Argentina’s Poverty Rate Soars Under President Milei’s Austerity Measures
Argentina’s poverty rate has reached an alarming 53% in the first half of this year, according to official data released on Thursday. This sharp increase from 41.7% at the end of last year highlights the severe impact of President Javier Milei’s tough austerity measures on the country’s population.
Key Points:
- The poverty rate has more than doubled from 26% in just seven years, reflecting the ongoing economic crises in Argentina.
- Milei’s spending cuts, aimed at addressing the fiscal deficit, have led to major short-term hardships for the people, with job losses and decreased living standards.
- The country is currently in a deep recession with inflation in triple digits, despite some signs of economic improvement.
Irma Casal, a 53-year-old worker in Buenos Aires, shared her struggles, stating, “Since this government came to power, jobs have dropped away. We work twice as hard for less and we have to keep going.”
Analysis of the Situation:
The austerity measures implemented by President Milei have been praised by markets and investors for addressing the state’s financial challenges. However, these actions have also plunged Argentina into a recession, although recent indicators suggest a potential stabilization of the economy.
The Catholic University of Argentina’s observatory estimated the poverty rate to have peaked at 55.5% in the first quarter before slightly improving to 49.4% in the second quarter, averaging at 52% for the first half of the year.
Agustin Salvia, director of the UCA’s Observatory, acknowledged the initial impact of Milei’s policies but noted recent signs of improvement. He emphasized the need to address the ongoing challenges faced by the population.
Government Response:
Argentina’s government has implemented measures such as cutting welfare programs and reducing support to soup kitchens while expanding key welfare initiatives like the Universal Child Allowance and Food Card program to provide direct assistance to families.
Presidential spokesman Manuel Adorni expressed the government’s commitment to addressing the issue, stating, “Any level of poverty is horrendous. We are doing everything so that this situation changes.”
Overall, the data reveals the significant impact of austerity measures on Argentina’s poverty rate and the ongoing challenges faced by its population. While efforts are being made to mitigate the situation, the long-term effects of these policies remain to be seen.