Argentina under Milei: Financial surplus at the expense of the population's prosperity? | DW News

Key Concepts:

• Austerity measures
• Inflation reduction
• Social spending cuts
• Poverty increase
• General strike
• International Monetary Fund (IMF) bailout
• Fiscal surplus
• Deregulation
• Social justice vs. Liberty
• Retiree pensions

Protests Against Austerity Measures

Demonstrators in Argentina have been protesting against austerity measures implemented by President Javier Milei. These protests occurred before a planned 24-hour general strike.

Milei's Economic Policies

Since taking office in 2023, Milei has focused on reducing Argentina's high inflation rate by cutting subsidies and social spending. While he has achieved some success in curbing inflation, poverty has increased, particularly among the elderly.

Impact on Retirees

Unions have joined weekly protests organized by retirees, who are among the most affected by Milei's cuts. One retiree stated their pension is 270,000 pesos, which is insufficient to cover basic needs like meat, utilities, or medication, including medication needed after prostate cancer surgery. The retiree believes the government is targeting retirees' salaries to achieve a fiscal surplus.

Milei's Meeting with Paraguayan President

Milei met with the President of Paraguay, where he stated that their shared commitment to deregulation and fiscal surplus would "be an example for South America." He argued that prosperity is achieved through "the ideas of liberty," not through "social justice," which he defined as the "forced redistribution of wealth promoted by collectivists."

Inflation Reduction and IMF Bailout

Argentina has experienced one of the world's highest inflation rates in recent years. Milei has managed to reduce it significantly since 2023. He is seeking a $20 billion bailout from the IMF to support his reforms.

Criticism of Austerity Measures

Critics argue that Milei's "chainsaw austerity measures" have worsened social inequality and made everyday life more difficult for many Argentinians.

General Strike

The protests set the stage for a 24-hour nationwide general strike against Milei, starting at midnight.

Synthesis/Conclusion:

The protests in Argentina reflect public dissatisfaction with President Milei's austerity measures, which aim to reduce inflation but have led to increased poverty and hardship, especially for retirees. Milei defends his policies as necessary for long-term prosperity through deregulation and fiscal surplus, contrasting them with social justice approaches. The upcoming general strike highlights the widespread opposition to his economic reforms, even as he seeks an IMF bailout to further stabilize the economy.