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forest444

(5,902 posts)
2. It's a massive transfer of wealth - only slightly milder than in 1981 and 2001.
Fri Jul 22, 2016, 06:18 PM
Jul 2016

Hi, Chimichurri. I'm sorry to hear that about your loved ones. I myself have relatives in Argentina (my parents were born there; they emigrated 30 years ago as a result of Martínez de Hoz's economic collapse), and a few of them have mentioned the same thing - especially those who own/manage small or medium businesses.

And yes: most of them voted for Signore Macri; almost all are now sorry they did.

The hardest-hit people have in fact been small business owners because utility bills are part of their monthly overhead and can't be easily reduced; no one, after all, walks into a store or office with no lights or heat. I understand businesses have been folding by the thousands in a way Argentina hasn't seen since 2002, leaving tens of thousands out of work - which, of course, increases dependence on public assistance (the very thing Macri pledged to reduce).

Basically, it's a massive transfer of wealth from the middle class to the elite: once, by way of the devaluation, which doubled inflation while lining the pockets of those holding dollars (or better still, dollar futures); and then again, with the cuts to utility and fare subsidies and deregulation of same, which is causing these huge tarifazos.

Put another way: Macri and his clique wrote themselves a huge check by devaluing the peso by 40% in one day (just as Alsogaray and the dictatorship did), and are now forcing people to write their corporate backers another huge check by way of 1000% higher rates and fares - checks which will mostly end up in Panama.

Bad for business, and definitely bad for people.

I understand the courts have blocked the water and gas hikes for now, and that's certainly reassuring. The people of Argentina have to make sure Macri abides, because no one else will.

Good meeting you, Chimichurri. Let's keep in touch.

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