Los Javier Millay’s orthodox economic adjustment measures They generated severe criticism from various political forums and observatories. They warn that advertisements try to establish the perception that high inflation is coming to justify the program with a strong supply impact. They promise that The blow to fixed income sectors will be brutal.
“He Government economic speech Does not contain serious analysis. “The propaganda is only to justify the adjustment already being made to avoid inflation,” notes the Economic and Labor Forum’s report.
“However Big economy There are many and serious imbalances, Milei diagnoses Exaggerates heredity Ridiculous. “The so-called ‘planted hyperinflation’ of 15 thousand percent per year is arbitrary compared to Rodriguez’s current monetary indicators and the hyperinflation of 1989,” Ocepp Observatory warns.
It contains Paper of the Economic and Labor Forum The measures announced in recent days are analyzed in detail. “The economy minister, Luis Caputo, implemented a 100 percent devaluation that adjusted for inflation, as well as transferring income to the financial sector and price makers,” he says.
“We face more economic reform than the fiscal year Therefore, it affects all popular sectors, regardless of whether they work in the private or public sector. He The plan sinks the economy “Due to the combined effect of disproportionate increase in prices and tariffs, it erodes people’s pockets and reduces public expenditure with a multiplier effect,” he adds.
“Milei justifies these decisions on the ‘heavy legacy’ he inherited from the outgoing government after electorally joining Macri. The failure of the previous Macrista government was obvious Along with its brutal debt, the fall in salaries and pensions, the closure of thousands of SMEs, the loss of jobs.
“The outgoing government – with inflation derived from pandemics, war and drought – had, of course, depressed levels of activity and improvement in employment due to the inflationary accord with the IMF,” it says. Speculative practices by large business sectors, volatility of price makers and poor currency management by the central bank.”
For his part, the Monitoring report Osep The legacy of the Milei government’s corrective measures highlights repeated statistics from other moments in history, the root of the problem being a lack of funding. “The Notices do not constitute a confirmation scheme, But a classic policy of adjustment and devaluation with dramatic social consequences,” he says.
He adds that the results expected by the government are easy to list: “Plan A: That Decline in personal income and activity As happened between April and May 1976, inflation begins to decline rapidly starting in January or February. Plan B: Reach March with a sharp drop in real wages; Low fiscal deficit and more importantly, some level of reserve accumulation. Under these conditions, initiate a stabilization program.
