He Gini coefficient, which measures the level of disparity between the income of the wealthiest and the most needyclimbed to 0.467, according to a report by INDEC on Tuesday. This was the highest figure since the first three months of 2008.
On the other hand, the survey on the evolution of income distribution showed that between January and March the richest decile received 15 times more money than the poorest decile, when in the same period last year that gap was 14.
In dialogue with this medium, the economist Juan Manuel Telechea attributed this sharp increase in inequality to the measures implemented by the Government of Javier Milei as soon as he took office.
The director of the Institute of Economy and Work of the Germán Abdala Foundation He pointed to the regressive impact of devaluation as one of the main factors since it always “generates a transfer from employees and retirees, whose income takes time to adjust, to companies and the agricultural sector.”
In parallel, the economist and IOMA advisor, Laura Testa, highlighted the role that the increase in unemployment had during the beginning of 2024, which went from 6.9% to 7.7% in one year.
The specialist stressed that the higher unemployment He hit women more since “in contexts of economic crisis even men begin to take jobs that are more feminized.” In parallel, she showed her concern for the increase in the portion of the population that has a job but seeks additional income given that what he has is not enough to make ends meet.
In the same sense, the owner of the consulting firm CP, Federico Pastrana, warned that the increase in unemployment had unequalizing effects since it affected more “those who have precarious and/or low-skilled jobs and those who have a lower educational level.”
Inflation pulverized the purchasing power of Argentines, but particularly of the poorest
The INDEC data reflected that 62.2% of the total population received some type of incomewhen a year ago that percentage was 62.6%. The average income was $369,085, 198% more than in 2023, against an inflation that in the same period of time was 273.5%.
The weight of non-labor income in the poorest households represented 62.6% of the totalwhich represented a significant increase compared to the 57.6% in the first quarter of 2023 and reflects the loss of jobs.
Regarding the employed population, an average income of $350,593. While the average income of the first four deciles of the population (the poorest) was $118,759, the average income of the middle stratum (deciles 5 to 8) was $329,826, and the income of deciles 9 and 10 was $855,881.
In terms of annual increases, the “lower class” had a nominal improvement of 176%, the “middle class” perceived an increase of 186% and for the “upper class” the adjustment was 230%.
Poverty in the first semester would reach a record in 20 years
The numbers show how Inflation pulverized the purchasing power of the entire population, but even more so in the sectors with fewer basic needs satisfied. It is also worth noting that in the period analyzed the costs of the basic food basket and the total basic basket, which measure the lines of indigence and poverty, registered annual increases of 302.3% and 287.6%, respectively.
“The drop in purchasing power is very strong: 24% on average and 33.5%! in decile 1. For reference, at the worst moment of the pandemic (2nd quarter 2020) purchasing power had fallen by 15% on average and 28% in the 1st decile,” explained Fundar’s Director of Productive Planning, Daniel Schteingart.
In this framework, the sociologist specialized in economic issues estimates that Poverty in the first half of the year (which INDEC will only publish in September) is expected to reach a 20-year high of around 55%.
Specifically, Testa raised the alarm regarding the jump that is taking place in the number of poor people whose income does not exceed the indigence line either. “The variation of the indigent poor went from 5.5 million to 8 million people; it is brutal”he sentenced.
Looking to the future, Telechea projects that, although the slowdown in inflation may contribute to the recovery of purchasing power, this will not be enough. to shorten the inequality gap, especially taking into account other regressive measures in distributional terms such as the reduction of the Personal Assets and Income Tax.
Pastrana said something similar. “In general, low inflation improves the indicators, but we are in an economic program with peculiar characteristics since: 1) the salary anchor is one of the components of the programtherefore the lower inflation is not reflected in a recovery of income, 2) the fiscal adjustment remains important and 3) economic recovery does not appear, so unemployment will continue with its unequalizing effects,” he said.
Source: Ambito
