Argentina’s poverty rate has reached almost 53% in the first half of the year, a significant increase from the end of last year and more than double the rate from seven years ago. This surge in poverty is attributed to the tough austerity measures implemented by libertarian President Javier Milei. The country has experienced repeated economic crises which have taken a toll on regular Argentines, highlighting the severe impact of the government’s spending cuts aimed at reducing the fiscal deficit.
The data reflects the short-term pain caused by Milei’s austerity measures, with the country facing deep recession and triple-digit inflation. Despite signs of potential improvement, such as the bottoming out of the economy, the effects of the spending cuts are being felt by the population. Many individuals like 53-year-old Irma Casal in Buenos Aires are struggling to make ends meet as jobs become scarce and living conditions worsen.
While Milei’s spending cuts have garnered praise from markets and investors for stabilizing the state’s finances, they have also plunged the country further into recession. The Catholic University of Argentina’s Observatory estimated that the poverty rate reached 55.5% in the first quarter before easing slightly to 49.4% in the second quarter, resulting in an average of 52% for the first six months of the year. Despite the initial negative impact, Director of the Observatory Agustin Salvia noted some signs of improvement in recent months.
The Argentine government has responded to the rising poverty rate by cutting welfare programs and reducing support to soup kitchens. However, they have also expanded key welfare programs like the Universal Child Allowance and a Food Card program to provide direct support to families in need. Presidential spokesman Manuel Adorni acknowledged the severity of the situation, blaming past mismanagement by previous governments for leaving behind economic challenges that Milei is now addressing. The government is working to implement changes to improve the current situation and support those affected by poverty in the country.
Overall, the combination of economic crises, austerity measures, and mismanagement by past governments has led to a significant increase in poverty in Argentina. While the government’s efforts to stabilize the economy are ongoing, the impact on regular citizens like Irma Casal is evident. The country’s future remains uncertain as it navigates through the challenges of a deep recession and high inflation rates. The support provided through welfare programs is essential for many families struggling to survive in the current economic environment. It remains to be seen how effective these measures will be in alleviating poverty and improving the overall economic situation in Argentina.
