Poverty has no limit in Argentina

[CecilM]

It's no surprise; we're in an expensive country with low wages (especially for locals earning in pesos). Milei’s recessionary policies have driven salaries to their lowest in the region, while prices remain the highest, thanks to currency lag and brutal economic adjustments.

La recesión para bajar la inflación derivó en un país caro de salarios baratos

Argentina posee el costo de vida más caro de la región e incluso de ciertos países de la Unión Europea en términos relativos.

prod.eldestapeweb.com

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More and more studies are showing the same thing: even if they claim inflation has gone down, what good is it if people still can't cover their basic needs? A lot of folks are cutting back on activities or opting for cheaper brands because their buying power has taken a hit. Everyone around here says we need to wait and give Milei some time, but the reality is that his extreme measures are crushing the middle class, turning Argentina into one of the most expensive countries to live in.

Cuál es el país de Latinoamérica más caro para vivir donde se necesitan 11 sueldos mínimos más que en Europa

El costo de vida del país más caro de la región supera incluso a algunos de Europa en varios aspectos, según un reciente informe de la UBA (Universidad de Buenos Aires)

www.lanacion.com.ar

The research published by the Center for the Recovery of Argentina (Centro RA) at the UBA Faculty of Economic Sciences concludes that to cover the cost of living for a family in Argentina, you need "approximately six more basic salaries" compared to Brazil and Peru, the next most expensive countries in the region.

Argentina currently has a minimum wage of $262,432 (about US$292 at the current official exchange rate, around US$200 at the parallel rate used for the study). Compared to Europe, a typical family in Argentina needs, on average, 11 more minimum wages to buy basic goods and services and rent a property.

 

[Sonja]

The drop in inflation isn’t just a number; it’s expected to boost consumption, at least according to theory. However, it’s also true that wages have lagged behind inflation. We’ll see what happens in a few months...

Alivio para el consumo: en julio subió casi 2% respecto del mes anterior y se desaceleró la contracción interanual

Son datos del Indicador de Consumo de la Cámara Argentina de Comercio (CAC). La expectativa es que la demanda comience a reactivarse lentamente, de la mano de la baja de la inflación y la mejora en el poder de compra

www.infobae.com

 

[Larry]

Soup kitchens overwhelmed by demand as poverty skyrockets​

They need to get these people the food.

Soup kitchens overwhelmed by demand as poverty skyrockets - Buenos Aires Herald

The government, meanwhile, continues to fight a court-mandated order to deliver food stashed in warehouses

buenosairesherald.com

 

[Avocado]

Hard to believe this SOB won't give retirees the small increase they need.

Argentine retirees to hold demonstration against Milei’s measures - Prensa Latina

Buenos Aires, Aug 27 (Prensa Latina) The Coordinating Board of Organizations of Retirees and Pensioners of Argentina called for a demonstration to denounce the intention of President Javier Milei to veto a law on their pensions, Página 12 newspaper reported today.

www.plenglish.com

 

[legend]

The drop in inflation isn’t just a number; it’s expected to boost consumption, at least according to theory. However, it’s also true that wages have lagged behind inflation. We’ll see what happens in a few months...

Alivio para el consumo: en julio subió casi 2% respecto del mes anterior y se desaceleró la contracción interanual

Son datos del Indicador de Consumo de la Cámara Argentina de Comercio (CAC). La expectativa es que la demanda comience a reactivarse lentamente, de la mano de la baja de la inflación y la mejora en el poder de compra

www.infobae.com

In theory, we should see a drop in prices in September due to the reduction of the PAIS tax. We'll see if this boosts consumption.🙏

Caputo: “Yo creo que vamos a ver una baja de precios en septiembre por la reducción del Impuesto PAIS”

El ministro de Economía se refirió a los principales temas económicos, como inflación, jubilaciones y actividad; y destacó la baja del tributo a las importaciones, lo que podría tener un impacto positivo en los precios

www.infobae.com

 

[Johnny]

In theory, we should see a drop in prices in September due to the reduction of the PAIS tax. We'll see if this boosts consumption.🙏

Caputo: “Yo creo que vamos a ver una baja de precios en septiembre por la reducción del Impuesto PAIS”

El ministro de Economía se refirió a los principales temas económicos, como inflación, jubilaciones y actividad; y destacó la baja del tributo a las importaciones, lo que podría tener un impacto positivo en los precios

www.infobae.com

Hopefully prices come down. Getting rid of taxes is a great step so people buy more things. I was amazed with how much some imported things cost there. Crazy.

