The Minister of Economy, Luis Caputo, did not travel to Mar del Plata, but his voice was heard at the 59th IDEA Colloquium, one of the annual meetings of the country’s main businessmen. In a recorded message, Caputo assured: “Labor reform is essential because we come from an archaic, rigid and unpredictable regime, which you—businessmen—are the first to suffer. That is the reason why employment has not grown since 2011. We need a more agile labor regime.” The Government’s plan for large companies to increase their profits is to lower salaries even further and facilitate layoffs.
Meanwhile, the minister was “very busy” in Washington, participating in an event organized by JP Morgan, one of the banks where he was a manager before becoming an official. In a single day, he spoke before Argentine and North American millionaires, making it clear that Milei’s economic direction is at the service of big capital.
In addition, Caputo promised a tax reform that eliminates “distortive taxes”, reduces others and simplifies the tax system, under the argument of “promoting domestic savings and private investment.” “The Government no longer has a fiscal deficit; all that savings is going to be channeled into private sector investment,” he stated. Less taxes for corporations and more adjustments for health, housing and education.
In the midst of the financial crisis, he argued that Argentine “competitiveness” should not be based on the exchange rate, but on “deregulations, lower taxes, labor reform and financing at reasonable rates.” The irony is that while Caputo was talking about economic predictability, the wholesale dollar rose $22 (1.6%) in a single day, reaching $1,402, the highest level since the direct intervention of the North American Treasury began, which is failing to contain devaluation pressures.
The optimism of adjustment
Caputo even went so far as to maintain that “poverty was reduced by more than 26 points,” and that there would be a “recovery of real wages along with a reduction in taxes.” “It is clear that this is the path by which all Argentines are going to benefit,” he once again assured, but almost no workers believe in these predictions. The fall in purchasing power as a result of cuts in salaries, retirements and an economic plan on the brink of the abyss make making ends meet impossible for millions of Argentines.
After Caputo’s video, the businessmen applauded. Martín Ticinese, president of Cervecería y Maltería Quilmes, summarized the vision of a sector of economic power: “Efforts are being made, but it is not enough. A reform is needed. We trust that it will be done; without that, we cannot move to another level. If there is no growth, there is no investment and no employment is generated. We need conditions that put us on the same level, and structural reforms are essential.” The Government, businessmen, the IMF and the United States agree on this path, but they know that to move forward they must defeat the resistance of the workers and the people, something that is not easy.
Let the businessmen pay for the crises
While the government promises more “market freedom” and businessmen demand the elimination of labor rights, a study prepared by economists from the Left Front shows that a reduction in the working day to 6 hours, 5 days a week, with distribution of work in the 2% of the largest companies in the country, would allow the creation of one million jobs. The conclusion is clear, it is possible to generate employment without attacking rights, but neither Milei, nor the PRO, nor Peronism want to touch the profits of their business allies. They prefer to adjust those below rather than affect the privileges of those above.
Caputo’s speech before the owners of the country leaves no doubts, the direction of the government is to deepen dependency, indebtedness and surrender. Faced with this looting project, the alternative must be built from below, with mobilization and organization to fight for a solution based on the needs of the great majorities.
Source: www.laizquierdadiario.com
