Politics Protests erupt in Argentina against President Javier Milei’s economic shock decree - Argentina Reports

[All the Answers]

I don't claim to have all the answers but I have all the answers!

Milei or Peronista I think everyone can agree with these facts:

When the IMF is cheering you on it doesn't necessarily mean it's the best for the people of a Nation.

It's always the poor who get hit the hardest. Like, seriously, they've been through the wringer with the crazy inflation in recent years, and now, they're still gonna feel the heat with the steps taken to rein it in. Not saying it's not the right solution because it's probably the ONLY solution to fix things.

I'm kinda holding off on passing judgment on Milei. Gotta give it like 16 to 24 months to see how these changes play out. We might not have the whole picture by then, but at least we'll get a sneak peek. 🤷‍♂️

 

[McDonald]

I watched these guys and it was pretty funny listening to guys that don't know anything about Argentina!

I heard these guys talking about how the private sector won't be held accountable. I thought that was interesting.

So, about the whole private sector not taking the heat—Milei's saying they might dodge higher taxes on profits, chill on employment laws, and skate past some regulations. Like, some of that makes sense, you know, but not all of it.

Looking at the past few weeks, companies straight-up shifted the devaluation burden onto regular folks. First, they jacked up prices like crazy, even when there wasn't a solid economic reason. Then, salaries aren't catching up, and who knows when they will. It's all about power here—small local businesses can't keep up with the price hike, while big players can basically do whatever, even if it means shutting down for a bit. And that's just wrecking the economy even more.

I'm no expert, tried to dig into this mess a decade ago and got lost in the sea of useless data they throw around here, not to mention the lack of relevant info. We gotta break it down between big international companies, big Argentinian ones, the middle-sized ones, and the small businesses. Plus, different sectors play by different rules. Some are raking it in, while others are barely staying afloat. It's not as straightforward as how they're run.

But here's the thing—if the rich are getting richer, which is like the usual crisis deal, it's only fair they pitch in for the rebuild. They're earning because regular folks are buying stuff, and they've got access to infrastructure and employees. If everyday working people are shelling out more, companies and people with passive income should be forking over, maybe even more.

As for Milei, 4 years might not cut it for the radical change he's gunning for. The real question is when things will start looking up for the average voter. You can have all the stats on your side, but folks get tired of being broke real quick, especially those who still see themselves as middle class, and there's a bunch of those. It's easy to be all practical from a high perch, but it gets trickier when you're feeling the pinch. And let's not forget about the opposition—they won't just sit back. And the unions, they're an even bigger threat to Milei than the opposition, and they're totally off the hook when it comes to accountability... 🤷‍♂️

 

[All the Answers]

So, Argentina's pretty much been this super-regulated scene with sky-high taxes, and that's the deal that's set the stage for the situation we're in now. You've got a handful of big shots raking in mad profits, and guess what? Sometimes, these same companies are the ones cheering for all those regulations—like, it's called regulatory capture. They kinda lock themselves in, shielded from competition, and only they can handle the whole setup. Just like you mentioned, they can hit pause on operations whenever they feel like it, roll with a squad of lawyers, throw their weight around with the government, and, of course, they've got a bunch of accountants in the mix too. 🏛💼

 

[Gus UK]

So, Argentina's pretty much been this super-regulated scene with sky-high taxes, and that's the deal that's set the stage for the situation we're in now. You've got a handful of big shots raking in mad profits, and guess what? Sometimes, these same companies are the ones cheering for all those regulations—like, it's called regulatory capture. They kinda lock themselves in, shielded from competition, and only they can handle the whole setup. Just like you mentioned, they can hit pause on operations whenever they feel like it, roll with a squad of lawyers, throw their weight around with the government, and, of course, they've got a bunch of accountants in the mix too. 🏛💼

Coming from the EU, taxes anywhere in the Americas don't really faze me, but I get it—they're kinda all over the place, can get shady with corruption, and the whole regulatory scene is a bit of a mess. But, like, loosening up those regs should be done with some caution. Going all wild with deregulation could just lead to one headache after another, and Argentina's not exactly rolling in dough.

