Good afternoon everyone. I am here before you to categorically state that enough. For years, our thinking has been distorted, presenting us with a false dilemma of Western politics.
Professor Jesús Huerta de Soto worked on this point of view. Efficiency is not complicated. It is based exclusively on the respect for private property and the entrepreneurial function. That is why the opposition between the dimensions of efficiency...
The perspective of dynamic analysis undoubtedly anticipated this situation with greater criticality. To change the connection that exists in dynamics, it was considered essential to seriously address efficient dynamics and the knowledge we have of what exists in reality.
Thus, to revert to what has been happening, from my role as president of this great nation, only the process of culture as a science and public policies... put in crude terms, when designing public policies, it is inadmissible from the point of view of ethics and morality to sacrifice justice on the altar of efficiency.
This slogan in favor of values is not only above economic efficiency, we know it is still much more above political utilitarianism. By setting aside ethical and moral values, policies are generated that are not only unjust, but lead to economic collapse, and also to a social collapse to the point that it could end up destroying the situation itself.
In 2024, I pointed out that the West was in danger. In turn, in my 2025 presentation, I created the agendas and policies that were being pushed by various international organizations and forums, more or less a whole set of social policies, in an elegant way to deceive people with noble and beautiful souls, with good intentions, but with the same catastrophic results.
That is why we must never forget the words of Thomas Sowell, who recognized the merit that it sounds very nice, but whose reality is that it always ends badly, horribly badly. Not to mention the continuous disasters caused by socialism during the 20th century, we see the aberrant damages caused in Venezuela, not only by an 80% drop in its GDP, but much worse, given the establishment of a bloody narcodictatorship whose terrorist tentacles reach Americans.
That is why, more than ever, facing the degradation of the West, it is necessary to resolve the defense of the model that was undertaken in the past, which must be based on an approach that was utilitarian. Today, the defense of the free enterprise capitalist system must be political and moral.
This is what Israel Kirzner points out. To this day, they do not deny the superiority of capitalism, they only question it. Not with its root, but with the products. Today, free enterprise capitalism is not the most productive, but rather... there is a conflict based on politics.
This implies that political policies must be discarded. Therefore, it indicates that we must urgently return to Greek philosophy, to Roman law, return to Jewish-Christian values, which are our salvation.
Part of human conflicts arise from a dissonant relationship between natural law and positive law. Natural law is the law that requires a universal sense for all, intrinsic to its essence and mentally immutable. On the other hand, positive law is what men create to follow. When the law is in consonance with natural law, its legal effect will be legitimate.
In this matter, two fundamental rights are recognized: the right to life and to liberty. Man is born alive and free, and has the right to preserve these attributes of nature. Furthermore, he has the right to have his fellow men respect him in order to seek his own fulfillment at the end of it all.
In parallel, we have acquired rights, which are neither natural nor inherent to the human being, but are earned by merit or obtained as a gift. In this way, from the fundamental right to liberty, the acquired right to private property is derived, and this is manifested in our ability to freely acquire goods through our work.
In turn, the right to property... of what is now appropriation... of God... which is added to the appropriation of discovery and of creation. Finally, these rights are complemented by the principle of non-aggression, which establishes that no human being has the right to exercise aggression of any kind against another human being. Not only physical aggression, but any type of coercion, and any other form of threat or use of force.
Liberalism, in accordance with respect for one's neighbor, is based on the defense of life, liberty, and property. Its institutions are private property, free enterprise, free trade, division of labor, and the spontaneously associated social order.
The question of whether the system is just... behind if the system is just, the basic premise constitutes the bases of the right of Western civilization. Justice, the constant and persistent intention to give to each one what corresponds to them. However, the sentence of Ulpian did not stop there, but continued by adding that the principle of law is to live honestly, without harming anyone, and giving each person what is theirs.
Therefore, from all this it follows that one of the characteristics of free enterprise capitalism is that it is an emergent institutional doctrine, which we have also proven. The first formulation regarding this was made with the argument of the invisible hand, achieving its own... the neoclassicals... invisible based on the first axiom of welfare economics: that competitive equilibrium is optimal.
However, this implied embracing a mathematical structure that abandoned forces to state intervention with the position of correcting false markets that do not exist. The proof that has been developed is based on property rights in line with the original appropriation principle. This principle not only proves optimality but also allows for intervention.
