Having campaigned promising to end inflation through dollarization, Milei keeps secret what his specific measures will be upon taking office and makes partial statements that anticipate a different start to his administration than expected. The representative of La Libertad Avanza confirmed that will eliminate the Ministry of Commerce, while stating that it will seek to release as many prices as possible. Taking into account his statements that stagflation will occur, the next president presents an outlook for the coming months with strong price increases.
In dialogue with El Observador 107.9, this Wednesday, Milei was asked if he would abolish the Secretariat of Internal Trade and responded: “Obviously, he doesn’t have to be doing that regulate prices, it seems like an aberration to me“. The liberal added: “It will not exist in the sense that governments historically gave it. All the prices I can from the economy, I’m going to release them. There are some who still cannot do it due to the characteristics of the bombs that the Government planted.”
With inflation above 142% year-on-year, it is clear that The policies applied by Sergio Massa did not stop the rise in prices. To comply with the IMF’s demands, the Unión por la Patria candidate raised service rates and carried out a strong devaluation the day after the PASO. After the result of the runoff, a new jump occurred with the sharp increase in the prices of food and other products such as medicines or fuel. The firms that centralize sales in supermarkets presented lists with significant increases, Arcor increased the entire price list by 35%, Unilever by 40% and Molinos also by 40%. And according to Milei’s statements this could be just the beginning.
The president of the Argentine Chamber of Commerce (CAC), Mario Grinman, celebrated Milei’s statements expressing that the change of government: “is an opportunity to reconfigure the area in question so that it focuses on promoting the development of private initiative, the true engine of the economic and social progress of nations, removing unnecessary obstacles.” Freedom to highlight is well regarded by businessmen.
Food companies have already been doing business by raising prices. Arcor earned more than $25 billion in the first half of the year and Río de la Plata Mills more than $9,000 million. But for these monopolies there is no limit when it comes to seeking to increase your profitability.
Milei takes advantage of the discredit of the Secretariat to continue attacking the income of workers and their families. Furthermore, the statements of the person who will take office on December 10 raise doubts about the jobs of the workers who are part of the Ministry of Commerce.
The handling against consumers by the directors of the area was so evident during the government of Alberto Fernández that four officials at the head of the secretariat had to resign successively: Paula Español, Roberto Feletti, Guillermo Hang and Martín Pollera, and leave it. by Matías Tombolini. Meanwhile, the program Prices Care It had been launched at the end of 2013, during the government of Cristina Kirchner and in November 2022, it was relaunched as Fair Prices which currently (according to signed agreements) sets prices on about two thousand products in the basic basket. The program is valid until December 31, but if complaints about shortages and non-compliance were common during the last decade, large companies are taking advantage of the transition to speculate even more with prices.
In the interview, Milei hinted at some more definitions when he expressed: “We are making fine-tuning adjustments, in such a way as to achieve the best possible results based on the monstrous inheritance that we are receiving. It is the worst inheritance of democracy, without a doubt.” “We have put together the central package of measures to cut the fiscal deficit and deregulate the economy.” The adjustment of spending combined with the end of regulations would imply an increase in unemployment, lower wages and increased rates. A combo that seems difficult to apply and that will generate resistance of all kinds.
Instead of the failed price controls carried out by Peronism, it is essential to move towards formation of worker and consumer committees for price control. From production sites, through all distribution channels to sales. Likewise, we must raise the demand for opening the accounting records of all companies that claim that they have to adjust their prices. We must confront the large speculative businessmen who favor Milei’s measures.
Source: www.laizquierdadiario.com