Before the money starts flowing in, a bunch of it's gonna flow out. When Macri was out, my first move was getting as much out as I could, and I'm just a regular person. That's probably gonna be the initial move for many, so there's gonna be even less cash around, and who knows when the inflow will start, especially if Milei's banking on private investments.

All this economic stuff is way above my pay grade, and the solutions? Forget about it. I'm pretty sure most Argentinians, and even us expats, are in the same boat right now. So, I just throw ideas around, talk about what I wish would happen, and hope things don't completely go up in flames on the way to normalcy. I've seen countries go through some ups and downs, lived through four-digit inflation, even saw million inflation up close. But for some reason, I'm less confident in Argentina pulling through, and it's not just 'cause of the social programs.

 

[Avocado]

I posted this in another thread but applicable here too.

We should make a pool of money and bet which day Milei gets airlifted out of office when he resigns from office. I give him 6 months on June 9, 2024.

 

[Finance Prof]

So, like, these Argentinian protesters, who are barely scraping by, got asked why they're hitting the streets and protesting. And get this—they're all fired up because, with the new decree, foreigners can snag more than 1000 hectares of land...! 😡🌍

 

[Soytoy]

"La Patria no se vende." The only thing that's missing is the fascist salute, seriously. But check it—despite all the xenophobia vibes toward foreign investors, who, by the way, just gotta chill in Argentina for two years without dropping a single penny to stop being "foreigners," it doesn't exactly put the brakes on their union and political leaders snagging properties in Florida and getting their own slice of someone else's "Patria"... 🤷‍♂️💸

 

[All the Answers]

"La Patria no se vende." The only thing that's missing is the fascist salute, seriously. But check it—despite all the xenophobia vibes toward foreign investors, who, by the way, just gotta chill in Argentina for two years without dropping a single penny to stop being "foreigners," it doesn't exactly put the brakes on their union and political leaders snagging properties in Florida and getting their own slice of someone else's "Patria"... 🤷‍♂️💸

For sure, but I think the law is mostly targeting those foreign big shots grabbing massive pieces of land. Like, take British billionaire Joe Ted Lewis—he scooped up Lago Escondido and all the land around it, and bam, shut down the public access road like it was nothing. 😒💰

Government sues Joe Lewis over 12,000 hectares in Patagonia - Buenos Aires Herald

The Interior Ministry filed a complaint against the British billionaire for alleged irregularities in buying lands in Río Negro

buenosairesherald.com

 

[Shoemaker]

For sure, but I think the law is mostly targeting those foreign big shots grabbing massive pieces of land. Like, take British billionaire Joe Ted Lewis—he scooped up Lago Escondido and all the land around it, and bam, shut down the public access road like it was nothing. 😒💰

Government sues Joe Lewis over 12,000 hectares in Patagonia - Buenos Aires Herald

The Interior Ministry filed a complaint against the British billionaire for alleged irregularities in buying lands in Río Negro

buenosairesherald.com

Maybe it's supposed to be aimed at them, but honestly, it's kinda pointless. Especially in the here and now. The law that puts the brakes on foreign land ownership ("zonas de seguridad") dates back to 1944—yeah, made by a military dictatorship. They throw the whole "national security" reason around, but let's be real, it's all about that pure nationalism vibe. And guess who really cashes in on this law? Rich Argentines, getting their hands on lands with less competition and lower prices.

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Edelmiro Julián Farrell - Wikipedia

en.wikipedia.org

To show how absurd these old-school laws are, here's the kicker: If Joe Ted Lewis kicked it at his estancia for just two years or tied the knot with an Argentine, boom, he'd no longer be British but an Argentine, just like you and me in the eyes of Argentine law. (Then, it wouldn't be any different from Cristina or Maximo shutting down public access roads on their Patagonian lands.) So, trying to make sense of this law as a way to keep foreigners from buying land is a bit of a stretch, especially when getting Argentine citizenship is basically a walk in the park, and Argentina itself is all about being a melting pot of immigrants.