'Ley de Bases': What does the law really change?

The Law so called Ley de Bases approved by the Chamber of Representatives is technically more than a simple law. A law is intended to regulate the founding principles already established by a Constitution. This Bases law goes further. It establishes quasi-constitutional principles. That is why it is precisely called the Ley de Bases. It is an attempt to give a foundational legal basis to what would otherwise be a regulation of the economic and financial system of Argentina subject to future changes dictated by the legislative power.

The law wants to give foundational status to an economic and social system based on the free market. But it doesn't have the legal nature it proclaims even if it was approved by a super majority.

The free market is no more than an economic system based on supply and demand with little or no government control. One of the central principles of a free market is the concept of voluntary exchange, which is described as any transaction in which two parties freely exchange goods or services.

Free markets are characterized by a spontaneous and decentralized order of agreements through which individuals make economic decisions. A free market is one in which supply, and demand provide the only basis for the economic system, without government intervention. A central principle of free markets is the idea of ​​voluntary exchange, transactions in which buyers and sellers freely exchange goods and services.

When most people talk about "free markets,” they mean an economy with unimpeded competition and only private transactions between buyers and sellers. Its main characteristic is the absence of restrictions or incentives regarding economic activity.

The freest markets tend to coincide with countries that value private property, capitalism, and individual rights. This makes sense since political systems that avoid regulations or subsidies for individual behavior necessarily interfere less with voluntary economic transactions. Furthermore, free markets are more likely to grow and prosper in a system where property rights are protected, and capitalists have an incentive to seek profits.

A free market is one in which voluntary exchange and the laws of supply and demand are the basis of the economic system. Fundamentally, a free market is defined by the absence of government control. While no modern country has a completely free market, those that have relatively free markets tend to value private property, capitalism, and individual freedoms.

Most countries exhibit a combination of free market qualities and command economies. There is currently no country with an absolute market economy without some degree of regulation or state intervention. Even those with limited government regulation still maintain some level of intervention. Countries that rank high on economic freedom indices (based on free-market factors such as low taxes and minimal regulations) include Singapore, Switzerland, and Ireland.

On June 28, by a large majority in the House of Representatives, with 147 votes in favor and 107 against, the "Ley de Bases" was approved. This bill promotes private enterprise and the free development of industry and commerce, while limiting any unnecessary state intervention. But it only defines the main guiding principles that should follow the government in the future: modernize the State, encourage large investments, and implement significant labor reforms as goals to achieve. The law though gives the executive branch broad authority to restructure state agencies and privatize certain public companies. There is still a long way to go if the objective is to completely deregulate the economy and economic activity in general.