 

[Richardd]

For those saying Buenos Aires is more expensive than the U.S., check out the photo. My family of three doesn’t eat out or go to the movies anymore; we only do free activities. It’s hard to make ends meet with less than $8000 USD a month.

 

[Vince]

For those saying Buenos Aires is more expensive than the U.S., check out the photo. My family of three doesn’t eat out or go to the movies anymore; we only do free activities. It’s hard to make ends meet with less than $8000 USD a month.

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People that are saying that Argentina is as expensive as the US should be put in a straight jacket. You can't even compare the cost of the two countries.

 

[Bett]

Forgetting about small and medium-sized enterprises (SMEs) is a huge mistake because they are the backbone of Argentina’s economy. Not only do they generate most of the jobs, but they also keep local activity alive. You can't underestimate the impact of these businesses; if they go down, the entire economy takes a hit, not just in terms of jobs, but also in declining consumption and production. It's crucial to give them the support they need because without SMEs, there’s no stable economic future.

More pain for PyMES – small and medium businesses warn closures lie ahead

Business chamber warns that around 10,000 small and medium-sized enterprises closed in the first half of the year. If things don’t improve, the same amount could be shuttered before the year is out.

batimes.com.ar

 

[Larry]

Forgetting about small and medium-sized enterprises (SMEs) is a huge mistake because they are the backbone of Argentina’s economy. Not only do they generate most of the jobs, but they also keep local activity alive. You can't underestimate the impact of these businesses; if they go down, the entire economy takes a hit, not just in terms of jobs, but also in declining consumption and production. It's crucial to give them the support they need because without SMEs, there’s no stable economic future.

More pain for PyMES – small and medium businesses warn closures lie ahead

Business chamber warns that around 10,000 small and medium-sized enterprises closed in the first half of the year. If things don’t improve, the same amount could be shuttered before the year is out.

batimes.com.ar

I have been saying for a long time this is going to be painful. Seems like many more will close.

 

[MickMolloy]

Agree on this point. Transportation in many countries aren't profitable and it's citizens depend on it for life to function and get to work. Not everything should be based on dollars and cents. It is hitting locals very hard. He is putting the recovery on the backs of poor and middle class, whatever small amount is still left of the middle class. People will turn on him if things don't improve by the end of this year.

The thing that is so unbelievable is the people taking the subte to work every day are the exact demographic that love Milei and desperate for change and he's deliberately making their lives harder and stabbing them in the back just why ? ? ?

 

[Melibaires]

Spending on electricity, gas, water, transportation, and health insurance premiums represents a significant portion of the family budget, forcing families to juggle their expenses just to make ends meet. There have been several periods of regressive economic adjustment policies in this country’s history, but none with the speed of destruction of the middle class like the one being implemented by Milei's government. I support many of Milei's policies, but targeting the middle class? Why? Sometimes it seems like he lacks empathy for people, especially for the very class that voted for him.

 

[CecilM]

You don't have to be very smart to see that he acts as if people are just numbers. That’s why he lacks empathy, even for those who voted for him, let alone the retirees. And cutting education funding?? I think he needs to reorganize his priorities. Why benefit the wealthy with tax cuts? Some of Milei’s actions just don’t make sense.

A report released by the University of Buenos Aires (UBA) revealed that the cuts applied by the Government in the university system, which amount to a fall of 0.14% of the Gross Domestic Product (GDP) , are equivalent to the tax benefits obtained by the wealthiest sectors of the country in the Personal Property Tax , after the approval of the Ley Bases and the Fiscal Package promoted by President Javier Milei .

Según la UBA, el ajuste del Gobierno a las universidades es igual a los beneficios impositivos para el sector más rico

Un análisis de la Facultad de Ciencias Económicas estimó que el ahorro en la educación superior representa el mismo esfuerzo fiscal que la baja del impuesto a Bienes Personales o el régimen industrial de Tierra del Fuego

www.infobae.com

 

[Betsy Ross]

The thing that is so unbelievable is the people taking the subte to work every day are the exact demographic that love Milei and desperate for change and he's deliberately making their lives harder and stabbing them in the back just why ? ? ?

Well it's not easy solving the mess with the economy. To some it may come across as insensitive but Milei's attitude is that there have already been decades of delaying to fix the problem and it has to be solved and it's going to be painful to solve it but it has to be done. I don't think the issue is being non-empathetic. Everyone has empathy and sympathy for the poor and middle class but these problems have to be dealt with and there is no more time to delay.

