Argentina’s poverty rate has spiked from 42% to 53% during the first six months of Javier Milei’s presidency, the highest level since 2003. Milei’s austerity program, including cutting subsidies and devaluing the peso, has reduced inflation but deepened the country’s recession. Despite this, foreign investors and the IMF have supported Milei’s fiscal shock therapy.
Milei, a political outsider, promised to fight Argentina’s inflation, and his government aims to bring it down to 122.9% by the end of the year. However, the economy is struggling, and further spending cuts may be necessary to achieve a surplus. The poverty rate has increased significantly, with extreme poverty rising to 18.1% in the first six months of Milei’s presidency.
The runaway inflation has led to job losses in both the formal and informal sectors, endangering Argentina’s middle class. Many like Leonardo Constantino, a former restaurant worker turned weekend bouncer, are struggling to make ends meet. Argentina’s economy has contracted, and the loss of purchasing power has forced many to rely on assistance from the government and local organizations.
Low-paid Argentines who used to rely on government subsidies for utilities and food are now facing increased bills due to Milei’s austerity measures. This has pushed many into poverty, with some turning to side hustles to pay bills. Despite the challenges, some like Sofia Gonzalez Figueroa are using welfare programs and bartering to survive.
Argentines like Débora Galluccio, who lost her job and now depends on community kitchens for meals, are adapting to the harsh economic conditions. Milei’s decision to relax rent control regulations has made housing unaffordable for many. Despite the hardships, some see these reforms as necessary steps towards long-term economic stability, hoping that Milei can bring prosperity to the country.
The impact of Milei’s presidency has been felt across Argentina, with families like Rocio Costa’s struggling to meet basic needs. Others like Emilce Correa have taken on extra work to cover rising expenses. As the government faces calls for increased public spending, the months ahead will be challenging for Milei and his administration as they navigate the country’s economic crisis.
