Carry on like this or a radical turnaround? The runoff election is about the future of South America’s second-largest economy, which is plagued by high inflation, poverty and debt.
Amid a severe economic crisis, Argentines are electing a new president. In today’s runoff election, Economy Minister Sergio Massa from the ruling Peronists is running against the libertarian populist Javier Milei. In the most recent polls, the two were almost neck and neck.
“We decide which country we will live in in the coming years,” said Massa after casting his vote. Around 35 million people are called to vote. Voting is compulsory. Acting head of state Alberto Fernández said in the capital Buenos Aires: “We must respect and preserve democracy.”
Argentina is facing a real decision on direction: While Economics Minister Massa is in favor of continuing government policy with strong state intervention in the economy, the self-proclaimed “anarcho-capitalist” Milei is promising a radical turnaround: He wants to introduce the US dollar as legal tender, the central bank as well as abolish many ministries and radically cut social spending.
Milei’s “extreme views” are well received by young voters
“No one with such extreme views on economic issues has ever been elected president of a South American country,” said economist Mark Weisbrot of the US research institute Center for Economic and Policy Research. “It barely recognizes a legitimate role for government in some of the most important policy areas that most people see as necessary for a democratic, humane and stable society.”
The radical cure planned by Milei is particularly well received by young people. Many only know life in constant crisis mode, are disappointed with the political establishment and want a fresh start.
Massa recently pumped billions into the economy
Government candidate Massa, on the other hand, is likely to fundamentally continue the current policy of massive government intervention in the economy and extensive social programs. Most recently, he reached deep into the state treasury to keep voters happy. He ordered mass new hires in the public sector, approved higher income tax allowances and granted one-off payments for employees and pensioners. According to media reports, Massa has pumped the equivalent of several billion euros into the economy in recent months, around 1.5 percent of gross domestic product. The center-left politician recently fueled fears of social cuts if his rival Milei won the election.
South America’s second largest economy is in a deep economic crisis. The inflation rate is over 140 percent, and around 40 percent of people in the once rich country live below the poverty line. Argentina suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of much tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt is constantly growing.
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
