An interesting exercise results from comparing the evolution of economic and industrial growth during an equivalent period during the current administration and that of the government of Mauricio Macri. Between the first two months of 2022 and the same period of 2020 (health pandemic in between) the activity grew by 4.7% and the industry did so to a greater extent, 7%. On the contrary, also considering the first two months, but between 2016 and 2018 (beginning of the neoliberal pandemic and consequences of the macrista management), the activity also grew by 4.7%, while the industry was stagnant with only 0.4% of increase. Although it is a measurement that takes specific periods, it indicates the effects on the manufacturing sector of each management: if we were to take other periods, the data would be similar. There are no secrets, these are different policies, different government objectives. These policies are reflected in current industrial employment data: some 29,000 jobs were created in the last year, the highest number since the beginning of 2018.
A situation that also occurs in the activity in general: According to data from the Ministry of Productive Development, between August 2021 and February 2022, 119,000 people accessed a registered job in the private sector, which is equivalent to a monthly average of about 20,000 new registered private jobs. Formal employment has not recovered at this speed since 2011, mainly driven by industry, as we have already pointed out.
As I have repeatedly mentioned, much remains to be done to reduce informality. There is a significant proportion of workers who, in addition to lacking the stability and labor rights that registered workers have, receive wages that are generally far behind inflation. The recent announcement of an “income booster” for $18,000 that the National Government will grant to this sector constitutes an important aid. In the same sense, it is worth mentioning the $12,000 to retirees that are added to the $6,000 granted in April. However, we are aware that these measures do not solve the underlying problems.
In the analysis of the economic and social situation, it is essential to take into account the data on public spending and its distributive effects. According to the Congressional Budget Office (OPC), in the first quarter of the year real public spending (discounting inflation) grew 14.6%. In the disaggregation, the strong commitment to the most vulnerable sectors is observed, since, if we consider the variations in real terms, there was an increase of 5.7% in retirement and pension items, the item with the highest incidence in absolute terms; In addition, family allowances and the AUH grew by 17.5% in real terms. For its part, the salaries of the national public administration rose by 11.7%. Energy subsidies grew significantly, a consequence of international price increases resulting from the war in Ukraine. Results that are far from any adjustment of public spending, without departing from the parameters of understanding with the IMF.
To reflect: Despite the efforts made, it may be that what has been achieved is not enough, although it is essential to keep in mind the widespread and deep crisis that this government inherited, but, in addition, that the priority is to define the model of the country in which we intend to live. One is that of the total deregulation of work, with perhaps a greater number of formal jobs but with very low wages, almost no social protection, and wealth concentrated in fewer and fewer hands: ideas that have returned to the media through various analysts and politicians this week. The other model is the one that prioritizes the State as the regulator of the economy, and seeks to generate quality employment, greater consumption and inclusive growth that goes hand in hand with a better distribution of income and wealth. The future course of society will depend on which model prevails, an issue that must always be present in our actions and decisions.
National Deputy Front of All. President Solidarity Party.
Source: Ambito
