Argentina’s Poverty Rate Hits 53% Amid Austerity Measures Under Javier Milei

 

Argentina's poverty rate has surged to nearly 53% in the first half of Javier Milei's presidency, revealing the impact of his severe austerity measures on the population. The country's statistics agency reported this alarming rate, marking the highest level in 20 years and pushing approximately 3.4 million Argentinians into poverty.

Since taking office in December, Milei, who identifies as an "anarcho-capitalist," has aggressively cut public spending to tackle chronic inflation and eliminate the budget deficit. His administration has frozen pensions, reduced support for soup kitchens, slashed welfare programs, and halted all public works projects. Additionally, tens of thousands of public employees have lost their jobs, while reduced subsidies for energy and transportation have further strained household budgets.

Kirsten Sehnbruch, a Latin America expert at the London School of Economics, expressed concern about the drastic increase in poverty, stating, "This new economic program is not protecting the poor. The jump is absolutely horrendous."

While Milei's cuts have garnered praise from markets, investors, and the International Monetary Fund (IMF)—which Argentina owes $43 billion—the country continues to grapple with severe inflation. Monthly inflation has decreased from around 26% in December to about 4% in June, but annual inflation still exceeds 230%.

Community worker María Claudia Albornoz described the government's actions as creating "a situation of desperation." She shared that many families are struggling, saying, “We have three jobs and it is not enough.”

The impact of the cuts is also felt by workers like 33-year-old Catalina, who works for the ministry of justice. She recently learned that she would lose her job along with 2,500 others by the year's end. "I have been looking for another job for months, but there is no work. I don’t know how I’m going to make it," she said.

Christopher Sabatini, a senior fellow at Chatham House, noted that while controlling inflation often leads to economic decline, it remains uncertain whether Milei's approach will be effective in the long term. "The question is, will this belt-tightening have any benefit?" he asked, highlighting the dangers of such measures.

Despite Milei's initial popularity, recent surveys indicate a significant drop in public support, with a nearly 15% decline in September—the steepest during his nine months in office. Concerns about inflation have shifted towards job loss and rising poverty.

Milei's spokesperson, Manuel Adorni, defended the administration's actions, stating that the government inherited a dire situation from previous left-leaning administrations. "Any level of poverty is horrendous. We are doing everything so that this situation changes,” he said.