Poverty in Argentina exceeds 50% amid Milei's austerity measures

By Al Mayadeen English
Source: Agencies
28 Sep 2024 09:15

The far-right president has been tackling inflation through severe spending cuts, which have led to widespread poverty.

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Argentina's President Javier Milei walks on the floor of the New York Stock Exchange before ringing the opening bell in New York on September 23, 2024. (AP)

Argentina’s poverty rate has surged to nearly 53% in the first six months of President Javier Milei’s term, marking the highest level in two decades. The government reported 3.4 million people have fallen into poverty this year, reflecting the impact of Milei's far-right austerity measures.

Since assuming office in December, Milei has drastically reduced public spending to control chronic inflation and eliminate the budget deficit.

His government has frozen pensions, scaled back aid to soup kitchens, reduced welfare programs, and suspended all public works projects. Tens of thousands of public sector workers have been dismissed, while cuts to energy and transportation subsidies have led to rising costs and diminished purchasing power.

Kirsten Sehnbruch, a Latin America expert at the London School of Economics and Political Science, expressed shock at the unprecedented surge in poverty rates. "I've never seen such a dramatic increase," she said. "This new economic program is failing to protect the poor. The rise is absolutely devastating."

Milei’s austerity measures have been praised by markets, investors, and the IMF, as monthly inflation fell from 26% in December to 4% in June. However, annual inflation remains over 230%, among the highest in the world.

Maria Claudia Albornoz, a community worker from Santa Fe, said the government had “provoked a situation of desperation”. “We are feeling it in the fridge, empty and unplugged. Money is really worth absolutely nothing. We have three jobs and it is not enough,” she said.

Although Milei's popularity initially remained high, public support now seems to be fading. A survey published on Monday revealed a nearly 15% drop in September, marking the sharpest decline in his nine-month tenure.

Recent polls indicate that concerns about inflation have been overshadowed by growing fears of job losses and rising poverty.

Milei’s presidential spokesperson said the government had “inherited a disastrous situation” from previous left-leaning governments. “They left us on the brink of being a country with essentially all of its inhabitants poor,” said Manuel Adorni. “Any level of poverty is horrendous. We are doing everything, everything so that this situation changes.”