The new Argentine government led by Javier Miley, has taken a radical turn in its economic policies, challenging its historical rhetoric. Six years ago, the same economy minister, now under Millay, He warned of the dangers of drastic measures, highlighting the negative impact on consumption, investment and growth. However, now it embraces a 50% devaluation, creating uncertainty and fear among people.
The announced demonetisation makes sense of it 10 dollars is worth 8,000 pesos, which translates into a loss of purchasing power for citizens, as prices will be calculated with the new rate, while salaries will remain in the devalued peso. The move hits hard in a country with 40% poverty, which is already facing significant increases in basic products.
Another blow to Argentina’s pocket Reducing energy and transport subsidies. This results in a direct increase in the prices of water, electricity, petrol and public transport, further impacting the household economy. Furthermore, the decision not to renew state labor contracts of less than one year and the suspension of tenders for public works portends a situation of high unemployment and less services for citizens.
in between The promise of hard times and the hope of long-term improvements, unions have launched protests calling the measures “social murder”. Economic uncertainty adds to the anxiety of the people, who are already planning to demonstrate against the government’s decisions on December 20.
Who will lead these activities? Luis Caputo, Miley’s economy minister… was also Mauricio Macri’s minister for two years. Later, in 2017, he supported public works and criticized some ‘shock’ measures.
“If we take ‘shock’ measures, they will inevitably lead to negative growth in consumption, investment and growth. It will be a disaster and very difficult for all people.“, he said. With the arrival of Miley’s chainsaw, Kabuto’s vision has taken a 180-degree turn.
