Economic 'Miracle' or Misfortune? The Struggles Behind Argentina's Fiscal Reforms

Argentina, under the presidency of Javier Milei, has seen substantial economic stabilization with reduced inflation rates and its first budget surplus in 14 years. Milei's economic policies have torn down currency controls and stabilized the previously turbulent economic landscape, drawing applause from supporters and market analysts as an 'economic miracle'.

Yet, the reality for many Argentinians, especially public sector workers like teachers, has become increasingly harsh. Salaries have significantly lagged behind, with public sector wages falling over 15% in real terms since Milei assumed office. Meanwhile, private sector earnings have slightly outpaced inflation, emphasizing the widening gap between different economic strata.

Despite the economic progress, unemployment in the formal sector initially spiked, only to gradually improve. However, the rise in self-employment and the informal job sector has led to increased vulnerability, as these workers often lack social security benefits. Public unrest has been further fueled by a drop in supermarket consumption, evident through ongoing protests and rising discontent among various sectors, including pensioners.

(With inputs from agencies.)