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I think so far this is what people wanted: end the status quo and apply shock therapy.
His supporters hope that in the long run the economy will become independent and the country would come out of the never ending crisis. My guess is that everything will simply end up owned by private interests and while (best case scenario) the economy will do better, people will suffer even more.
The Argentinian economy will not do better, only the wealth of the neocolonial compradors will, and the wealth of their Global North capitalist masters.
That's what I meant, it will do better "on paper".
He did say he would apply shock therapy to the economy. He never mentioned if the economy would come out alive.
This is just the price the poor are going to have to pay while the rich get to loot the country.
"some of you may die, but thats a sacrifice im willing to make"
Who could've guessed that a rightwing government wouldn't solve their issues (which were originally caused by rightwing policies)?
Who would've known, the man that made it so people can get their salary in jugs of milk is a complete idiot.
It's beginning to look like Venezuela but with libertarians. It's quicker than I thought.
Venezueal is a locked country that's sanctioned to hell, Argentina is about to break incompetence records not ever seen before
Hell no. For Argentina to look like Venezuela, inflation must be 100,000%. I wish I was exaggerating. 1 USD is 40 trillion of the old Venezuelan currency pre-Chavez, the one the government has cut 9 zeroes to hide inflation ever since.
Of course, that doesn't mean that the situation in Argentina isn't looking dire.
Argentina isn't sanctioned at all lmao. Thinking Venezuela is a failure is exactly what the US and its allies want you to think with the ridiculous amount of sanctions. Can't have people see Socialism succeeding.
Look, theres a lot of reasons this guy sucks.
Increasing the costs of two things that are causing the most damange to our planet is not a reason to criticize him tho.
sure it is. removing subsidies on commodities like gas doesn't change the demand for gas, it just puts more of a burden on poor people, and doesn't matter at all to the rich who use it most. that path will only lead to backlash against green policies in general, see the yellow vest protests. in order to reduce consumption you actually need to reduce demand by giving people sustainable alternatives.
Demand elasticity is a thing. Demand won't shrink by the same ratio prices rose after removing subsidies, but it will shrink.
Response to that I can't predict, but there are places in the planet where prices are lower because of the general poverty of population and the need to still sell it, and places where prices are even higher, but most of the population can't afford fuel, I can't name.
EDIT: This was incomprehensible, sorry. I meant that in the long term prices for the consumer are going to become closer to what they were with subsidies, likely, thus the real prices - lower. The question is how bad it gets before that happens.
This guy isn't a climate activist. It's funny to see the price of fuel going up with a climate denier.
hopefully circumstances worsen quickly enough that it'll be noticable for everybody so that the general public can clearly identify it as a direct consequence of this maniac being elected. If its deteriorating too slowly people might just not notice it as much and might go along with all the coming explanations ( probably immigrants, leftists, blahblah). If there's a quick look into the abyss people might wake up and get into action.
"He also devalued the peso by 54 percent, putting the government’s exchange rate much closer to the market’s valuation."
It looks like the situation was worse all this time. The government just stopped pretending.
If there’s a quick look into the abyss people might wake up and get into action.
And vote for the politicians that gave them slow decline again...
Makes sense, if stuff is subsidized, the government has to pay for it. If the government doesn't have money to pay for it, they'll just print it out of thin air, devaluing the currency (and thus taxing the working class).
There's gonna be a lot of pain for Argentinians in the months and years to come, hopefully it'll all be worth it...
Austerity measures and privatization are basically never worth it.
It’s worth it for the capitalist class that is buying the country’s commons at fire sale prices.
Neoliberalism is a zombie ideology. Read a book: The Shock Doctrine
Printing money only devalues a currency when there’s no taxation to subsequently shred the money.
Second Thought: Why the Government has Infinite Money
That is not the idea that he had in mind when devaluing the currency. Instead of respecting the international money market exchange rates for USD to the Peso, he has unilaterally declared a new value which is about half of what it was before. The idea is to make Argentinian goods and labor competitive on the international market so the country can vacuum up huge sums of money from greedy investors.
That idea is dumb though because investors tend to want some kind of political stability. They will not just say "Oh I can build my widget for 30% cheaper in Argentina because of this money woo" - they will say "Oh, Argentina will probably seize my assets if we invest there because they're being run by a nutjob dictator."
The black market rate was around 1000 pesos per dollar and the official was 400. They devalued it to bring it closer to the black market one.
If the official rate meant anything, the black market one wouldn't be so drastically different.
Instead of respecting the international money market exchange rates for USD to the Peso
You're completely ignoring the black market Peso : USD conversion rate, which is even lower than what Millei has shifted things to at about 1000 pesos per dollar. The aim is to try to get the rate to actually reflect reality.
This is the best summary I could come up with:
Mr. Galli has been trying to cut back without making life worse for his two daughters, who are 6 years and 18 months old, including switching to a cheaper brand of diapers and racing to spend his Argentine pesos before their value disintegrates even further.
“I prefer to tell you the uncomfortable truth rather than a comfortable lie,” he said in his inaugural address, adding this past week that he wanted to end the country’s “model of decline.”
The economic turmoil paved the way to the presidency for Mr. Milei, a political outsider who had spent years as an economist and television pundit railing against what he called corrupt politicians who destroyed the economy, often for personal gain.
The previous leftist government had used complicated currency controls, consumer subsidies and other measures to inflate the peso’s official value and keep several key prices artificially low, including for gas, transportation and electricity.
With the chronic high inflation, labor unions often negotiate large raises to try to keep up, yet those wage increases are quickly eaten up by sharp price hikes.
“I always say that we are at university, and every day we sit for a difficult exam, every five minutes,” said Roberto Nicolás Ormeño, an owner of El Gauchito, a small empanada shop in downtown Buenos Aires.
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Picture me surprised, he looked like a calm and rationale person
I knew he was going to hurt Argentina badly, but I didn’t expect him to be this quick
I’m so glad Argentina pulled out from BRICS+, it would have been a drain on it
He has been in office for 2 weeks I can't imagine this is a result of his policies yet.