Buenos Aires Times

argentina THE PRICE OF CRISIS

Frustration evident as purchasing power falls

Discontent is widespread on the streets of the nation’s capital, as increasing prices hit the wallets of Argentines.

Saturday 15 September, 2018
People have a snack at Los Piletones soup kitchen, run by social activists in the Villa Soldati neighbourhood of Buenos Aires.
People have a snack at Los Piletones soup kitchen, run by social activists in the Villa Soldati neighbourhood of Buenos Aires. Foto:AFP/ JUAN MABROMATA

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Every morning, Ezequiel González takes a twohour bus ride from his Buenos Aires suburb to the City hospital where he’s in charge of maintenance. And like many, he is feeling firsthand the pinch of government austerity measures.

Even working the maximum possible overtime, he earns 20,000 pesos (around US$500) a month – which is not enough to afford the meat for the asado that brings his family together on Sundays.

“That’s just for birthdays. Meat has become too expensive,” González complains. “Enough. We can’t keep living in a state of permanent sacrifice, the price of meat is going up every day.”

The economy is in a fragile state. The currency has lost more than 50 percent of its value against the dollar since the start of the year, inflation is due to surpass 40 percent by the end of 2018 and interest rates have been hiked to a world-high 60 percent.

In a bid to steady the ship, President Mauricio Macri agreed a US$50-billion loan with the International Monetary Fund (IMF) in June, but the outlook has continued to deteriorate.

“The situation worsens every day, I don’t know how all this will end,” worried González.

PROTESTS AND IRE

Public ire is directed in equal measure at the government and the IMF, with daily street protests.

“IMF Out!” messages adorn many walls while some protesters have taken to banging cooking pots in a pointed reference to them being underused for their main purpose.

It’s not quite a repeat of the street protests from the economic crisis of 2001, but discontent is widespread.

“I’m beside myself. I feel helpless, I’m afraid of being hungry and unable to pay for my medication once I’m retired a year from now,” said Garciela Pérez, a 64-year-old teacher.

“People have been waiting two years for things to get better, we’re losing patience, it seems like those governing us aren’t up to the economic challenges,” said 50-year-old Antonio Buffo, a newspaper stall owner.

The economy reacted particularly badly last month to news that Macri had asked the IMF to speed up disbursements of the remaining US$35 billion in loans, the next US$3 billion of which wasn’t due until November.

Even new austerity measures announced last week, slashing the government’s number of ministries by half and increasing duties for grain exporters, haven’t reversed the trend.

And this in the year Argentina hosts the G20 meetings of the world’s largest economies.

“This government, they’re leaders who govern for the rich,” said an angry Edith Zaida, a domestic employee who works nights looking after an elderly lady.

The 42-year-old has to support four children aged between five and 14 on the minimum wage of 12,000 pesos a month. She lives in Tigre, 30 kilometres from the capital, and spends at least three hours a day in public transport.

She is nostalgic for the government that preceded Macri’s – and which the current leader blames for Argentina’s economic woes.

“Cristina [Fernández de] Kirchner did more to look after the poor. Maybe she stole, but we had something to eat when she was president,” added Zaida, referring to the cases against the former president investigating the alleged taking of millions of dollars in bribes. “I’m very worried. Sometimes I cry. I want to leave the country.”

‘ANOTHER CRISIS’

“Another crisis,” sighed Imelda Rodríguez, 43, who works in administration. “Things get harder every day.”

She voted for Macri in 2015 and hates Fernández de Kirchner. “I’m disappointed but there isn’t a better political alternative. With all the sacrifices they’re asking for, I hope that at least there will be some results in the long term.”

Lirio Tevez, 69, retired three years ago but had to go back to work for a funeral services company as his devalued pension of 12,500 pesos barely covered his 10,000-peso rent.

“I have to keep working to be able to live. They’ve been telling us for years that things will improve but a litre of milk now costs 50 pesos,” he said, smiling.

“What I fear most... is looting. There were some instances recently and a kid died,” he added, referring to the case of a 13-year-old who was killed as he tried to rob a supermarket in Chaco, one of the country’s poorest regions.

“The IMF are governing us,” he said. “I’ve had enough!”

BY ALEXANDRE PEYRILLE

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