Argentina: Macri's Neoliberal Fantasies

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A Socialist Project e-bulletin ... No. 1621 ... June 13, 2018

Argentina: Macri's Neoliberal Fantasies

Claudio Katz

In the middle of his term, Argentinian president Mauricio Macri cannot hide the monumental abyss between his promises and reality. The promise was of an influx of dollars to lower inflation, with high growth, job creation, an entrepreneurial boom and eradication of social assistance. A drastic reduction of the fiscal deficit and a flow of money for public works through the ending of corruption was also predicted. It was also proclaimed that the "return to the world" would be rewarded with huge productive financing and an expansion of exports.

The failure of these forecasts was very visible from the beginning. Hence the government moved the take-off to the second half of the year and then postponed it to... the next year. Now it disguises his meagre results with new tricks.

The spokespersons for the ruling party, Cambiemos, present the reduction of inflation, which initially doubled, as a great achievement. The percentage over the two-year period reached the very high level of 73%. The goal for 2016 was 12% and it was 41% and the guideline of 17% for the following year ended at 24%. With the single exception of a peak in 2014 (38%), inflation under the Propuesta Republicana, (PRO exceeded all averages since 1991). The absence of credible data during the preceding decade does not preclude corroborating that conclusion, with numerous alternative estimates.

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