Argentina is facing a tough situation, as poverty has surged to over 52% of the population during the first half of 2024. This troubling data was reported by the national statistics agency, INDEC, and shows a sharp rise in poverty compared to the previous year. This comes at a time when Argentina’s president, Javier Milei, has been implementing strict austerity measures to tackle the country’s economic crisis.
President Milei, who describes himself as an “anarcho-capitalist,” introduced a series of cuts to reduce Argentina’s budget deficit. He aimed to get rid of the country’s massive inflation and spending issues, but these measures have had significant consequences for the population. Public subsidies for transport, fuel, and energy have been slashed, and thousands of civil servants have lost their jobs as part of his plan.
While Milei’s austerity program helped lower monthly inflation to 4% in July 2024, down from much higher rates, the overall situation remains grim. Argentina still suffers from one of the highest inflation rates in the world, with an annual figure of 263.4%. The president also devalued the peso by more than 50% shortly after taking office, which resulted in a steep rise in prices and made life even harder for the poor and working class.
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One of the few successes of Milei’s government is that Argentina saw its first budget surplus in almost 12 years. However, critics argue that this achievement has come at a huge cost, as poverty has skyrocketed. Nearly 16 million people now live in poverty, with one in five considered indigent (extremely poor). Many believe the president’s policies are worsening the situation for Argentina’s most vulnerable citizens, leaving them to struggle in the face of soaring inflation and job losses.
In summary, while Milei’s economic reforms aim to fix long-term financial issues, they have placed a heavy burden on Argentina’s population, especially the poor. The question remains whether these austerity measures will lead to any lasting improvements, or whether the social costs will prove too high.