Poverty in Argentina fell to lowest since 2018 under Milei

[MilHojas]

Poverty fell to lowest since 2018 under Milei

Poverty in Argentina fell to the lowest level since the first half of 2018 in another victory for President Javier Milei.

www.batimes.com.ar

A combination of Milei’s austerity and a tightly controlled currency thwarted the pace of price increases in the second half of the year, combined with boosts to some social welfare spending, helping to bring more people out of poverty. The rate is defined locally as incomes that can afford the cost of a basic basket of goods and services.

Was there really any increase in social welfare spending under Milei?

 

[antipodean]

Poverty fell to lowest since 2018 under Milei

Poverty in Argentina fell to the lowest level since the first half of 2018 in another victory for President Javier Milei.

www.batimes.com.ar

Was there really any increase in social welfare spending under Milei?

Social welfare support and subsidies for the poorest have never been stopped. They have just been targeted at the people who actually need it the most rather than anyone who just wanted it or was willing to trade a vote for it. Amazing what ceasing to print money and spend it willy nilly can do for a country in so few years.

If you look at the social pyramid now, 30% of Argentines now belong to solid middle class households with monthly income over ARS$5m while 30% are considered "poor" belonging to households earning under ARS$2m per month, which is quite good for a Latin American country.
By comparison in Brazil that is 16% in the top segments with the same amount of income, and 73% earning less than ARS2.000.000/ BRL 7.000 a month as Brazilian middle class "C" is considered "poor" by Argentine standards (while 50%+ of the population is still considered "poor" by local standards).

The big challenge is now those 40% in the middle are facing COL challenges/ realities like everywhere else on earth bringing the country to a cross-roads with the temptation to revert to the self-destructive and cyclical red pill of "easy money" for today or continue on with the blue pill to "make their own money" for tomorrow.