False economy What’s in it for me? Understand what makes the

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False economy
What’s in it for me? Understand what makes the 
world’s greatest economies tick.
Did you ever wonder why some countries 
prosper while others fail? Is this all due to 
climate, natural resources, and the different 
mentalities of the people in those nations? Or 
can it all be chalked up to choices made by their 
respective governments? Why is it that the 
United States and Argentina followed extremely 
different trajectories even though they started 
out with similar economic conditions?
These blinks will explore all these questions as 
you learn about the economic histories of 
several globally important nations.
In these blinks, you’ll also learn:

About parasitic cities;

Why there’s so much asparagus in Peru; 
and

How oil can make a society extremely 
volatile.
Important choices, not fate, determined the 
economic state of Argentina and the United 
States.
Have you ever wondered why a country like the 
United States is a giant in the world economy, 
while a country like Argentina has continually 
struggled? As we’ll see, this was not something 
that happened by chance.
As a matter of fact, Argentina and the United 
States started out in very similar situations.
The United States officially became an 
independent nation when its constitution came 
into effect in 1789. Argentina was particularly 
inspired by the American revolution, and in 1816 
Argentinian rebels took control of their 
government 
to 
establish 
their 
own 
independence. And as these two countries 
started out, both nations had similar economic 
outlooks based on rich agricultural promise and 
plenty of fertile land.
But the two paths diverged when the countries 
made different choices on how to develop their 
land.
America chose to divide their land up between 
skilled individuals and families. Capable farmers 
from Europe arrived to make the most of the 
opportunity, and they helped expand and settle 
America’s western frontier.
Conversely, Argentina decided to divide its land 
among a select few rich and powerful landlords. 
As a result, its agricultural potential was stunted 
because the policy failed to attract skilled 
laborers and farmers to develop the land.
The two nation’s paths continued to diverge 
following twentieth-century industrialization.
While the United States embraced the 
manufacturing industries and the foreign trade 
possibilities they presented, Argentina shut itself 
off in an effort to become self-sufficient. 
Argentina rejected the interests of foreign 
investors and the risky business of globalization, 
preferring instead to protect its government 
monopolies.
So, as the US economy flourished in the 
twentieth century, Argentina continued to seal off 
its manufacturing businesses by keeping out 
imports and heavily taxing exports. In 2001, in its 
efforts to be self-reliant, Argentina was forced 
into one of the largest government bankruptcies 
in history.