Milei’s fiscal shock has changed Argentina’s destiny

[MilHojas]

https://thehill.com/opinion/international/5775146-javier-mileis-fiscal-shock-has-changed-argentinas-destiny/

After three years of what can only be described as fiscal shock therapy, the central question is no longer whether stabilization was necessary. It is whether radical fiscal reform can consolidate political legitimacy and endure.

 

[Ries]

What, exactly has gotten better for you since Milei?
In my case, I cant think of anything.
But I know some people have seen some postives.

 

[MarshallE]

Currency stability is a big one, the peso has been around 1400-1500 for a long time now. I remember with Alberto it had a 50% devaluation in a month in the winter of 2022, that's no way for people to live. There's been decades of mismanagement, folks gotta take the medicine if we want Argentina to prosper again.

 

[Milton]

Currency stability is a big one, the peso has been around 1400-1500 for a long time now. I remember with Alberto it had a 50% devaluation in a month in the winter of 2022, that's no way for people to live. There's been decades of mismanagement, folks gotta take the medicine if we want Argentina to prosper again.

Yeah this is something the complainers don't really comprehend. There is no magic solution to change over night into a perfect country, the past will haunt still for many years to come unfortunately but continuing to correct everything step by step is the only way to move forward.

 

[LuckyLuke]

What, exactly has gotten better for you since Milei?
In my case, I cant think of anything.
But I know some people have seen some postives.

Expats have been disproportionately affected the appreciating peso and I don't think you will get a whole lot of cheers regarding that.

That being said, the last vote turn out reflects the number of people who wish to continue this road of fiscal constraints or not. I think that speaks more words than anyone here can say. I, myself was surprised by the LLA sweep given the gripes I have heard about the current economic malaise.

 

[Milton]

Expats have been disproportionately affected the appreciating peso and I don't think you will get a whole lot of cheers regarding that.

That being said, the last vote turn out reflects the number of people who wish to continue this road of fiscal constraints or not. I think that speaks more words than anyone here can say. I, myself was surprised by the LLA sweep given the gripes I have heard about the current economic malaise.

yeah it has become more "expensive" but if you compare that to an artificially low reference point (that was destroying a country) then you will always end up disappointed that your free arbitrage has ended.

The vote was definitely a strong suggestion the public understand that the past decades of destruction will take a long time to recover from and I just hope it improves quickly but reality is its a long arduous process.

 

[Ries]

Currency stability is a big one, the peso has been around 1400-1500 for a long time now. I remember with Alberto it had a 50% devaluation in a month in the winter of 2022, that's no way for people to live. There's been decades of mismanagement, folks gotta take the medicine if we want Argentina to prosper again.

I have not noticed any decline in inflation due to currency stability.
So its not helping most argentines I know, who are still paying more in pesos for most things on a regular basis.
And if they have dollar savings, those dollar savings, and that currency stability, means that the meal that was 23,000 pesos two months ago, and is 28,000 pesos now, is more expensive BOTH in dollars and in pesos.
The peso dollar exchange rate being stable should keep prices stable- but for things I buy, like, say a monster energy drink, a choripan, expensas, a shirt- we see continuing inflation in pricing.
Its kinda like the worst of both worlds.

 

[Caribbean Cool]

Prices in the grocery store are a disgrace, period. Meats, tuna, donuts, rice, flour and coke. Prices don't just go up, they leap up.

 

[Milton]

I have not noticed any decline in inflation due to currency stability.
So its not helping most argentines I know, who are still paying more in pesos for most things on a regular basis.
And if they have dollar savings, those dollar savings, and that currency stability, means that the meal that was 23,000 pesos two months ago, and is 28,000 pesos now, is more expensive BOTH in dollars and in pesos.
The peso dollar exchange rate being stable should keep prices stable- but for things I buy, like, say a monster energy drink, a choripan, expensas, a shirt- we see continuing inflation in pricing.
Its kinda like the worst of both worlds.

I dont know a single country right now that doesnt have inflation and rising supermarket prices. The effects of covid inflation are still being felt.

And regarding Argentina under the last govs the inflation was literally out of control (200% per year or something crazy) so even now thats its down a lot the effects of that are still being felt which is why its so important to not let it ever get out of control. But at the end of the day every single currency in the world is depreciating and losing value every day so prices will only ever increase over time.

 

[Milton]

Prices in the grocery store are a disgrace, period. Meats, tuna, donuts, rice, flour and coke. Prices don't just go up, they leap up.

Grocery stores are to be avoided for specific items but people are lazy and want to buy everything in one place. Eg 1 kilo of pollo de campo is 14,000 in a butcher and in supermarket normal basic chicken is almost 20,000 per kilo. There are many cases of over priced stuff in supermarkets but people dont try to shop elsewhere