Un país para el tercio de los amigos de Milei | En menos de un año, el modelo libertario relegó a los sectores vinculados al trabajo
Milei’s Economic Model Leaves Industry Out in the Cold
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Argentine industrialists are sounding the alarm, feeling increasingly sidelined by President Javier Milei’s economic policies.
While not explicitly stated, the message from this week’s Annual Union Industrial Argentina (UIA) conference was clear: the government’s economic vision doesn’t include them. Milei’s intentional absence from the event, coupled with his alleged instructions to Congressman josé Luis Espert to publicly criticize the UIA, has deepened the rift. Espert, a potential Buenos Aires gubernatorial candidate favored by Milei, took to social media, labeling industrialists “caraduras” (cheaters) who “always want something more to compete.”
This isn’t the first time Milei has clashed with industry leaders. During the industry Day celebration hosted by the UIA, he accused CEOs of “stealing” from the agricultural sector by seeking state protection.
Despite the growing tension, some industry insiders remain cautiously optimistic, echoing a sentiment expressed by former UIA president José Ignacio “Vasco” De Mendiguren: “They’re selling the rope to the hangman.”
A Divided Economy
Milei’s model, which prioritizes winners and losers, appears to exclude the UIA entirely. This approach threatens to create a deeply divided economy, benefiting a select few while leaving the majority of businesses and workers struggling.
This trend is already reflected in economic data. A forthcoming study by economist Martín Schorr and Lucía Ortega reveals a dramatic shift in the contribution of diffrent sectors to Argentina’s GDP.
Seven sectors, many focused on exports and speculation, have seen their share of GDP rise from 25% in 2023 to over 32% in 2024. This growth comes at the expense of nine other sectors, heavily reliant on labor, whose contribution has fallen from 75% to 67.9% of GDP.The Human Cost
These figures highlight Milei’s preference for specific sectors, neglecting those that drive employment and broader economic recovery.Industries like manufacturing, construction, and retail, which traditionally create jobs and fuel growth felt by everyday citizens, are being left behind.
The consequences of this approach are already being felt.As the government prioritizes a select few, the majority of Argentines face an uncertain future, raising concerns about the long-term stability and prosperity of the nation.
Milei’s Economic Policies Fuel Boom in Some sectors, While Others Struggle
Buenos Aires, Argentina – Argentina’s economic landscape is undergoing a dramatic shift under the leadership of President Javier Milei.A recent analysis of the country’s Gross Domestic Product (GDP) reveals a stark divide, with certain sectors experiencing significant growth while others face steep declines.
The analysis, based on data from the National Institute of Statistics and censuses (INDEC), highlights the impact of Milei’s economic policies on various industries. Notably,sectors like finance,agriculture,and transportation have seen a surge in their contribution to the GDP.
“The changes we’re seeing are unprecedented,” said one economist, who wished to remain anonymous.”Milei’s policies are clearly having a profound effect on the structure of the Argentine economy.”
winners and Losers
The analysis identifies two distinct groups within the Argentine economy: those benefiting from Milei’s policies and those struggling to adapt.
The sectors experiencing growth, accounting for 30% of the GDP, include:
Intermediation Financial: This sector, encompassing banks and other financial institutions, has seen a remarkable resurgence, jumping from 1.9% of the GDP under former President alberto Fernández to 4.8% under Milei.
Agriculture and Livestock: This vital sector has also witnessed significant growth, rising from 6.8% of the GDP under Fernández to 9.3% under Milei.
Transportation, Storage, and Communications: This sector, which benefited under former President Mauricio Macri, has seen a resurgence, increasing from 5.2% of the GDP under Fernández to 6% under Milei.
In contrast, sectors representing the remaining 70% of the GDP are facing challenges:
Hotels and restaurants: This sector has been hit hard by the loss of purchasing power and rising prices, leading to a decline in consumer spending. Education: The education sector is also struggling, with families facing financial constraints and a decline in enrollment.
Construction: This sector has been severely impacted by the government’s decision to cut back on public works projects.
* Manufacturing: The manufacturing sector, which had seen growth under Fernández, has experienced a setback under Milei, partly due to increased competition from imports.
The Road Ahead
The analysis paints a complex picture of Argentina’s economic future under milei. While some sectors are thriving, others are facing significant headwinds. The long-term consequences of these shifts remain to be seen.