Any deviation from this set of rules implies, by definition, a redistribution of property titles, with a transfer of income from users and contractors of goods to non-users and non-contractors. Therefore, any deviation... relatively less original... resources will be known, and therefore there will be less production of new goods, fewer goods, fewer contracts and beneficial commerce.
This naturally implies greater... services... The postulate that the first user acquires the right of property ensures that productive efforts will be as high as possible at all times. In turn, the notion that only the physical integrity of the property and its value must be protected guarantees that every owner will make their greatest productive efforts to create value.
These efforts promote favorable conditions and prevent the change of these rules and productive resources. Note that by pivoting on private property, the excess demand derived from optimization allows for optimal esoteric outcomes that then come... it prevents a vehicle for a much more independent economy, production, and distribution, as if the choice between capitalism and communism were a result.
Therefore, having proven that the institutions of free enterprise capitalism are based on natural rights, the principle of original appropriation, and the principle of non-aggression, not only... but it is... to approve free enterprise capitalism... all these same properties in terms... already 380 years before... it is successful.
That is why Hayek deals with efficiency from two perspectives: on the one hand, a static vision, which is efficient in the management of available resources for the benefit of private property. And on the other hand, the second definition of efficiency, from the dynamic terrain, pointing out that efficiency implies increasing... it is about increasing the quantity available of entrepreneurial activity through speculation.
This last criterion of efficiency is to destroy an economy, because unlike a... as Robert Lucas Jr. defined... this refers to technology and initial resource endowments. In the dynamic sphere, both technology and initial endowments can vary, and they do so continuously. The creativity of... is...
A separate chapter is the institution of private property, and pivoting on it, the Austrian School, through Jesús Huerta de Soto, has demonstrated that socialism is a phantasmagoria, and the dependence between production and academia that led to social... for 150 years... to survive the tower.
In line with what was pointed out and in line with the second definition of economic theory, fourth, we have the division of labor, which was exemplified by the factory at the bottom. It is a productive mechanism of profit and productivity that manifests as increasing returns, and while its limit is delimited by the work, the size of the same is positively affected.
It is also worth noting that this process of resources is not infinite, whose limit clashes with the resource endowment. In second place, the accumulation of physical capital is crucial, and capital... putting the fundamental role of the capital market to achieve... human capital. Educational focus, development, and health to be able to access... and thirdly, we have technological progress, which means being able to produce a greater quantity of the same amount of resources or produce with a smaller amount of inputs.
Finally, the entrepreneurial function, in accordance... constitutes the main engine of the economic growth process, because while the three factors mentioned are important, the new production and level... is extremely precarious, where the entrepreneurial function does not focus on static efficiency, but rather on the growth of living standards.
In function of all this, what is truly important is to expand to the maximum the production possibility frontier. The capacity of an economy to use creativity... that dynamic efficiency is... human... capacity... of the environment that can consequence of... making it possible to have new ends... spontaneous... of...
On the other hand, this definition of dynamic efficiency proposed by Hayek... creative... naturally... entrepreneurial activity... institutions with which it developed. Both Douglass North and Hayek see a key function of institutions to reduce... institutions present as a set of rules devised by men that structure... these social institutions of human rights from a process of social interaction in a spontaneous way, without the design of a single person, which render... the framework that favors entrepreneurship and coordination.
Economic policy should identify and remove all judicial barriers that hinder the entrepreneurial and voluntary process. Given the determining influence of institutions on economic performance, important leaders... those societies that adhere to greater values... institutions... dynamically more efficient... greater prosperity. Thus, the fundamental ethical problem is conceived as the search for the best way to foster coordination and entrepreneurial creation.
Therefore, in the field of social ethics, the conclusion is reached that the conception of the human being as a creative, coordinated actor implies the automatic principle that every human being has the right to appropriate the results of entrepreneurial activity. That is, the private appropriation of the fruits of those who create and discover is a principle of natural law.
If the actor could not appropriate what he creates or discovers, then his capacity for the opportunity for profit and the incentive he has to carry out his actions would disappear. In short, the ethical principle we have just announced is the fundamental ethical basis of the entire market economy.
What we have just demonstrated is that free enterprise capitalism is not only just, but it is also efficient and, moreover, it is the one that generates the highest growth rate.
