Inflation, salaries, income and debt: the economic axes of Argentina’s President Fernández

RIO DE JANEIRO, BRAZIL – President Alberto Fernández spoke yesterday (17) in Plaza de Mayo during the Militancy Day ceremony, focusing on the government’s economic policies, as a means of relaunching the government’s mandate.

In this speech, he stressed that “this year salaries will beat inflation” and added that “the most important thing is that the salaries of those who work will no longer pay income tax.” However, he stressed that “we still have many battles to fight.”

“The first goal is to recover the economy once and for all, to make it grow, to fill the industry with workers, to make the countryside grow, so that the income generated may be distributed equally among all Argentines,” the head of state said before a crowd that came to downtown Buenos Aires to support the Frente de Todos administration and, in particular, Fernández himself.

The economy is currently recovering and, according to official figures, it could reach a 9% growth rate, which would allow rebounding from the sharp drop triggered by the pandemic and the quarantine in 2020. From the countryside to industry, numerous sectors are posting better figures than in 2019. However, the government’s main concern is the price increase, the recomposition of salaries and the debt.

“This year wages are going to beat inflation, the most important aspect is that the salary of those who work will no longer pay income tax. We still have many battles to fight, to put an end to the debt, to fight the price makers who increase prices daily, to control them and to tell them it is enough,” the president said.

The total registered wage index posted a monthly increase of 4.7% in September, according to Indec statistics institute. Likewise, the Total Wages Index registered an increase of 4% in September 2021 with respect to the previous month. The institution led by Marco Lavagna announced a few days ago that the Total Registered Wages Index accumulated an increase of 55.4% over the past 12 months, above the inter-annual inflation which in October was 52.1%, lower than the 52.5% recorded in September.

Accompanied by representatives of the CGT, social movements, mayors, Kirchnerist and Peronist sectors, the president stated that one of his commitments is to incorporate those who currently receive state benefits into the private sector. The goal is not only to reduce public spending but also to promote the creation of new jobs in companies.

In this respect, he emphasized the importance of “setting plans aside” and that “those who have plans should have a decent job.” Just weeks ago, through a decree and a bill, the government promoted the transformation of social plans into jobs.

In parallel, on Wednesday, the Economic and Social Council launched the call “PlanesxEmpleo,” which invites the presentation of proposals of ideas to design public policies aimed at the promotion of genuine employment, specifically focused on the reduction of informal work, from a territorial and sectorial development perspective.

“We are not for taking away rights, we are for giving more rights,” Fernández said while recalling that during his government “300,000 jobs were created in the private sector and the 600,000 jobs suspended were recovered”. “We will not stop until all Argentines find a job,” the president pointed out.

He also ratified his commitment for “the economy to work at 100% and for formal employment to recover” and called on the Frente de Todos (FdT) leadership to debate “face to face with the people, to be open, to give their opinion and to find consensus in order to move forward” with the management decisions.

“I want the time that is beginning not to be a time of silence among us,” the president reaffirmed.