For sure it is painful but some people are so desperate for change and for many they understand that things won't change here without fixing these problems. I don't think of it as stabbing anyone in the back. Just that the government can't afford to subsidize so much of all of these costs. Will be painful no doubt about it but I wouldn't say that anyone is stabbing anyone in the back. He said from before he was elected all of these things needed to change.

 

[Vince]

I don't think anyone will support 100% of what any government does. You said it well @Betsy Ross. I agree with some of you that say that they need to slow down some of these increases. Some will argue that it's not a lack of empathy. It's just better to do all of these painful things sooner rather than later. Later people won't have patience for these kind of things so the government's argument is to do the painful stuff as quickly as possible upfront.

I don't ever think that you're probably ever going to be able to look at certain sectors like transportation to be a profit center. There will probably always need to be some subsidies in certain sectors.

 

[Larry]

The thing that is so unbelievable is the people taking the subte to work every day are the exact demographic that love Milei and desperate for change and he's deliberately making their lives harder and stabbing them in the back just why ? ? ?

I couldn't agree more. Sure some things you will eventually need to adjust the prices on. Even some of the increases in utility prices I can understand. I think they are overdoing it there too but transportation increases on this scale during a recession and many job losses seems to be crazy to me. There is only so long before this will blow up in Milei's face.

Spending on electricity, gas, water, transportation, and health insurance premiums represents a significant portion of the family budget, forcing families to juggle their expenses just to make ends meet. There have been several periods of regressive economic adjustment policies in this country’s history, but none with the speed of destruction of the middle class like the one being implemented by Milei's government. I support many of Milei's policies, but targeting the middle class? Why? Sometimes it seems like he lacks empathy for people, especially for the very class that voted for him.

The guy has no compassion. Prices are very dear on everything and this is not sustainable.

 

[Uncle Wong]

Hard to believe this SOB won't give retirees the small increase they need.

Argentine retirees to hold demonstration against Milei’s measures - Prensa Latina

Buenos Aires, Aug 27 (Prensa Latina) The Coordinating Board of Organizations of Retirees and Pensioners of Argentina called for a demonstration to denounce the intention of President Javier Milei to veto a law on their pensions, Página 12 newspaper reported today.

www.plenglish.com

To be fair when do you draw the line? He is just saying the government can't spend what it doesn't have. Argentina keeps making the same mistake and just spend spend spend. It's not a question of wanting to give people a raise but the matter where is the money going to come from?

Sad situation but everyone seems to want to just keep spending money but no one really thinks about where it will come from.

 

[CecilM]

I see your point about spending and fiscal sustainability. However, rather than making broad cuts that impact everyone, we could focus on adjustments for specific sectors, like the high-income earners, rather than reducing their taxes. Argentina has one of the lowest minimum pensions, and the promised adjustments to the political sector haven’t happened. It's crucial to address these issues fairly and equitably to ensure that adjustments don’t disproportionately affect the more vulnerable segments of society.

The fact that retirees have one of the lowest minimum pensions in the world is newsworthy, it doesn’t take much intelligence to see that something is seriously wrong. And it’s not just Milei to blame; the previous administration left a minimum pension of only 156 USD. Milei promised not to touch pensions in his speech, and here we are.

 

[Lucia]

The numbers speak for themselves: poverty reached 52% of the population in the first semester, more than half, and nearly 18% of the population is indigent. It's a sad situation.

La pobreza alcanzó al 52% de la población en el primer semestre, según la UCA

El Observatorio de la Deuda Social Argentina de la universidad detalló a Infobae que se trata de la cifra más alta desde 2004. Casi el 18% de los argentinos son indigentes

www.infobae.com

 

[Wally]

I see your point about spending and fiscal sustainability. However, rather than making broad cuts that impact everyone, we could focus on adjustments for specific sectors, like the high-income earners, rather than reducing their taxes. Argentina has one of the lowest minimum pensions, and the promised adjustments to the political sector haven’t happened. It's crucial to address these issues fairly and equitably to ensure that adjustments don’t disproportionately affect the more vulnerable segments of society.

The fact that retirees have one of the lowest minimum pensions in the world is newsworthy, it doesn’t take much intelligence to see that something is seriously wrong. And it’s not just Milei to blame; the previous administration left a minimum pension of only 156 USD. Milei promised not to touch pensions in his speech, and here we are.

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The key point is that this has nothing to do with who is in office. The pensions actually are higher under Milei than previous administrations. There simply isn't the money for it. Argentina needs to finally live within it's means.