The Fiscal Rule That Hides the Real Problem

Debt limits divert attention while the state absorbs citizens’ savings and labour

It takes a prodigious imagination to call what this system does a “fiscal rule”. It is, in fact, a mechanism of mass distraction.
A debt limit was invented so that no one would notice that the problem is not borrowing, but the insatiable size of a state that believes it owns the nation’s wealth.
And then they wonder why the economy fails to take off!
The state does not generate a single peso, however much they may try to persuade us otherwise. Everything the state spends comes out of someone’s pocket, comes out of private capital formation, comes from the effort of those who work every day.
Worst of all, when money belongs to everyone, it ends up belonging to no one.
That is the great sin of statism.
Because resources are managed under the umbrella of GDP, as though it were an amorphous mass that could be stretched like chewing gum, there is never any accountability.
Now, let us think for a moment.
If that money, instead of passing through the state blender, went into individual accounts, if it became genuine investment in infrastructure projects, technology and everything Uruguay needs in order to modernise, the story would be very different!
But of course, those who live off the state panic at the prospect.
Because if citizens begin to see, thanks to technology, autonomous agents and blockchain transparency, how their money is spent, the game is over. Individual capitalisation is not merely a pensions issue; it is the ultimate instrument of citizen oversight.
If the state has to borrow, it should do so on its own feet, not on the backs of people’s retirement savings. Enough of using other people’s savings to plug black holes!

The real fiscal limit
Savings under citizen control
Technology to audit power

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