Javier Milei and Luis Caputo’s chainsaw moves forward. Thus, In the first eight months of the year there was a collapse in real terms in retirements and pensions, Progresar Scholarships, and transfers to universitiesaccording to a new report from the Congressional Budget Office (CBO).
The document indicates that “the real drop in spending was more pronounced in retirement and pensions and capital expenditures”, again the cut fell on retirement benefits. Despite the strong adjustment that the Government made to pensions, Milei vetoed the new retirement mobility.
The OPC report noted that Primary expenditure fell by 30.1% in real terms in the first eight months of the year. Among the further cuts In real terms in this period they are: transfers to provinces (82.8%); Potenciar Trabajo (60.2%); Becas Progresar (65.1%); energy subsidies (36.4%); transportation subsidies (35.6%); universities (30.1%), and retirements and pensions (20.8%).
Next week, Congress will discuss Milei’s veto of the increase for retirees and funding for universities. It is necessary to mobilize on Wednesday 11th at 13 hours to Congress together with the organizations of retirees, and other sectors to defeat the Government’s adjustment plan.
Targeting retirees and teachers
The president said this week in an interview that pensions, measured in dollars, had increased enormously and, on the other hand, that they had regained purchasing power. Once again Milei is lying.
The OPC report details that The average purchasing power of pensions for eight months of 2024 shows a real drop of 26.6% compared to the same period in 2023. Meanwhile, minimum wages (with bonuses) lost 16.7% in real terms.
The minimum pension in August was $295 thousand (with bonus included) while the basket of retirees, which is calculated by the Office of the Ombudsman for the Elderly of the City of Buenos Aires, is around $850 thousand. That is, This minimum income is only enough to live for ten days of the month.
It is worth clarifying that the adjustment for retirees did not begin in the last few months. Between 2015 and 2024, the maximum wages lost 53% of their purchasing power, the minimum wages (without bonus) fell 49% in real terms, while wages with bonus lost 33%. All employer governments looted the elderly.
Another affected sector is the university teachers and non-teaching staff. Thus, the document states that The amount allocated to the payment of salaries of teaching staff and senior authorities plummeted by 30.4% in real terms in the first eight months of the year; and Non-teaching staff salaries fell by 26.7% (taking into account the effect of inflation) over the same period. Meanwhile, financial assistance for university operations fell by 23.1% in real terms and financial assistance to university hospitals fell by 19.3% between January and August of this year.
This ongoing plundering will not go on. We must confront Milei’s austerity measures against the working people. Active workers, students and social organizations must accompany the retirees next Wednesday. It is necessary to force the trade unions to break their truce with the government through assemblies in the workplaces and put all the strength of the working class at the service of the latter and all the struggles that must be waged.
Source: www.laizquierdadiario.com
