The consequences of the management of the National Government They become increasingly evident. He official speech It seems to describe a different country to which Argentine society lives every day.
The issue that took prominence in recent weeks is New agreement with the IMF, which will involve continuing to increase the already bulky debt that our country has with that agency, the result of the loan taken in 2018. Recently, the Minister of Economy Luis Caputo He said, after telephone communication with Kristalina Georgieva, that the agreed amount that the team of officials of the IMP You will submit to the board’s approval is US $ 20,000 million.
Within the political questions to the opposition, Caputo itself indicates that legislators would not be respecting the principles of democracy. Criticize the posture of blocks such as Union for the Homelandthat we reject the DNU that imposes indebtedness with the background. Actually, it is the Milei government who, since he assumed, does not know the division of powers by underestimating, for example, the role of Parliament. Is not the legislative power that has the powers to discuss and then vote on the issues of indebtedness?
The minister also referred to a “Unprecedented adjustment” as one of the supposed merits of its management “with much more demanding goals” than those that the background would have set. He added that it was “an expansive adjustment” and “socially acceptable.”
These sayings contradict reality. Although, as Caputo pointed out, the level of activity last December is 5.5% higher than the same month of the previous year (figure that Indec rose to 6.0% in its January calculation) must be taken into account that in December 2023 a 1.7% monthly had fallen and that for 2024 reached very low values. Besides, The Argentines are in a situation considerably worse than at the beginning of libertarian management. The increased unemployment while the quality of employment was reduced with a reduction of registered wage earners and an increase in monotributists.
As a consequence of the fall in the purchasing power of the population, private consumption continues (Sales in supermarkets and wholesale self -services are still below the levels registered in the previous management and even those of the pandemic). During 2024 the retirement assets were reduced by 17% in real terms with respect to 2023, including the $ 70,000 bonus that has been frozen for more than a year.
As for the industrial activity, According to an analysis released last week based on the data of the United Nations Industrial Development Organization (UNUDI), in a sample of 79 countries, Argentina was the one that contracted its industrial production in 2024 with respect to 2023. Although in central economies such as Germany, the United Kingdom and the United States also registered negative variations, these are much lower than the 9.4% contracted in Argentina, as the report points out.
Import opening
The variables of the external sector are a reflection of the dynamics promoted by the government’s policies of Milei: February was the ninth consecutive month in which The result of Exchange current account was deficient. In the first two -month period of this year, this variable added a negative balance of US $ 2,515 million, largely as a consequence of the travel deficit and other card payments that reached US $ 2,052 million, encouraged by the Appreciation of our currency, which lowers tourism and purchases abroad.
On the other hand, imports of goods grew 42.3%in a 65.4% of the amounts, in particular those of consumer goods, which are already at record levels for a February since 2004.
All these data translate into a way out or a lower currency income. As always we mentioned, a scarce good that must be administered efficiently.
While the official discourse focuses on highlighting the supposed benefits of strong adjustment to achieve fiscal balance and the promotion of importing openness, that is not the way. The deterioration of the living conditions of the population, the destruction of the industrial framework, the replacement of national manufacturing goods by imported, the null creation of employment in the public and private sector and the fall of domestic consumption are some of the consequences of this model.
During 2024 they have closed more than 16,000 small and medium enterprises. As the Assembly of small and medium entrepreneurs (APyME) expresses: “In an increasingly protectionist world, the presidential gloating with respect to the importing opening in the midst of an irresponsible deregulating deregulator is another sign that dark times are expected for all national companies and society.”
In summary, the solution does not happen to continue borrowing with the fund, but to build another country model, with more equity and social justice, in an economic development environment that fosters activities creative quality employment.
Source: Ambito
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