As the Argentine economy continues to evolve, it will be crucial to monitor the impact of Milei’s policies on different sectors and to assess their overall effect on the nation’s economic well-being.
Milei’s Economic Shift: A New Libertarian Elite Emerges
Buenos Aires, Argentina – President Javier Milei’s radical economic policies are reshaping Argentina’s business landscape, ushering in a new era dominated by a “libertarian bourgeoisie.”
While some sectors, like oil and finance, are thriving under Milei’s laissez-faire approach, others are struggling to adapt. Construction, a key indicator of economic health, has seen its share of the GDP shrink from 4.6% to 3.5% as Milei took office. Similarly, the hospitality and restaurant industry has experienced a sharp decline, dropping from 2.4% to 2% of the GDP.
The public sector has also been significantly impacted by Milei’s austerity measures, with its contribution to the GDP falling from 8.3% to 6.9%.
This economic realignment reflects Milei’s close ties with specific business groups, frequently enough at the expense of others.
Gone are the days when figures like Paolo Rocca of Techint, Luis Pagani of Arcor, and representatives from the industrial SME sector, supermarkets, and the construction industry held sway. In their place,a new elite has emerged,composed of CEOs aligned with Milei’s libertarian ideology.
Leading this new guard are Marcos Galperín of Mercado libre and Martín Migoya of Globant, who head the Endeavor chamber of tech unicorns, effectively serving as Milei’s “AEA.”
Providing political backing is eduardo Elsztain,the multi-faceted entrepreneur and owner of IRSA,alongside influential figures in the oil sector,one of the few industries benefiting from Milei’s policies. Financial institutions and banks have also aligned themselves closely with the Central Bank, further solidifying this new power structure.
Milei’s economic experiment is still in its early stages, but its impact on Argentina’s business landscape is already profound.The rise of a libertarian elite signals a significant shift in the country’s economic and political dynamics. Only time will tell whether this new order will lead to sustained growth or exacerbate existing inequalities.
Argentina’s Industrial Sector on Edge: An Interview with Economist Dr. Maria Sanchez
NewsDirect3: Dr. Sanchez, thanks for joining us today. The relationship between president Milei and Argentina’s industrial sector seems to be deteriorating. Could you elaborate on the situation?
Dr. Sanchez: The rift is undeniable. Milei’s absence from the recent UIA conference and his reported instructions to Congressman Espert to criticize the industrialists paints a bleak picture. His accusations of “stealing” from the agricultural sector and his dismissal of their concerns are deeply concerning for industry leaders.
NewsDirect3: You mentioned the UIA conference. What was the overall sense among industrialists attending the event?
Dr. Sanchez: There’s a palpable sense of frustration and anxiety.While some remain cautiously optimistic, the feeling is that Milei’s economic model, which seems to prioritize certain sectors over others, leaves little room for conventional industries.
NewsDirect3: You’ve been studying the impact of Milei’s policies on the Argentinian economy. What are your key findings?
Dr. Sanchez: The data we’re seeing is stark.
We are witnessing a profound reshaping of Argentina’s economy. While sectors like finance,agriculture,and transport are surging, industries like manufacturing,construction,and retail—sectors traditionally vital for job creation and broad-based economic growth—are being marginalized.
NewsDirect3: This trend you describe seems to suggest a deeply divided economy. What are the potential consequences of such a division?
Dr. Sanchez:
This approach risks creating a perilous two-tiered society. We could see a small but powerful group benefitting immensely, while the majority of Argentines, particularly those reliant on employment in the struggling sectors, face an uncertain and potentially bleak future.
NewsDirect3:
Are there any potential paths to bridge this divide, to ensure a more inclusive economic recovery?
Dr. Sanchez:
Open dialog is crucial. The government needs to engage with all stakeholders, including the UIA and labor unions, to create policies that promote sustainable and equitable growth. Ignoring the concerns of entire sectors is a recipe for disaster in the long run.
NewsDirect3: Thank you for your insights, Dr. Sanchez.
Conclusion:
Dr. Sanchez’s analysis highlights the pressing concerns regarding the direction of Argentina’s economy under President Milei. While some sectors are thriving, the well-being of the majority of Argentines hangs in the balance. The coming months will be crucial to determine whether the government chooses a path of inclusive growth or further exacerbates the already existing economic divide.