“The highly inflationary regimes and hyperinflationary peaks in Argentina began in 1976 with the last civil-military dictatorship. At that time the era of gigantic external debt, large-scale capital flight and the introduction and expansion of the dollar in different areas of the local economy,” the document began.
In the letter they highlighted the consequences of the hyperinflation that occurred in the period 1989-1991 and its impact on salaries and retirements.
“The proposal at that time was convertibility, whereby one peso would be equivalent to one dollar. To have less pressure on the exchange rate and minimize the dollars necessary to carry it out, savings were seized through the “Bonex Plan” and they privatized public companies, like YPF, to have more dollars. When there were no longer public companies to sell, more external debt”.
The solution was not dollarization, as some sectors proposed, but the recovery of the national currency and credit, with growth, salary recomposition and macroeconomic order,” the letter stated.
At the same time they highlighted the Government of Néstor and Cristina Kirchner cwith the creation of companies, jobs, salary increases, retirements and a period of debt reduction “that was later reversed by Macri.”
“The limitation generated by the external debt with the IMF that left Macri has greatly conditioned the possibilities of growing of the economy during these years. We are aware that it has not yet been possible to reverse the reduction in real wages during the Macri years, but also that the establishment of the dollar as legal tender, as Milei proposes, or the consolidation of a bimonetary economy, would previously imply a megadevaluation that would pulverize salaries and pensions, and then deindustrialize the country, expanding unemployment and poverty.”
“We support a inclusive development plan, that allows the generation of employment, an income distribution that grants opportunities to all and a new agreement with the IMF that is consistent and sustainable, as Sergio Massa proposes and began to partially reflect in these hard and destabilizing months. November 19, 2023 Two country models are at stake. The only possible path at this stage to begin to solve Argentina’s problems is through broad national unity with Sergio Massa as president of the Nation,” he concluded.