Argentina plunged into recession as Milei’s government imposes drastic budget cuts • FRANCE 24

Since taking power as Argentina’s president in December of last year, the “anarcho-capitalist” Javier Milei has been applying a drastic austerity policy. Milei’s aim is to reduce sky-high inflation and cut Argentina’s fiscal deficit to zero. During his campaign, he brandished a chainsaw as a symbol of the budget cuts he intended to implement once he became president. He now has put his promises into practice: eliminating entire ministries, carrying out mass redundancies of civil servants and scrapping most subsidies. These sweeping budget cuts have greatly reduced the purchasing power of Argentinians and have plunged the country into recession. Our correspondents report.

Read more about this story in our article: https://f24.my/Agut.y

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23 comments

  1. Argentinians should be patient and persevere. This assumes Millei knows what he is doing, which I think he may. The value of money is resetting in the environment while all subsidies and wasteful spending is removed. Be patient Argentina. The US needs to be doing something similar. It could take the world ten years to get over the wasteful money printing of the last 30 years.

  2. You're telling me these people's jobs were so useless, they can't find a single employer who to pay them, and we're supposed to feel bad for them? Thank goodness they got laid off and stopped from collecting a check for not doing anything.

  4. This is a real world preview of what will happen if Trump and his Project 2025 come in. Yes, you will cut the size and cost of big government. But will the cost outweigh the reward? Will Argentina, with a smaller government, bounce back and become prosperous again? Or is it better to overpay for bloated government services in order to keep the ship afloat? Check this one again in summer 2025. By then we will know.

  7. Sadly..this is how real economies rebuild themselves
    The quick fix is taking debt and making everybody happy…but how long will that last?
    Today people forget one thing: Not all of the population is supposed to be in the middle class
    That everybody equal BS is what is spoiling this new entitled mentality.

  12. A degree in social science is not a high skill degree. These folks knew the government jobs were guaranteed income for life but fed off the real revenue generators. It sucks for him, but he should have went for a STEM degree.

  13. …Milei, numbers over people…not very smart
    …the workers always pay for the broken dishes, the rich keep being rich and even richer…if this is 'libertad', no thank you…

  15. Blame the last governments who were irresponsible and corrupt. Milei is doing the homework to fix a broken economy. Argentina was close to become another Venezuela, but the people decided to give him a chance and the results are already showing up. I would like to have another Milei in the USA and Brazil.

  16. 2024.11.01
    The economy has already recovered the level of activity that Kirchnerism left at the end of 2023. In April it hit bottom after falling -2.5% and then rebounded strongly in July and August, recovering the entire fall.

    In parallel, wholesale inflation went from 54% monthly in December to 2% monthly in September.

    In 8 months, hyperinflation was deactivated and the same level of economic activity is now in place as at the beginning of the administration.

    But in addition, the fiscal surplus was achieved, the commercial surplus, the energy surplus, the monetary emission was stopped to zero, the BCRA (Central Bank) was cleaned up, the public debt was reduced, the country risk was reduced, the gap between the official dollar and the free dollar was reduced, the inflationary tax and the PAIS tax were eliminated, inflation is already running at 2% per month,

    The structural reforms began (Ley Bases, Pacto de Mayo), the deregulation ministry was created and the RIGI was approved so that investment can start.

    The recovery of activity, credit to private individuals, salaries, and pensions has already begun.

    100% of imports are already paid and exchange regulations are removed every day.

    There is no longer price control, no import control, nor overdue tariffs.

    There are no more pickets in Buenos Aires, and crime has decreased in Rosario.

    Argentina returned to the world, to the West, to capitalism and to freedom.

    All in less than a year

  21. Javier is doing a fantastic job pulling Argentina out of decades of socialist mismanagement. There will be pain but there is much to gain!

Comments are closed.