At a crossroads: Argentinians elect new head of state

class=”sc-29f61514-0 fwWrRV”>

In Sunday’s second election, Economy Minister Sergio Massa of the ruling Peronists will face libertarian populist Javier Milei. In the most recent polls, the two were virtually neck-and-neck. About 35 million people are called to vote. Voting is mandatory.

The self-described ‘anarcho-capitalist’ Milei promises a radical change: he wants to introduce the US dollar as legal tender, abolish the central bank and many ministries and radically cut back on social spending. “No one with such extreme views on economic issues has ever been elected president of a South American country,” says economist Mark Weisbrot of the American research institute Center for Economic and Policy Research. “It barely recognizes a legitimate role for government in some of the key policy areas that most people consider necessary for a democratic, humane and stable society.”

The radical healing planned by Milei is particularly well received by young people. Many only know life in a constant crisis situation, are disappointed in the political establishment and finally want a fresh start.

Government candidate Massa, on the other hand, is likely to fundamentally continue the current policy of massive state intervention in the economy and extensive social programs. Recently he has dug deep into the public purse to keep voters happy. He ordered massive new hiring in the public sector, approved higher income tax exemptions and granted one-off payments to employees and retirees. According to media reports, Massa has pumped the equivalent of several billion euros into the economy in recent months, about 1.5 percent of gross domestic product. The moderate Peronist recently expressed fears of a social lockdown if his rival Milei were to win the elections.

South America’s second-largest economy is in deep economic crisis. The inflation rate is over 140 percent and about 40 percent of people in the once wealthy country live below the poverty line. Argentina suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of much tax revenue. The national currency, the peso, continues to lose value against the US dollar and the mountain of debt continues to grow.

(SDA)

Source: Blick