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Argentina’s economy is essentially a mixed-economy type, meaning it is characterized by collaboration between the public and private sectors. The country has a diverse economy spanning various industries, including agriculture, manufacturing, and services. It is rich in natural resources such as oil, gas, and minerals. However, it’s crucial to note that Argentina has had a tumultuous economic history with periods of high inflation, currency fluctuation, and political instability.

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The agricultural sector plays a significant role in Argentina’s economy. It contributes to approximately 13% of the GDP and employs approximately 17% of the workforce. The country is famous for its Soya and its extensiv

So I just saw a post about Argentina's inflation, which apparently has been going down month-to-month. However, in the comments there were quite a few people arguing about whether life has really gotten better in Argentina.

So I'm wondering, is the economy and welfare really better than under the previous government? Do you have trust that Milei's policy is going to get Argentina into a stable economy?

Thank you for answering, I appreciate it.


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By Diario

16 thoughts on “Hi, non-Argentinian here with a question about your economy”
  1. Imagine your home, with everything in place, but suddenly you decide to take all the stuff you have out. I mean everything you keep in your wardrobe, all the dishes and silverware that are in the kitchen cabinets, all the medicines and cosmetics that you have in the bathroom closet and even all that old things stored in attic. 

    You could take two hours or a bit more to do so, because it is very easy to disorder a house. But now imagine how difficult should be to put all again in its place. Maybe it should take a week.

    With that little example in mind, you must now think that in this country the economy was being messed up for 8 decades continuously by all the governments we had. This president now is trying to put all the stuff in order, but he is in charge since December. 

  2. Everything is slowly getting better, some people just can’t comprehend that you can’t fix problems that date over 25 years ago in a month. Or a year.. This is just the beggining of the recovery

  3. The question is very simplistic, is not just “we have inflation, is going down so we are better”.

    Definitely the situation from the “street” point of view is worst. Less money, no credit, less jobs. There’s no argument about that. Why? In the last 20 years there was a Keynesian style public policy based and maintained by monetary emission… So there was more money in the streets! But then the money has less value… Now this policy stopped and the “fantasy” is over.

    Inflation is going lower because there is less money in the street, so no demand. It’s good yes. Now we need to create a more honest and real economy.

    We have the corruption issue very important, it seems to be improving.

    Is the first time in the history of the country that:
    – Public expenses is reducted
    – Public investing funds are investigated and audited
    – public companies are audited for HHRR that do not work at all.
    – transport union (that is one of the worst country MOB) is being affected so its power is decided with other parties.
    – house mortgages are returning

    In my opinion things are going better. The president is the crazy guy that we need, because he’s doing the things that no one would do, because it means to go against the status quo. The other “problem” is that he says his opinion no matter if it’s popular or not. I like that.

    I don’t agree 100% with him, but is many the key changes we need.

  4. If you compare to October-November it’s way worse now. The only thing is the promise made by Milei. But most of us know politicians and their “honest words”. Most likely it’ll only get worse and worse.

    Still I hope I am wrong. Hope dies the last.

  5. >is the economy and welfare really better than under the previous government?

    It’s better to see prices rising up lower than before (it was peak craziness even for us who are used to high inflation) but in practice it’s hard to feel the macroeconomic improvement in “everyday” terms. Pretty much because in search of reaching the goal, this government is fixing long time “pro-inflation” decisions in a really short time. Things like relative prices back to normal, smaller public services subsidies, increasing central bank reserves, and normalized exchange rate are pretty much always contacting to the economy and hard for people wallets but necessary

    Is it everything fixed? not yet

    is it a perfect system? not even close

    Milei’s public opinion still equal or better than last year tho

    >Do you have trust that Milei’s policy is going to get Argentina into a stable economy?

    I trust no one. All I know is that previous administration was doing absolutely 0 about fixing every problem they found or even the created by themselves. At least this party is doing something (painful but *again* necessary) to put us back on track. It’s a long way, time will tell

  6. People can’t understand that if it takes you 30 minutes to destroy something it won’t take 10 seconds to rebuild what you have destroyed, it’s probably gonna take you longer to rebuild, I mean a lot more, that’s my take and it’s not just the economy it’s the education the infrastructure and a lot more, its like leaving drugs and you are in debt, its not gonna be easy.

  7. We went from employing a Keynesian economic model to a liberal one. 
     We stopped printing money so that caused economy to freeze and employment went down. Many people both in the public and private sector became jobless. Being jobless for a long period of time is no joke.

    That being said, most of us have faith that once we get a stable and trustworthy currency our economy will start to grow back again.

  8. >life has really gotten better in Argentina.

    Life its objectively getting worse for most people.

    For example: While 4% its a good number in our context, is still around 60% annual and unless your salary can keep up with that (most can not), you are a bit worse every month. The reason for that is that a decrease in inflation does not imply that prices are falling; rather, it indicates that most prices are rising slower. Things wont get better for the common folk until salaries can keep up or surpass the inflation rate.

    Still, this doesn’t mean that the government is doing things wrong (at least most of them, i have my observations). It just mean that economy stabilizing doesn’t necessarily implies that most people is doing better.

    This shouldn’t new for most people, as this is -in general terms- just what Milei promised.

    >is the economy and welfare really better than under the previous government?

    Economy is doing better, no doubt. At least at a Macro level, its very noticiable that inflation is going down.

    I quitted to my job at commerce a few months ago but still can tell the difference. During the worst times in november of last year, we had to change the prices up to twice a day (Normally 1 or 2 times peer week). Now, I can tell you the price of 1kg of flour even if I haven’t bought any this month.

    Welfare is doing worst. Its noticiable that it isn’t as extensive as it was previously and the government is cutting or/and debudgeting social programs and institutions. There is the argument if that social expending was necessary in the first place or if the current expending is more effective/optimal. However, objectively speaking, there is less social spending now than before and that is just a fact.

    Also, as a personal note, i must say that i have many relatives working at public health, education, etc and they complain of underbudgeting, bad salaries, lack of work materials, etc. While its true that all of this was also a complain with previous gov, they claim now is worst.. but you’ll have to take my word for that.

  9. Antes de estaba medianamente bien a un costo cada vez mas alto, ahora se está cada vez menos mal a un costo cada vez mas bajo, se está bastante mal, y la mejora llega lento, pero los motivos por los que se mejoran son muy sostenibles en el tiempo, no tienen costo tiene superavit.

    Ave Miller !!

  10. English is so easy to speak that it’s a laugh.
    Butterfly I think with this government is that nobody likes him 🤷🏻‍♀️but anyway we need it.
    People get more poor ,like really poor everyday, rich people get richer 🤷🏻‍♀️
    And economy is down to blues…
    But we have resist 80 years of poor economy… We can keep in resist this one too 🫡 but nobody likes him🫠 I don’t like him 🫠 I think he’s stupid 🤣 but he’s now on the power, so how stupid can be…??
    Whatever the thing is that Argentina it’s down to blues because of him.

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