Over the weekend I learned that 3 companies I know in capital and the interior have closed down. The promised state aid of ATP never arrived. The cash ran out.
One was a foreign company who refused to inject new capital knowing they would not be able to get it out again. So they literally cut their contracts and abandoned the market did a runner leaving their employees with a come and get me approach. The other 2 are small local businesses who handed back their keys and the owners don't have the means to pay off their employees so they will end up in court and paying back $20 a week for the rest of their lives.
These companies employ mostly unskilled people in depressed locations meaning the employees will have very difficult times getting new formal jobs any time soon. They also ended up without the much prized double indemnity or a peso to feed their families over the coming weeks until any ANSES payments are approved. Then what? A dignified life awaits them?
Don't even start me on the situation of my barber...
A stark reminder that policy means absolutely nothing when the money runs out but it means something in terms of how fast that money runs out. Jobs are being lost regardless of government policies prohibiting layoffs or "leading the world" in terms of avoiding bad unemployment statistics. The key and differentiating issue here in Argentina is that there is neither private or public capital available any time soon to invest in making new businesses to replace the lost businesses combined with a lack of any effective safety net and chronic (and age old) social inequality meaning the workers who loose their jobs now can easily find themselves further marginalised and end up in a villa with a lifetime of abject poverty ahead of them. This is a totally different prospect than a European or Asian worker who ends up unemployed.
With a more concise approach to quarantine and social isolation and fairer distribution of aid, the government would be able to focus aid to the areas that yes or yes need to stay closed to control the health situation and let other sectors continue with protocols based on mitigating health risks. These businesses can then generate revenues to stay afloat and self-help, or at least partially. If they allowed barbers to operate under strict protocols, the demand would definitely be there to allow them to pay their employees and the rent with a little left over to eat. Instead they suffer with fake promises of state aid while state employees sit at home on 100% of their salary.
None of this means choosing economy or health, it means health and economy. Making out that there must be a choice is just a political tool of mass manipulation.