Argentinian poverty on the rise

Argentina, a country that has long struggled with inflation and social differences due to its economic instability, has fallen even deeper into poverty since Javier Milei took office as president in December 2023.

The rise of Javier Milei

Before Milei was elected, Argentina’s poverty rate had been 25% for almost 40 years. But the new government’s policy caused it has now risen to 53%. According to the National Institute of Statistics and Censuses (INDEC), almost 25 million Argentinians live below the poverty line.

The strongly right-winged president implemented a policy that led to thousands of Argentinians losing their homes. This also concerns people with higher education, many of whom end up short of food and essentials.

Unlike the previous presidents, Javier Milei did not belong to any political party when he won the election. Previously, he had held the office of deputy for two years. That being said, he had only minor experience in politics.

In general, two things won him votes. First, the public was disappointed of previous traditionalist governments, who failed to keep their promises. Secondly, he campaigned on a more modern approach to politics, using social media to communicate.

Not that he would gain a lot of votes. In fact, his poorly structured government gained only 10% of the seats in the Senate and 15% in the Chamber of Deputies. But the fragmentation of traditionalist political parties allowed him to govern in minority.

Milei’s shock economic plan

When Milei got into power, he found the country heavily indebted as a result of previous populist policies.

One of the main ambitions of the president was to heal the hyperinflated economy. For this, the government implemented the “shock economic plan”, which focuses on changes in macroeconomics, opening the economy up to foreign markets.

To carry it out, however, the president decided to take a set of austerity measures. These included cutting energy subsidies, dismissing government employees, stopping public infrastructure projects, or freezing salaries and pensions.

These policies helped balance the country’s deficit. Argentina reached the lowest annual inflation rate in four years (166%). But at the same time, they drastically affected the lives of ordinary people. The prices of utilities like gas and electricity skyrocketed, and supermarket sales dropped significantly. Unemployment has grown, and poverty has intensified.

One of the measures was also the devaluation of peso by more than 50% against the US dollar. While this made the exports cheaper, the imports became more expensive.

According to the professor at the University of Southern California, Carol Wise, “Milei’s facile market shock is yet another primrose path for a nation that has shown an incredible tolerance for economic suffering”, suggesting it may be just another unpromising try for Argentina.

But he is not the only one. More analysts share similar opinions. According to Juan Santarcángelo, senior researcher at the National University of Quilmes in Buenos Aires, “There is no chance that neoliberal policies will reduce poverty in the long term”.

The shock economic plan remains questionable, but one thing is certain – it goes at the expense of common people.

Consequences of poverty

Poverty negatively impacts various areas of the everyday life of the Argentinians. One of them is diet. Around 38,000 social organizations try to help the community, offering food in containers to Argentinians in need. Such NGOs serve around 10 million people, feeding almost a quarter of a total population of 46 million people.

Some days, people only get one meal a day, and this does not only concern adults. As a matter of fact, soup kitchens often cannot afford to buy essential nutritious groceries such as vegetables, fruits, or meat, leaving people, including children, malnourished.

The lack of food is not the only issue. Climate change is causing an increased incidence of floods and other natural disasters around the world. And as poverty forces Argentines to live in poor-quality housing, many face the risk of losing a roof over their heads.

Furthermore, it only makes sense to have some type of cooling system in such a hot country like Argentina. And due to the changes in climate that come with strong heat waves, this is a must. The hot weather also requires some protection from the sun such as sunscreens, which, similarly, these people simply cannot afford.

Another much needed form of protection, which people have no means for, is repellent. High temperatures and humidity cause the expansion of Aedes aegypti mosquitoes, which transmit the dengue virus. The mosquitoes arrive in cooler places they had not been present before, transmitting the disease, and infecting thousands of Argentinians.

But the list of problems poverty brings about doesn’t end here. According to Statista, economic instability and poverty lead more and more Argentinians to gamble online to make some extra cash. Online casinos’ revenues are on the rise. The problem has been stressed in the press, with an alarming 24% of Argentinian teenagers admitting to playing casino games, just like those on this website, or passing their time sports betting.