The Government announced a series of economic measures that, like a boomerang, returned in the form of resistance and criticism from various sectors. Meanwhile, the definitive scrutiny of the August primaries was revealed, revealing a greater closeness between the main candidates. And a consultant presented a report that accounts for the growth in the number of Argentines who have more than one job.
After the devaluation decided on August 14, in which the value of the official dollar increased by more than 20%, the Government suggested the imminent announcement of economic relief measures. They finally arrived this week, but they weren’t met with a unanimously positive reception. On the contrary, they received criticism from those affected sectors, precisely from those who must assume the costs and benefit from them, for perceiving them as insufficient.
The National Electoral Chamber released the results of the final scrutiny of the August presidential primaries, which are the ones that have legal value. Although the forecast count had shown a Javier Milei above 30%, he finally fell below that sort of psychological border.
The consultancy Ecolatina presented a study that shows that almost 10% of the economically active population in Argentina has more than one job. A statistic that is especially marked —and seems surprising— among households in the highest decile.
The results of the official survey on substance use were also known, which shows that alcohol continues to be the main substance consumed in the country.
Finally, the Argentine Football Association launched a controversial membership platform.
Resisted economic measures
In recent days, the Minister of the Economy and presidential candidate, Sergio Massa, announced a series of economic relief measures, which will last until after the first round of elections on October 22, 2023.
They range from the payment of fixed sums for workers in the private sectorfrom the public sector and for retirees and beneficiaries of social plans, to temporary tax exemptions for self-employed workers with lower incomes and soft loans for employees and retirees.
A part of the costs will be paid by the private sector, the other by the State. Regarding the first case, there were complaints about the imposition by the Government of extraordinary expenditures. In turn, union sectors indicated that the figures are very low (30,000 fixed-sum pesos for workers in September and October, which is equivalent to about 40 dollars at the unofficial exchange rate). Regarding payments for state workers, heads of local governments, such as municipalities, also expressed discomfort, arguing lack of funds. Of the 23 provinces of the country, plus the City of Buenos Aires, 14 decided that they would not pay the fixed sum provided by the national government.
Massa also announced a price control scheme through agreements with food and hygiene companies and supermarkets, to try to curb the inflation that is currently above 113% per year and in August it is expected to exceed 10% per month. To this is added the announcement that there will be no increases in fuels or medicines until the beginning of November, nor in private health. However, private health insurance did apply increases for charges that expire in September.
The presidential candidates of the two main opposition forces, Javier Milei and Patricia Bullrich, criticized the government’s measures.
Milei stated in X: “Different results cannot be expected by doing the same thing as always. Ford Model T Keynesianism again. It always fails and will fail again. The issue is time, that is whether it explodes before or after the election.”
You can’t expect different results doing the same old thing.
Model T Keynesianism again. It always fails and will fail again. The issue is time, this is whether it explodes before or after the election.
I hope more lions wake up so they are off-side.
VLLC https://t.co/yEISmJ7vL1— Javier Milei (@JMilei) August 27, 2023
Bullrich, for his part, wrote: “Economy Minister Sergio Massa makes fun of everyone. To push his candidacy, he took a series of measures that inflation will eat up in a few days. This Argentina suffers and the problems are not resolved with make-up and more broadcast”.
MASSA KEEPS MOCKING PEOPLE
Economy Minister Sergio Massa makes fun of everyone. To push his candidacy, he took a series of measures that inflation is going to eat in a few days. This Argentina suffers and problems are not solved with make-up and more broadcasting.…
— Patricia Bullrich (@PatoBullrich) August 27, 2023
Definitive scrutiny of the PASO
The results of the Simultaneous and Compulsory Open Primaries (PASO), which took place on August 13, were tighter than it seemed at first, according to the final scrutiny data released this week by the National Electoral Chamber (CNE). ).
The forecast count had given 30.4% of the votes to the presidential candidate javier mileiof Freedom Advances, but according to the definitive data it obtained 29.86%. The centre-right coalition Together for Change, dropped from 28.27% to 28% (Patricia Bullrich, who won the internal one, obtained 16.81% of the total votes); while the ruling party Union for the Homeland went from 27.27% to 28.28% (the winner of that internal, Sergio Massa, received 21.43% of the total votes).
Thus, facing the generals of October 22, something similar to a three-thirds election between the main forces (There are two other candidates, but very marginal due to their electoral volume). One unknown is what the 11.19% who voted internally for Together for Change will do to the defeated Horacio Rodríguez Larreta: will they stay in the coalition or will their vote migrate? Added to this is great uncertainty regarding what the more than 30% of the register that did not vote in the PASO will do.
More moonlighting than unemployed
An investigation by the consultancy Ecolatina presents some revealing data about the current state of the labor market in Argentina. When comparing with 2018, he realizes that if then there were 30% more unemployed people than multi-employees (with more than one job), currently the multi-employed are 15% more than the unemployed. Of the total economically active population, estimates Ecolatina, almost 10% have more than one job.
Multiple employment is part of a phenomenon of increased workload within households, which is also revealed in the effect of the additional worker. This occurs when a member of the family who usually did not work goes out to look for a job with the aim of propping up the household income.
A peculiarity that Ecolatina’s work reveals is that moonlighting grew notably among high-income families, something that the consultant considers to be due to the fact that they are trying to maintain their standard of living in a context of loss of the purchasing power of wages. It also grew markedly between women and youth. Among the first, the increase was more than 30% compared to 2018; and between the seconds, from 37%.
National survey on substance use
Alcohol is the main psychoactive substance consumed in Argentina, according to the results of the National Survey on Consumption and Care Practices 2022, recently released by the National Institute of Statistics and Censuses (INDEC). He 51.2% of those surveyed said they had consumed alcohol at some time in the last monthwhile 23.3% said they had used tobacco and 8.1% marijuana. 5.1% said they had used cocaine at some time in their lives.
The consumption of all the substances surveyed is higher in men, except in the case of tranquilizers.
The AFA launched a controversial membership system
The Argentine Football Association (AFA) launched a platform, named AFA ID, a kind of membership scheme. Those interested can join in one of the three categories of the system: bronze, silver or gold.
Among other things, the bronze category has an annual cost of 24,000 pesos (about USD 33 at the parallel exchange rate) and gives priority when trying to purchase tickets to watch matches of the Argentine team (although it does not cover its cost); the silver is worth 1.9 million pesos (USD 2,600) and includes a place in a preferential audience for the nine qualifying matches that the national team will play at home for the 2026 World Cup; and the gold is priced at 4.9 million pesos (USD 6,700) and gives access to a preferential side audience for those matches.
The system caused controversy, because by guaranteeing tickets to gold and silver members and giving purchase priority to bronze members, it potentially leaves anyone who does not join the platform without access.
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