As President Milei battles fallout from his 48% pay raise, Argentinians still struggle to generate income

2 comments

1. Argentina’s President Javier Milei was [sworn into office at the end of 2023](https://www.bbc.co.uk/news/world-latin-america-67470549), but in the few months since then his presidency has polarized the country. 

   In February, his sweeping economic reform bill was rejected by Congress in a [major setback](https://www.cnbc.com/2024/02/07/argentina-milei-lashes-out-at-governors-after-key-reform-bill-setback.html) for the new President. Now, he’s been hit by a new scandal that undermines the current austerity drive. 

   Milei, a self-proclaimed anarcho-capitalist, was elected off the back of a campaign that promised to reduce state spending, achieve fiscal balance, and stop printing money to subsidize government expenditures in order to help Argentina’s struggling economy.

   According to an official statement from Milei’s office, “The inherited economic crisis and the current historical moment require public officials committed to the modernization, simplification and de-bureaucratization of the State”, however at the same time, his office oversaw a [48 percent presidential pay increase](https://www.ft.com/content/28d65d2f-ab79-43ca-8a53-b44ede259535) last month.  

   Milei said during a televised interview that he had ordered the dismissal of Labor Secretary Omar Yasin over the scandal, reportedly saying a salary increase for himself and top government officials was “an error that should not have been made.

   Opposition lawmakers, however, said the president’s own signature was used on a February decree that enabled the pay increase.

   The political fallout with government officials and the Argentinian public is still playing out, meanwhile inflation rates are yet to be controlled. Economists predict official inflation figures set to be released will show prices rose about 15 per cent on average in February and with [annual inflation at 200%](https://www.ft.com/content/dbdba9df-546f-4738-8488-7945bff4e715). 

   Given that the average salary in Argentina is [45,200 Argentine Peso (ARS) a month](https://www.timedoctor.com/blog/average-salary-in-argentina/), rising prices mean that poverty is growing in the country that once had one of the most prosperous global economies. 

2. How much money can a pay raise for a single person possibly be? How significant can that possibly be, compared to the widespread economic devastation wrought upon Argentina by Milei’s political enemies?

   Given the high inflation in Argentina, is such a large pay raise not warranted? Everyone else gets large pay raises too don’t they?

   Oh and the pay raise never happened.