Poverty Crisis Deepens in Argentina Under Milei’s Austerity Measures

Over 52% of Population In Argentina Now Living in Poverty Under ‘Anarcho-Capitalist’ President

BUENOS AIRES, ARGENTINA- Argentina’s poverty rate has skyrocketed to 52.9 percent in the first half of 2024, according to the national statistics bureau, INDEC. This alarming figure marks a dramatic increase from 41.7 percent just six months prior, with approximately 15.7 million Argentines now classified as living in poverty. Nearly one in five are considered indigent.

The surge in poverty coincides with President Javier Milei’s implementation of a stringent austerity program aimed at eliminating the country’s budget deficit and curbing rampant inflation. Since taking office in December, Milei—self-identified as an “anarcho-capitalist”—has cut subsidies for transportation, fuel, and energy, resulting in significant job losses for thousands of civil servants.

While monthly inflation dipped to 4.0 percent in July, the annual rate remains staggering at 263.4 percent, one of the highest globally. Following Milei’s controversial decision to devalue the peso by over 50 percent, inflation spiked by 25.5 percent in December.

Despite achieving Argentina’s first monthly budget surplus in nearly 12 years, critics argue that these fiscal gains have come at a devastating cost to the nation’s poor and working-class citizens. As the government’s austerity measures continue, many question the sustainability of Milei’s approach in addressing the country’s economic challenges.