2023-05-22 14:57:50
The world capitalist system is undergoing a great crisis, greater than in the 1930s. Inflation, lack of productive investment, financial speculation, wars like in Ukraine, unemployment, forced migration, environmental destruction, etc. And our country, as a semi-colony, is no stranger to this economic tragedy.
By Guillote – PSTU Argentina
In Argentina, inflation, devaluations and unpayable debts continue to increase poverty and produce a large transfer of wealth from the workers and the people to the national bourgeoisies and multinationals that control the economy, solely based on their profits. At the same time, there are productive symptoms that already alert strong casualties.
Government variables show that after the pandemic, in 2021, the economy had rebounded by 11% overall, as in other countries. But currently the INDEC Monthly Estimator of Economic Activity (EMAE) shows that in 2022 it began to decrease. For example, the last quarter registered a drop of 2.6% that continues this year.
Fishing fell -11.1%, industry -1.3%, transport and communications -0.3%, livestock -0.07%, commerce -0.5%, financial intermediation -2.7%. Only mining grew 11.1% due to extractivist concessions and hotels 8.6% due to tourism against the cost of the dollar.
For the World Bank in 2023 growth will be 0.0%, and in 2024 it would increase by only 2%. The IMF, supervisor of our economy, forecasts only 0.2% this year and a drop in Gross Domestic Product (GDP) of 3.5%.
Greater unpayable debt
The Central State Debt exceeds US$ 400,000 million, that of the Central Bank with Leliqs reaches US$ 70,000.- million. Adding that of the state agencies and the provinces exceeds US$ 500,000.- And due to the tremendous inflation, positive interest is granted at the behest of the IMF. A speculative party of vulture investors, banks and finance companies.
There is a declining trade balance in the face of the world crisis, to which are added the drought, the millions in interest on Internal and External Debts and the flight abroad of the bosses’ profits. The reserves of the Central Bank almost do not exist, it issues more banknotes and takes money from the banks with the Leliqs at rates of 91%.
The Government despairs in an electoral year and must apply greater and demanding (recessive) adjustments agreed with the IMF to generate reserves, in order to pay the hateful and fraudulent External Debt. The IMF loan to Macri is not being paid, the agency refinances every three months charging succulent interest.
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The unstoppable prices
The main factors are the aforementioned bleeding of the payment of interest on unpayable debts, the remarking of large and medium-sized producers of food, industrial inputs and laboratories, commercial intermediation, the removal of subsidies giving free rein to companies for increases in energy and services. Many employers purchase imported inputs at the official dollar of $230.- but apply the illegal “blue” dollar to the costs, obtaining fabulous profits. As in cereals and meats that apply the international price.
Inflation is not generated by salary increases, always below inflation. An inflation that suits the Government to collect more taxes such as VAT, check, Gross Income, etc., intended to dispose of resources and pay the Debt scam.
Our capitalist economy is stagnant and on the verge of a recession with terrible consequences due to the drop in consumption and the prospect of rising unemployment with the possible effect of making us desperate to keep a job, even if it is miserable wages. And always with the burden of having to reduce the Fiscal Deficit, with less public spending on works, services, salaries and assets, required by the IMF.
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Devaluation and dollarization is more adjustment
The super minister of Economy, Sergio Massa, often travels to the US for more loans, promising to pay the unpayable. He will try to comply with the looting of the IMF and benefits to the investments of the large multinationals of energy and lithium, for which they grant derisory royalties of 3%.
Meanwhile, capitalist sectors press for devaluation, trying to unify the official dollar ($224.-) with the “blue” ($470), as with Menem and Cavallo. Alternative with tremendous consequences for the workers and the people as in 2001. Greater price increases, with salaries and pensions reduced to a paltry amount of dollars, as is the trend in Latin America.
Like any bourgeois capitalist government, Fernández is incapable of taking measures to protect workers, such as a National Board of Meats and Cereals that prioritizes the internal market at affordable prices before exporting, a State Exchange Control, a nationalization of the financial system, to stabilize mining extractions protecting the environment, and to really import what is necessary. And an urgent need: stop paying the bleeding of the Internal and External Public Debt. This government does not do it because these insufficient partial measures could not be sustained if they are not deepened with truly socialist actions controlled by a government of the workers and the people.
Article taken from Avanzada Socialista 13 of the PSTU – Argentina DOWNLOAD
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