Argentina’s new president Javier Milei is slashing government spending. But some people say his cuts are hurting regular Argentines.
The Key Points:
- Milei cut subsidies, salariesFF, and pensions to reduce debt
- He says the political class, not people, will pay for austerity
- But critics argue ordinary Argentines are struggling from the cuts
- Milei promises the austerity will fix Argentina’s economy long-term
Why are some Argentines upset with their new president’s policies?
Milei’s Controversial Cuts
President Javier Milei took office promising major spending cuts. He slashed subsidies, department budgets, and the value of Argentina’s currency. His goal is to reduce debt and inflation after years of overspending.
Milei argues previous policies caused excessive money printing that fueled 7,500% annual inflation. He says drastic austerity is needed to stabilize Argentina’s economy.
However, many regular Argentines complain the cuts have made life much harder. Pensions and salaries were reduced, so people have less money. Basic goods like milk have doubled in price since Milei took over.
The Political Class Paying?
Milei insists the biggest burden falls on the “political corporation” of government officials and departments, not citizens. He says pension cuts amount to just 0.4% of savings, while 90% came from cutting the “political class.”
But critics, including older Argentines on fixed incomes, tearfully argue it’s a lie that only politicians suffer. Lower pensions and rising prices make it extremely difficult to afford basic necessities.
When asked what to tell struggling citizens, Milei encouraged waiting a bit longer. He claims salaries already started outpacing inflation last month, with more raises coming as prices stabilize.
Future Outlook
The president acknowledges no economic “miracles” exist, calling populist money-printing policies disastrous. He states direct austerity is harder initially but necessary to escape prior crises.
Milei believes Argentina’s recovery has already begun, projecting inflation will continue falling over “a year or two” as salaries adjust upwards. In his view, tough choices now prevent mass poverty levels later.
Will Milei’s controversial cuts ultimately rescue Argentina’s long-troubled economy? Only time will tell for citizens enduring hardship.
The screenshot is taken from – bbc.com