Therefore, given the conceptual framework of dynamic efficiency and efficiency and values, the absurdity of interest in its implementation in real life... beyond the enormous achievements we have shown during... a deficit of 15 points of GDP, inflation from 300% to 30%, reducing the country risk by 2,500 basis points, making the economy grow, while poverty dropped from 57% to 27%, carrying out policies based on ethical values.
And then, the case of the Ministry of Deregulation, the Ministry of Increasing Returns, is inspired by the evolution of GDP per capita since Christianity. It has the word of God. It emerges in 1800... and from there it multiplied by... in a context where the population multiplied by 10. This meant that extreme poverty went from 95% to 10%.
However, the existence of recent returns in the economy... concentrated, and that is where the dilemma of politics arises... of apparent efficiency... in the analysis... efficient implies the existence of non-conventions... it does not allow deriving service functions that yield a maximum demand... and assimilate it to a competitive case.
This is... clients with this economic growth. Do not look at the effects that regulation causes everywhere. The vision based on the ethical values of capitalism points out that if that position was reached by discovery, change, without violence... the principle of non-aggression is the motive that justifies the intervention. Interventions are a violation of property rights, so activating the benefits, the potential growth of the economy falls. Therefore, intervention and regulation are dynamically inefficient.
They must not be violent. That is why, since arriving at the administration in 2023, we have carried out, thanks to the work of Minister Federico, 13,500 structural reforms... to have universal... Make Argentina.
Therefore, this shows the questionable nature of the Pareto optimal analysis. Based on it, many consider it pertinent to regulate these constitutional structures, aspiring to... competitive... killing the returns. Our unintended collateral effect is killing growth. I know that along this same line we can address the issues of intelligence.
In this sense, our moment could be seen as the 21st-century version of the Smith family, meaning an enhancer of increasing returns, and thus greater growing well-being. Therefore, the most responsible thing they can do... regarding... guide those who create a better world. To put it more directly, politicians must stop bothering.
I want to point out that all the fears associated with... dystopian scenarios are a... response... the limit of increasing returns. And finally, we must not forget that the ongoing execution of these projects requires real financial inputs and resources, so the expansion will be limited by the initial endowments.
For those interested in the theoretical foundations of these arguments I am presenting today, Dr. Raiden uploaded to the networks the work we did in collaboration, which develops the theoretical foundations of this, that regulating... growth. That is, the omnipotence of the State, the regulations destroy property rights, and that kills increasing returns, and therefore growth is lower.
Lastly, linked to this phenomenal future that is coming, the role of Argentine human capital is of vital importance... to motivate... Finally, despite the popular criticisms of capitalism, free enterprise did not support... and after all, economic progress via the mechanism of the invisible hand arose from the moral sentiments of Adam Smith. In the modern era, it owes its existence to the virtues... of... meat.
This allows us to be sure that efficiency and efficient... are not only superior from a productive standpoint, but also... and therefore public policies must be guided by ethics and not by utilitarianism, whether economic or political, which always lead to unjust, populist, and impoverishing outcomes.
Therefore, I reaffirm what I said at the beginning of this conference. Machiavelli has returned, therefore, it is time to bury him. Moreover, given the deep link between morality and free markets, the latter make us better people, because thanks to dynamically efficient markets, at the same time we progress economically... private property... social... social attitudes... unthinkable for a society of its own.
Lastly, I want to leave you with a reflection from Pasaro, who writes about the moment Moses faces Pharaoh, symbol of the people of Israel. He tells him that if he did not free the Hebrew people, the last three plagues would arrive. In Pharaoh's case, the plague of locusts arrived, which signifies famine. Then the plague of darkness arrived, which signifies the loss of clarity for decision-making. Finally, the plague of the death of the firstborn, which is the manifestation of a society without liberty. The analogy with what is happening today in the West is tremendously clear.
It has been some time since the West, for some strange reason, has become the city of... the same place... the president of the West also... for having embraced the present of socialism in its most... version. In 2025... that the left moves... humanity... in the human... 2026 is the year in which I bring you good news.
The world has begun to reorder. The best proof of this is what is happening in America... of the ideas of freedom. America will be the beacon to save the West, and with that, you will pay your civilizational debt as a sign of gratitude. The Greek philosophy, the Roman law, and the Christian values. We have a better future, but the better future exists if we return to the roots of the West. That is, returning to the roots of freedom. May God bless the West. The force of the sky is with us.
[Applause]
And I kept to the time. Where is the...
