A report of the Viewpoint of Current Events, Work and the Economy (MATE) concludes that in the first ten months of government of Javier Miley private sector workers they lost on average a million pesos of purchasing power, while those in the public sector accumulated a loss of almost three million each.
This is the result of the loss month by month, with parity updates behind inflation. The government now wants to put a ceiling for joint ventures even greater: that in no case will it exceed 1% per month in 2025, deepening the accumulated loss in the face of inflation that is between 2.5% and 3% per month.
“In the first ten months of Milei’s mandate, each worker in the private sector lost one million pesos of income due to the drop in wages. At the same time, during the Macri government, each employee had lost $1.2 million” , indicates the graphic report published on networks.
However, the most affected were public sector salaries. “The state salary was the most attacked during this period: every state employee lost, on average, almost 3 million pesos in just 10 months of office. It is double what he had lost in the first ten months of government of Macri,” details MATE.
According to the latest data published from Indec that correspond to the month of October 2024los wages of the entire working class, formal and informal, they lost 3.9% compared to November 2023. However, “the offensive against salaries began with the result of the PASO in 2023,” they remember from MATE. The former official candidate at that time was also the Minister of Economy, Sergio Massawho had promised the IMF to devalue the peso after the elections and did so in the month of August.
Then, in December 2023 with the megadevaluation of Luis CaputoMinister of Economy of the Milei government, “the salary received the final blow,” and since then he has not been able to recover the lost purchasing power.
The decline is uneven depending on the sectors, informal and public workers are the most affected. The purchasing power of the formal private sector was 0.3% behind its level in November 2023 in October. In relation to October 2015, the drop amounts to 23.8%.
Meanwhile, in the public sector (at all levels, national, provincial and municipal) the purchasing power of the salary showed a collapse in October of 14.8% in relation to November 2023. The drop in relation to 2015 is 39.6% (October 2024 versus October 2015).
Inflation slowed down, but it is undervalued based on the methodological outdatedness of the INDEC and if it were updated it would be higher due to the greater weight that public services have in the families’ consumption basket than a few years ago. This also has consequences on the fall in purchasing power, meaning that the fall in purchasing power would be greater. According to a CEPA report, in September in relation to November 2023, if inflation measured with the National Household Expenditure Survey (ENGHo 2017/18) were used, the real wage losses would be: -9.1% the registered private sector, -22.5% the public, -27.2% the unregistered.
On the first business day of 2025, the shares of listed companies multiplied, in support of Milei’s brutal fiscal adjustment measures and waiting for the government to reach a new agreement with the IMF. The Government wants to maintain the financial party and for that it needs external financing. A party so that the same people as always win, the big businessmen, the banks and the speculators.
Source: www.laizquierdadiario.com
