“Welcome Hunger Games“said television presenter Jorge Rial, but he wasn’t talking about the extreme survival movie. The story came out after it became known andI economic shock plan The far-right government in Argentina peso devaluationnational currency, 118%, Strong restriction on public spending, removal of subsidies and opening imports. In a deeply polarized country, views of President Javier Milei’s maximum austerity program have drawn applause from bankers and businessmen, skepticism from experts and dismissal from a diverse and confused opposition. According to Juan Grabois of the Excluded Workers Movement, Economy Minister Luis Caputo announced: “a social murder without hesitation like a psychopath “They are about to slaughter their defenseless victims.”
Caputo, Former director of JP Morgan and Deutsche Bank, and Governor of the Government Central Bank Mauricio Macri when there is a busy situation capital flight It was obtained from the 45,000 million loan provided by. International Monetary Fund (IMF)Argentines have warned that inflation will be at best 20% per month for a significant part of 2024, a situation that has been subject to severe criticism by the same organisation, and that the state will no longer be able to control the rise in food prices. usage or transportation rates. “Let’s get the bikes. Let’s save energy. To share the rent“, suggested María Eugenia Talerico, leader of the traditional right.
The first hours after Caputo’s statements created a stir earthquake. Price dollar offered on the black market 34% higher than the new official value of the currency. Supermarkets, warehouses and grocers felt the impact immediately and a mad race began to rebrand labels. Argentina exports meat, corn and wheat. Any depreciation in the currency is reflected in the basic basket consumed by the population. This affects people on fixed income, especially pensioners, and around six million poor people receiving government benefits.
The bitterest drink and the missing ones
Caputo and Milei warned that poverty would increase in the first months and is now close to 45%. The question some analysts are asking is: If it reaches 57%, as it did in 2002, After the collapse of the neoliberal economic model, the economy fell by 10%. However, both the president and the minister assured that the implemented alternative is the only alternative that will solve the fiscal deficit problem. “To be clear, middle class, they threw him into poverty “With a click that creates the illusion that there is no other possible path,” Grabois said. The Argentine labor union (CGT), although rejecting the measures, said: “We will be cautious.”
Presidential spokesman Manuel Adorni also announced that the Government will prune the pension system. Meanwhile, wages will not keep up with inflation, which will close at 160 percent in 12 months this year. The Government of La Libertad Avanza (LLA) is also preparing another set of measures, including: repeal of income tax abolition a situation that was decided by the previous administration and benefited the middle class in particular. In this way, it will try to deliver more raises and fulfill commitments to greatly reduce the fiscal deficit. This road map was enthusiastically welcomed by the International Monetary Fund (IMF).
echoes
Gabriel Rubinstein, Deputy Minister of Economy in the Peronist Government, gave the following assurance: The cost of the adjustment is paid by “the people, not political caste”Just like Milei said. “The announcement and what is yet to come are caused by sloppiness, inconsistency and improvisationCarlos Melconian, who was appointed Minister of Economy after the right-wing party won the elections, said “everything is as it is”. Patricia Bullrich, He was appointed Minister of Security by the President.
“Society is the author of an unprecedented political revolution It is in the last 40 years of democracy that Milei was its brightest variant. The majority of ordinary people seem to share the view that the main culprit of the crisis is the fiscal deficit and that it is time to make serious cuts in state spending, which the Kirchners have doubled as a share of public spending. “GDP,” said the newspaper’s columnist, Joaquín Morales Solá. People. “The question to ask is whether this theory will be supported in practice when regulation reaches the pockets of ordinary people.”
Juan Guarino, from the newspaper financial area while wondering about their so-called “unexplained intentions”chainsaw plan” Caputo offered: “With so many factors pushing for hyperinflation, what elements has the Government considered to counter this wave that will affect middle and lower class households? In fact, the following doubt remains: But what if a burst of inflation is sought, which will contribute to the liquidation of public expenditures? What about the loan from the Central Bank?” This verb is on the lips of many economists: inflation turns everything into dust, salaries, state budgets, debts.