Francisco Ruiz

POST

The one who Buys Cheap, Buys twice

23 Feb 2024

The austerity was the banner of the government today has for us citizens and our democracy with the foot on the neck, and in political campaigns this same false promise of austerity is repeated again and again. This apparent virtue becomes a mirage when it delves into the true implications that has for society. The search of governments more austere, more efficient, is a conceptual error that is costing us dearly, not only in Mexico but throughout the world.

Governments, unlike companies, rely on a fixed income that are largely a percentage of what the citizens generate, that is to say, the taxes. This money is not something that the government can decide not to spend; on the contrary, it is his responsibility to use it in the most efficient way possible. However, under the banner of austerity, some socialist governments have fallen into the trap of believing the citizenship that spending less is a synonym to better manage. This could not be further from the reality.

As an example, the situation of the Instituto Nacional Electoral (INE). Reduce the budget allocated to the entity in charge of organizing the elections only benefits those who, in ways not democratic, seeking to perpetuate itself in power. This type of “savings” not only undermines the foundations of democracy, but also opens doors to corruption, to allow the funds to be diverted to purposes other than those originally intended.

The case of the detainee airport of the City of Mexico and the strategy of borrowing to maintain a dollar cheap are examples of how the austerity misunderstood can lead to decisions that, far from benefiting the country, end up costing more. These decisions not only have a direct economic impact, but also affect the perception of international and confidence in the management of the country.

The strategy of the present government of Mexico, led by Andrés Manuel López Obrador, of the reduction of public spending in crucial areas such as transparency and accountability, has resulted in an administration more opaque. This makes it difficult, and in many cases impossible, that the citizens have access to critical information, limiting their capacity to demand accountability and to take informed decisions.

The assumptions of social programs without a register clear beneficiaries are another example of how these savings can be actually a mirage. Without a record of who gets what, how much, and why, citizens have no way of knowing if these programs are fulfilling their purpose or if the money is being used efficiently. Given this scenario, the mexicans we are at a turning point. The phrase “he who buys cheap, buys twice” has never resonated with so much force. We've bought into the idea of austerity at a very low price, only to discover that this is not, has not managed to deliver not a single desirable outcome. With the elections next June 2 at the view, we have the opportunity to “buy back”, to choose a different path. Although the options may seem limited, today, we know what we don't. It is time to go for a government that prioritizes efficiency over the false austerity, which invests in strengthening the institutions and to ensure the transparency, so as to ensure a more promising future for all.

Francisco Javier Ruiz Lopez, a Businessman from Aguascalientes

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