The Catholic University of Argentina said the country’s poverty rate reached 57.4 percent in January, the highest figure in 20 years, the economic newspaper said. Ambito Recently reported.
The study estimates that there will be 27 million poor Argentines, of whom 7 million will be classified as poor.
Start by studying published According to an Argentine newspaper, the poverty rate rose dramatically from 49.5 in December to 57.4 in January. This is primarily a result of Argentina’s inflation rate and the devaluation of the Argentine peso, and the subsequent rise in prices of basic goods such as food, services, and services. Other non-food products.
President Javier Millay’s government has implemented dramatic policies as part of a broader “shock therapy” plan to repair Argentina’s economy after nearly two decades of socialist rule. devaluation The peso will be revalued in December to bring the official exchange value closer to the market rate.
Prior to President Millei’s inauguration, Argentina maintained a highly complex multi-level currency management and exchange system, employing different and sometimes very specific exchange rates to maintain an artificially strong peso. Ta. This system created a large gap between the “official” rate and the parallel rate that existed outside the exchange control system.
“Two simulation exercises were carried out to contemplate the deterioration of the social situation. The first is the level of destitution and poverty in the context of the increase in the basket and the renewal of labor and non-labor income in December 2023. ”, the study explained. “The second exercise recreates the basket cost and labor and non-labor income situation for households in January 2024.”
Ms Millais responded to the inquiry on social media over the weekend, blaming the situation as a legacy of the “caste model”. This was a term he often used to describe elitist socialist governments run by a small number of “high castes.”
“The true legacy of the caste model: 6 out of 10 Argentines are poor. The destruction of the past 100 years is unprecedented in Western history,” Millay’s message said. “Politicians need to understand that people voted for change and we will give our lives to make it happen.”
“We’re not here to play the mediocre game of politics. We’re here to change the country,” he continued, concluding with his now widely famous catchphrase, “Long live freedom, motherfuckers!” Ta.
La verdadera herencia del model de la casta: 6 de cada 10 argentina son pobres. Destroy the most important elements of Occidente’s history.
Los politicos tinen que la gente voto un cambio et que nosotros vamos a dal la vida para revallo… https://t.co/pdoAEZqBjN
— Javier Milei (@JMilei) February 18, 2024
The study found that poverty rates rose dramatically in January, with the South American nation achieving its first monthly poverty rate due to austerity measures by Mr Millay and Argentina’s Economy Minister Luis Caputo. surplus That month’s spending was the first in 12 years, and the first time since August 2012 that Argentina spent less than it generated.
Millay previously told local media that as a result of Argentina’s unstable economy, the country would have to experience the “most difficult” economic period in March-April. Millais then predicted a “rebound” from his own policies.
“It’s a sort of ‘V’ or first stretch where you fall, and the toughest time is around March and April, when you hit the bottom and then you start rebounding and you lift the bottom up. is” [currency exchange control restrictions]If we do that, the economy will move forward,” Millais said. explained In an interview with local people Radio Rivadavia last week.
One of Millay’s main economic goals was to “dollarize” Argentina. This would mean replacing the flagging Argentine peso with the US dollar as legal tender, similar to what other countries in the region, such as El Salvador, have done with great success in the past. And Ecuador.
Minister of Economy Luis Caputo explained On Wednesday night, he said dollarization was the goal and would occur when conditions were “optimal”, adding that further devaluation was “not in our plans”.
“We will see a recovery in the last quarter of this year,” Caputo said. “The faster we bring inflation down, the faster it will recover. We need to be as disciplined as possible to keep inflation in check.
“The president always said it was going to be tough. If we could come out of a decades-long disaster in two months, it would be easy,” he continued. “We are doing the impossible to minimize the burden of this transition. The alternative was hyperinflation.”
Argentina National Institute of Statistics and Census measured The inflation rate in January was 20.6%, down from 25.5% in December, bringing the cumulative total over the past year to 254.2%.
Christian K. Caruso is a Venezuelan writer who chronicles life under socialism. You can follow him on Twitter here.
