mystery." "It is a very productive country, but with a disastrous political tradition: Peronism, an entrenched bureaucracy, and rooted power groups that prevent access for those outside the system. So I think having that flexibility ---trying to build something outside of all that--- is something powerful. It is liberating," the academic emphasized.

After Heckman's presentation at "Winds of Change," Agustín Etchebarne, General Director of the Liberty and Progress Foundation, defined him as one of the economists with the most "heart."

Heckman met last week with President Javier Milei and the Minister of Human Capital, Sandra Pettovello, at Casa Rosada. He then visited Luis Toto Caputo and José Luis Daza at the Ministry of Finance.

After that series of meetings, Heckman was preparing to return to his home country and, before reaching the airport, answered a few questions exclusively for Ámbito. He compared Javier Milei to Gulliver and Peronism to the Lilliputians, who tie down the giant, and highlighted that the government's reform programs are "impressive."

Journalist: During the "Winds of Change" event, you expressed optimism about Argentina. Do you believe the country has a real opportunity for long-term growth? What are the main challenges for the government?

James Heckman: Yes, it has great possibilities. I think of Gulliver's Travels, where the Lilliputians tie down Gulliver. In this case, the Lilliputians are the Peronists. Unleash Gulliver and he will roar.

Q: Did you have the opportunity to discuss the economic program with Minister Luis Caputo? What is your opinion on the government's economic plan?

J.H.: About some parts. The reform and education plans are impressive.

Q: Child poverty in Argentina hovers around 42%, and nearly 10% of children live in extreme poverty. Did you have the opportunity to discuss this with President Milei or Minister Sandra Pettovello? What do you think Argentina should do to reduce child poverty?

J.H.: There are short-term and long-term responses. In the long term, strengthen the family. Create better opportunities by opening labor markets, reducing regulations, and union restrictions.

Q: You spent several days in Argentina. What impression did you have of poverty and social conditions in the country? Was there anything that surprised you?

J.H.: I was there too short a time to make significant observations.

Q: Families with children are more vulnerable to poverty in Argentina. At the same time, the country is experiencing a decline in the birth rate. Do you think this could become a long-term problem?

J.H.: No. A decrease in the population growth rate, in the long term, will benefit the country. It will increase per capita income, wages, and capital formation. In the short term, there will be serious transitional problems with a pay-as-you-go pension system. The tax base is shrinking. Transfers will need to decrease in real terms, and otherwise, taxes will need to be increased. This creates real pressure on the system.

Q: Do you think Artificial Intelligence needs more regulation? In Argentina, the media claims that AI companies use their content without paying for it, even articles that are only available to subscribers. The same problem exists in the United States.

J.H.: Information has characteristics of a public good. Accessing and distributing real information has great value. AI should pay a subscription, like anyone else, and distribute it to everyone.

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