A Bold Policy Push
Economy Minister Luis Caputo recently outlined the government’s initial policy push, which involves deep cuts to public spending, a sharp currency devaluation, and reduced energy and transport subsidies. These measures are expected to cause short-term inflation but aim to stabilize the economy in the long run.
While the government plans to double social spending for the poorest, many citizens are already struggling to make ends meet. Maria Cristina Coronel, a 63-year-old retiree, expresses her concerns, saying, “Everything keeps getting more expensive, and if salaries remain low while prices continue to rise, there won’t be enough to eat.”
A Race Against Time
To cope with the rising prices, many Argentines are scouring markets daily in search of the best deals. Prices are being updated frequently in stores to keep up with the relentless inflation. Currently, the country’s annual inflation rate stands at around 150%, with the poverty rate at 40% and rising.
Milei, in his inaugural address, warned that things will worsen before they get better, projecting monthly inflation rates of 20% to 40% through February. His message of “There’s no money” has become popularized and now appears on T-shirts sold on the streets.
Beatriz Nunez, a 62-year-old shopkeeper, narrates a grim reality, saying, “I’ve witnessed people buying just a quarter of a kilogram of ground beef or chicken breast. It’s something I’ve never seen before.” Despite the challenges, Ricardo Soccola, a merchant from the outskirts of Buenos Aires, sees an opportunity for positive change.
A Test of Political Support
Milei’s ambitious plans face further obstacles, as he lacks majority support in Congress. Many of his proposals will require approval from lawmakers, making his task even more difficult. However, despite this hurdle, there is hope that Milei’s vision for change will resonate with cash-strapped Argentines who yearn for a better future.