Wednesday, December 8

Legislative inflation and economic inflation: impact on freedom, law and the economy

1 | The legal aspect

We have not arbitrarily mentioned the description of inflation as a socio-economic phenomenon, on the contrary, we have placed the premise of analysis emphasizing the social aspect, involving in this postulate the real evaluative legal aspect, the principles of certainty. of law, freedom in the broad sense of content and then the economic aspect not as a cause of the phenomenon but as a consequence of it.

Once the analysis premises have been established, we will try to develop the content of the thought proposal. The first question that we propose to develop is:

What is legislative inflation?

We understand, following Dr. Bruno Leoni (conf. La Libertad y la Ley Edit. Unión Editorial-Madrid 2016) that our legal-political system has developed such an excessive and cumbersome legislative framework in all areas both economic, social, tax, social security, health, etc. etc., which has generated a true system of coercion against the autonomy of development, progress, social welfare, job creation, ultimately freedom and dignity of life.

In the undue concept of understanding as the only and fundamental presupposition of the democratic exercise the vote of the citizens, in an abstract way, which takes place every two or four years, we have delegated to some people, the majority without adequate capacity for analysis, the creation of legal norms, our individual concrete freedom.

That delegation of powers carried out in most cases, with honorable historical exceptions, to unknown persons who have never been evaluated in their capacity, ability, quality and suitability to exercise the position of the transcendent task of legislating, will necessarily have As a result, an unfortunate end, which will be the normative system or legal order in force in our country, which profoundly affects freedom, precisely what the Founding Fathers of our Nation wanted to prevent from happening.

Since ancient times, both in Greece-Athens- and in Rome, the foundation of our humanistic civilization, legal systems were created, based on freedom as a corollary of private law relations and where governments affirmed it annually, the task of the Normative creation was reserved for qualified citizens, be they jurisconsults or judges from the precedents, the law was created by custom and then materialized in general norms and individual norms through judicial sentences, hence the importance in determining the quality of who legislates and the absolute independence of who judges, since a large part of the future of a society is deposited, and the legal order is given certainty.

This synthesis mentioned is so important, because it shapes the reality of a society, freedom is a living right based on customs and not on the schematic of the law. As Ehrlich Eugen has said “today as in any past time the center of gravity of legal progress does not rest on legislation but on society itself.”

2 | Lack of certainty and security

The network of norms created in our legal order, which overlap or contradict each other, absolutely affect the certainty of the law, which must be understood as long-term certainty, generating constant legal uncertainty.

We can point this out by way of illustration in the following regulations: 1. Law 27260 that programmed an exemption for personal property, for the declaration of material property from abroad. Left aside by the law of solidarity and productive reactivation; 2. Exemptions granted to Industrial SMEs from the tax on Gross Income due to their subjective quality, Law 13,850, then taxed, denaturing said condition by the annual tax laws. 3. Lease Law 27,551 that prevents adequately rewarding the price of inflation in the owner’s contracts; 4. Home-office law 27,555; etc.

This true legislative jungle created by partisan, ideological or corporate needs has generated a plot that affects the economy in different phases, considering it as an activity more typical of public law than private law, affecting its autonomy and freedom, bases of its growth in the history of humanistic civilization, essentially separate from government.

Considering the economy as a public right implies the subordination of the peoples to the service of the holders of the public force, their whims and ambitions for domination.

This servitude prevents the achievement and exercise of authentic economies that really benefit man and the community, altering prices and generating inflation.

3 | Economics and public law

The deformation of the economic activity subject to public law or the State, implies that it places in its hands the contracting conditions of individuals altering their right to property and freedom, violating the postulates that from Roman law were agreed as a principle by the jurisconsults , inasmuch as the benefits that one man gave to another could not adversely affect him, as is currently the case.

The lack of control of public spending originates a permanent fiscal deficit, social aid initiatives without true control or uniqueness and work motivation; improper exchange control; the outdated and impractical labor laws, the creation of regressive taxes, the increase in the cost of services due to the tax burden that includes, the increase in the cost of fuels, due to the aforementioned tax burden, the excessive sale value of automobiles, trucks and machine tools due to the fiscal content that they include, the arbitrary control of exports and imports of goods and services, so we could continue with countless laws, decrees, resolutions and ordinances both at the national, provincial or municipal level, which affect in the way relentless autonomous economic life, flagrantly damaging the scope of concrete freedom of its members to exercise creativity, work, ultimately true progress and therefore the generation of wealth, which is and will always be the only way to combat poverty. decaying and poverty-generating inflation of our economy.

It is essential to react and become aware that we must oppose the arbitrary wills of those who direct legislative, judicial or union policies, substantially contrary to the natural rights of each person, such as their own work, health and property rights, among others.-

The synthesis between Freedom, Law and Economy must also be seen, necessarily, from the education of the people, insisting that they are not subjected to fatalism with permanent aid plans, instead of giving them certainty about their capabilities, of the effectiveness of the use of the themselves and the aptitude of their intelligences to find useful means.

The only horizon is the fatalism of the lack of material and cultural goods – material and spiritual poverty – with its well-known effects of inertia, passivity, the inhibition of efforts, with the aim of abandoning the dominion of despots. This is represented in Homer’s Odyssey by the Cyclopes, who were those who did not sow or work condemned to anthroprophagy. (Conf. Note on “Freedom, law and the economy in Classical Antiquity”, Manuel Río Univ. Córdoba Cuadernos de Historia 1991).

4 | Final words

In short, this work does not imply ignoring the role of the government regarding the economy in terms of the Common Good, according to the National Constitution. But in the current circumstances, the point of view that should not be lost and that, on the contrary, should be recovered, is that of the autonomy of the economy not subordinate to the state or public law, according to its legal nature, it touches freedom. reasonable and concrete of man and its social repercussion.

Therefore and concluding our thought coinciding with Professor B. Leoni when he stated: “I do not pretend that the legislation is entirely discarded. This has probably not happened in any country at any time. However, what I maintain is that legislation is truly incompatible with individual initiative and decision when it reaches a limit that contemporary society seems to have left behind long ago ”.

“Which I seriously suggest that those who value individual freedom reaffirm the place of the individual within the global legal system.” Quote ob. cited. page 27.

Specialist in tax and business law. Member of the Aguirre & González Zanoni study.

(**) Tax law specialist. Members of the Aguirre & González Zanoni study (La Plata. Bs. As.).

Note: with the collaboration of Nicanor Martín Aguirre.

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