Argentina’s poverty rate has surged to nearly 53% during the first six months of Javier Milei’s presidency, providing concrete evidence of the impact his stringent austerity measures are having on the population. This new figure, released by the national statistics agency on Thursday, marks the highest poverty level in two decades—a stark reminder of the country’s economic collapse 20 years ago. The data reveals that an additional 3.4 million Argentinians have been pushed into poverty this year alone.
Since assuming office in December, Milei, a self-proclaimed “anarcho-capitalist” known for his campaign theatrics involving a chainsaw symbolizing his plans to cut public spending, has implemented sweeping cuts to reduce chronic inflation and balance the budget. His administration has frozen pensions, cut welfare programs, halted all public works projects, and drastically reduced aid to soup kitchens. Additionally, tens of thousands of public sector employees have been laid off, while subsidies for energy and transportation have been slashed, driving up costs and diminishing purchasing power.
Kirsten Sehnbruch, a Latin America expert at the London School of Economics, expressed shock at the unprecedented spike in poverty rates. “This economic program is failing to protect the poor,” she stated. “The increase is simply staggering.”
However, Milei’s fiscal policies have been applauded by markets, investors, and the International Monetary Fund, to whom Argentina owes $43 billion. Monthly inflation has dropped from approximately 26% in December to around 4% in June, though annual inflation still exceeds 230%, one of the highest rates globally.
The austerity measures have sparked frustration and despair among ordinary Argentinians. María Claudia Albornoz, a community worker from Santa Fe, described the situation as “desperate.” “We see it in our empty fridges. Money is practically worthless now. Despite working three jobs, it’s still not enough,” she lamented.
Public sector workers have also been hit hard. Catalina, a 33-year-old employee at the Ministry of Justice, shared her distress after being informed that 2,500 workers would be laid off by year-end, with only a select few offered the chance to continue for half the pay. “I’ve been job-hunting for months with no success. I don’t know how I’ll cope. It’s terrifying,” she said.
Christopher Sabatini, a senior fellow for Latin America at Chatham House, acknowledged that economic decline is often a side effect of controlling inflation, citing similar historical downturns in Brazil and Bolivia. Still, he questioned whether Milei’s measures would yield the desired results. “It’s a precarious situation. The key question is whether this fiscal tightening will have any positive outcomes. Can he control public spending and stabilize the currency? Without that, he’s only deepening poverty,” he warned.
While Milei’s approval ratings were initially robust, public support has begun to wane. A survey published on Monday recorded a nearly 15% drop in September, the sharpest decline since he took office nine months ago. Recent polls indicate that concerns over inflation have now been eclipsed by fears of job insecurity and rising poverty.
“For a nation that has long identified as middle-class, this poverty rate is profoundly distressing,” Sabatini added.
In response, Milei’s presidential spokesperson, Manuel Adorni, blamed previous left-leaning administrations for the current crisis. “We inherited a catastrophic situation. They nearly made poverty universal in Argentina,” he said. “Any level of poverty is unacceptable, and we are doing everything we can to change it.”
