The fallacies that justify the “Rodrigazo” of Milei and Caputo. Editorial of “El Círculo Rojo”, a program on La Izquierda Diario that broadcasts on Thursdays from 10 p.m. to midnight on Radio Con Vos, 89.9.

  • Passaron four days since the new Government took office and we already have before us a fierce adjustment plan against workers, the poor and the middle class. The orientation is very clear and those mainly affected are beginning to feel it while the winners celebrate it. The essential objective can be summarized in a phenomenal transfer of income from the popular majorities to different fractions of the dominant classes: the agro-export complex, in the first place, the main beneficiary of the devaluation; many other sectors of large businessmen due to the wage liquefaction that causes a devaluation of the magnitude of that decreed by the Government (118% increase in the price of the dollar) and, well, the creditors of the external debt, the main one the International Monetary Fundbecause much of the plan is ordered based on pay the fraudulent debt.
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  • To this we must add other measures that are already known and that go in the same direction: the decision to eliminate the formula for increasing pensions and replace it with an amount arbitrarily decided by the Executive and the promotion of reinstatement of income tax applied on salary (4th category) which in fact would imply a salary cut for a significant fraction of formal workers.
  • Let us add that the total liberation to any minimum price control It affects everyone and especially the middle classes, such as the increase in gasoline or prepaid medicine companies, to give just two examples. The same with the advanced what they want to do against the rental law to redesign a scheme that favors the real estate market and harms (even more) tenants.
  • Lastly, be careful the measures that are presented as “compensatory” (doubling of the AUH or increasing the feed card by 50%) They also involve adjustment, for the simple reason that these increases will be significantly lower than inflation (in two or three months they will be liquefied). Without taking into account that the Empower Work program will continue with the same 2023 budget: $73,000 for each beneficiary.
  • All this regressive redistribution of income means the denial of a great fallacy that dominated the last stage of the electoral campaign: There is money that will end up in the capital accounts and will come out of the pockets of the popular majorities.. Because inflation—and I say this because I heard people on TV cell phones saying “it’s what we got,” “it’s what it is”— Inflation is not a “natural phenomenon”, it is a deliberate policy to liquefy salary and income in general.
  • The second fallacy that was debunked with this adjustment is one that is repeated a lot these days, but it is very true: The adjustment is not paid by the “caste”, but by the people. It is an adjustment with the caste, in favor of the class and against the majorities. Caste had already disappeared from Milei’s speeches both in Congress and in the Casa Rosada.
  • A third denial or denial of the libertarian story could be linked to a combo of measures and proposals that radically changed or are directly relegated: for example, the dollarization and the closure of the Central Bank. The first is almost not talked about and the second is still very much in place and even with a “hold” on the dollar! The issue of privatizations was not among Minister Caputo’s announcements either. Be careful, I’m not saying that they have been deleted from their program, but that they were not part of the game for now (when they had promised crazy chainsaws) and that speaks of a relationship of forces. That is why they say that the bills “more than one bus, they will be several combis.”
  • But there are other twists or abrupt changes that show great differences between what was promised and what was agitated in the electoral campaign and what is beginning to be deployed by the Government that go towards a more conceptual aspect. For example, around the increase in taxes (in the case of withholdings) or the reinstatement of the income tax on salaries. Wave “nationalization” of private debt that the BCRA is going to do with a resolution that was issued yesterday that basically involves taking charge of the debt of private companies with foreign companies (many “intrafirms”) through a bond in dollars to be collected in cash in 2027. These measures (taxes were theft, according to old Milei) They deny that anti-State idea that was presented as an entity that oppressed everyone equally and many people. (workers or middle class) drowned by regressive taxes seemed true, real, he identified in part with those proposals. Well, Milei demonstrates that she is not coming to fight against the State that “oppresses us all”, Milei is coming to use the State to directly benefit a privileged social sector. It is no less a State, it is a new type of State.
  • Finally, an even more general question, but one that is at the core of the ideological approach of libertarians. Milei never tires of repeating the definition that he attributes to Alberto Benegas Lynch (son), which says: ‘Liberalism is the unrestricted respect for the life project of others, based on the principle of non-aggression, in defense of the right to life. , to freedom and property, whose fundamental institutions are private property, markets free of state intervention, free competition, division of labor and social cooperation. In general, this is accompanied by the principle of strictly complying with contracts and contracted obligations.
  • Well, all of these principles are being fiercely violated. Let’s start with the last thing, as Marcelo Falak asked in his daily Letra P newsletter: “Do pensions, mobility, salaries that should not be liquefied insanely, compensation and labor rights, the Employment Contract law fall into the category of “contract”?”
  • Secondly, both “unrestricted respect for the life project of the other as the principle of non-aggression” are being savagely violated because economic violence and terror are aggressive, perhaps among the worst forms of aggression, and because depriving the basic means of existence is the more open way of not respecting, indeed, of hindering the “life project of the other.”
  • And the last one, about the propertylet a withering response that Marx dedicated to all the Milei of life and that is updated like never before in these hours: “You are horrified that we want to abolish private property. But, in your society, private property is abolished for nine-tenths of its members; It exists precisely because it does not exist for those nine-tenths. They reproach us, therefore, for wanting to abolish a form of property that cannot exist on condition that the vast majority of society is deprived of all property.

  • Politics / Devaluation / Inflation / Karl Marx / Luis Caputo / Javier Milei / Libertarians


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