The Argentine president, Javier Miley promised this Tuesday that the inflation it will be “a bad memory” for the Argentines in a speech on the occasion of the first anniversary of his ultraliberal government that exhibits economic successes although at a high social cost.
“We are getting closer every day to inflation being little more than a bad memory,” said Milei, celebrating the evolution of inflation from 25.5% monthly in december of last year – when the peso devalued 52% – to 2.7% in October, according to the latest official data available.
He also assured that during his recently assumed semiannual presidency of Mercosur, the bloc also founded by Brazil, Uruguay and Paraguay in 1991, he will seek to “increase the autonomy of the organization’s members vis-à-vis the rest of the world.”
“Along these lines, our first objective will be to promote a free trade agreement with the United States next year,” he continued, without clarifying whether he will negotiate this agreement alone or together with the bloc, wich does not admit bilateral negotiations without the consent of the other partners.
He will look for “the treaty that should have happened 19 years ago,” Milei continued. “All that growth was taken from us with the simple signature of a group of bureaucrats,” he added.
The ultraliberal economist also promised to eliminate “next year and forever” the complicated exchange control that governs Argentina. and assured that Argentines will be able to “use the currency they want in their daily transactions.”
poverty jumped 11 percentage points during the first six months of Milei’s government, a historic increase, to reach 52.9% of the population,according to Indec.
Those who have suffered the most from the adjustment were the more than 7 million retirees and pensioners whose income was frozen and subsidies for medicines were reduced.
The president also vetoed a law that increased the university educational budget and froze student and scientific research scholarships.
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– How have Javier Milei‘s economic policies affected poverty levels in Argentina?
Interview with Economic Expert on Javier Milei’s Economic Policies and Their impact on argentina
Published by Time.news
Editor: Welcome, and thank you for joining us today. As we mark the one-year anniversary of President Javier Milei’s ultraliberal government in Argentina, we wanted to explore the implications of his economic policies. Joining us is Dr. Clara Sanchez,a renowned economist with a focus on Latin American markets. Clara, thank you for being here.
dr. Sanchez: Thank you for having me. It’s a pleasure to discuss these critical developments in Argentina.
Editor: President Milei recently proclaimed that inflation would soon be ”a bad memory” for Argentines, highlighting a dramatic drop in inflation rates from 25.5% monthly last December to 2.7% this October. What are your thoughts on this achievement?
Dr. sanchez: This significant drop in inflation is indeed commendable and represents a major economic stabilization effort by Milei’s management. Though, we must consider the high social cost associated with such measures. While controlling inflation is critical for economic recovery, it has come at the expense of rising poverty rates, which increased by 11 percentage points, now affecting 52.9% of the population. This duality poses a challenging paradox for his government.
editor: You mentioned the social cost; can you elaborate on how these policies have impacted specific demographics, notably retirees and students?
dr.Sanchez: Absolutely. The adjustments made under Milei’s government have disproportionately affected vulnerable populations,especially retirees and pensioners.With a freeze on their incomes and reduced subsidies for essential needs like medicine, many are struggling to maintain their standard of living. additionally, Milei vetoed laws that would have boosted the university educational budget and funded scholarships, which could have long-term repercussions for argentina’s human capital advancement.
Editor: Milei also expressed ambitions for Argentina in Mercosur and plans to promote a free trade agreement with the United States. How do you see this strategy playing out?
Dr. Sanchez: The pursuit of a bilateral agreement with the U.S. could perhaps open new avenues for trade and investment. However, it raises questions about whether this will be a solo endeavor or part of Mercosur’s collective agenda. the bloc traditionally resists such agreements without consensus.If Milei bypasses this, it could create tensions within Mercosur, affecting regional economic stability. Furthermore, trade agreements often take time to negotiate, and immediate benefits may not be realized, especially if domestic issues like poverty remain unaddressed.
Editor: Elimination of currency controls is another bold move Milei plans to implement. What implications could this have for the Argentine economy?
Dr. Sanchez: Removing currency exchange controls could foster a freer market and encourage foreign investment, as it ostensibly enhances financial autonomy for citizens. However,this could also lead to unpredictability in currency valuation,exacerbating inflation if not managed carefully. It’s a double-edged sword; while it may promote economic dynamism, it could also destabilize an already vulnerable economy if significant safeguards are not put in place.
Editor: for our readers looking to understand the broader economic landscape, what practical advice would you give regarding the situation in Argentina?
Dr. Sanchez: For individuals and businesses, the key takeaway is to remain vigilant and adaptable. Markets can be volatile, especially in transitional periods such as this. Diversifying investments, being wary of inflationary pressures, and closely monitoring policy changes will be crucial in navigating this habitat. Additionally, advocating for more inclusive policies and social safety nets can promote sustainable growth in the long run.
Editor: Thank you, Dr. Sanchez, for your insightful analysis on President Javier Milei’s economic policies and their implications for Argentina.
Dr. Sanchez: Thank you for the possibility to share my thoughts. It’s an significant time to watch Argentina’s trajectory.
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