Sharp rise in poverty prompts protests against Milei's austerity measures

Since taking office in December 2023, Milei has implemented drastic measures such as slashing subsidies for essential services and devaluing the peso by 54%. While these actions have successfully reduced the monthly inflation rate from 25.5% to around 4.2%, they have also resulted in a steep increase in poverty levels, with extreme poverty rising to 18.1% in just six months. The government’s spokesperson has attributed the current economic crisis to previous administrations, emphasizing the inherited challenges. However, the rapid deterioration in living conditions has led to protests from labor unions and other groups opposing the relentless austerity policies, which critics argue disproportionately affect working families.

Economic Context

Milei’s approach represents a significant shift from prior populist governments, which maintained consumer spending through extensive subsidies and government support. The austerity measures have resulted in a contraction of the economy, with a 3% decline reported this year. Many Argentines, particularly those in the informal job market, are struggling to make ends meet as inflation remains among the highest globally, currently exceeding 230% annually.

Public Sentiment

Despite the hardships, some segments of the population appear willing to endure the immediate pain for the hope of long-term recovery. As the government continues to advocate for fiscal responsibility, public opinion remains divided. While Milei’s approval rating has decreased, a significant portion of the population still supports his government, reflecting a complex landscape of hope and despair amid economic turmoil.