2024-03-16 21:12:40
During the week, the opening of imports of food, beverages, cleaning products, personal care and hygiene, and medicines was determined. According to official information, in practice this initiative is manifested in the reduction of access periods to the exchange market for the payment of purchases abroad. In addition, the suspension of taxes levied on these operations is established.
It is worth remembering that the Minister of Economy, Luis Caputo, placed particular emphasis on the fact that the prices of mass consumption products do not reflect the new economic reality today. Hence, official sources stated that the defined measure “will encourage the import of basic basket products whose price in the local market is higher than the international price, which will contribute to greater competition and, consequently, a drop in inflation and the price level of these products.
An initiative that contradicts the official view that inflation is a strictly monetary phenomenon. In a concentrated industry, such as the food industry, the distributive struggle as an inflationary cause plays a predominant role.
In response to the aforementioned measure, the Assembly of Small and Medium Entrepreneurs (APYME) issued a statement in which it states that “it is intended to discipline large corporations by resorting to import liberalization, (but) with tax benefits for multinationals that will enter their products to the country, coming from the headquarters of those same companies that increase prices locally. That is, foreign labor benefits while local production and labor are dealt a knockout blow.
Additionally, these policies go once morest what is being done in various places around the world. In his recent annual address to Congress, the president of the United States, Joe Biden, reviewed his management. He highlighted, among other issues, the “historical growth in employment”, the increase in the number of citizens with health coverage, the increase in salaries (while inflation decreases) and made it clear that “now instead of importing foreign products and export American jobs we are exporting American products and creating jobs in the United States.
Biden emphasized compliance with the Buy American rule, an equivalent to the Argentine Buy (law repealed in DNU 70/23 signed by President Javier Milei), in which the United States establishes that expenses and investments at the federal level must be made with products manufactured in that country, by American workers.
In tax matters, he proposed “that large corporations and the very wealthy begin to pay their fair share” and “increase the minimum business tax to at least 21% and 25% for billionaires.” “A fair tax code is the way we invest in the things that make a country great: health care, education, defense,” the US president concluded.
The expressions expressed by businessmen and officials at the meeting organized by AmCham (United States Chamber of Commerce in Argentina) go in another direction. The president of the Chamber, Facundo Gómez Minujín, maintained that “they wanted us to believe that the State was the only one capable of moving Argentina forward,” and continued: “but no, the only sector capable of generating wealth is the private sector.” . “It is companies that produce goods and services, those that energize the economy and are capable of adding value and generating quality employment.” Total coincidence with the ideas presented in President Milei’s conferences.
Gómez Minujín also stated that “an economy based on subsidies for food, health, education, security, transportation, housing, fuel, electricity and gas is not sustainable.” A different vision than that of the president of the country to which the companies he represents belong.
While in Argentina the government seeks to reduce the tax burden of large companies, in the European Union (EU) the minimum tax rate of 15% has been applied since last January for multinational companies with activities in that region. The EU Commissioner for the Economy, Paolo Gentiloni, noted that “the entry into force in Europe and in territories around the world of this historic reform constitutes an important step towards a more equitable system of corporate taxation.” Gentiloni encourages the rest of the countries to implement these tax reforms that might “generate an additional $220 billion a year to help countries around the world finance crucial investments and high-quality public services.”
Inflation
The monthly variation of the National CPI for February was known these days: 13.2%.
The accumulated inflation during the first two months of 2024 is 36.6% while in the same period last year it was 13.1%. Far from the “numerazo” qualification that President Milei made.
Although it is true that during the previous government the rise in prices was partially contained and inflation was high, it is not comparable with the current situation. At that time, various public policies were carried out that mitigated the effects of inflation. It might be argued whether they were sufficient, but they were clearly at the antipodes of what libertarian management has been doing.
In its strong conviction that the prices of goods and services in an economy must be left to the “free play of supply and demand” (a free play that only exists in theory but does not adjust to reality), the The government decided to eliminate transportation subsidies and controls on the rates of prepaid medicine companies, and on the prices of fuel, food, medicines and education, among others.
With the recession and inflation, tied to the strong loss of income, especially from work and pensions, it is understood that UNICEF Argentina has indicated in one of its latest reports that, according to its forecasts for the first quarter of 2024, In our country, child poverty would reach values of 70% (currently, at an already very worrying 57%) and extreme poverty 34%. It is mainly based on the fact that the national budget for children shows, to date, a drop of 75% in real terms.
Fiscal balance is desirable, but we must aim for it by increasing income and not by cutting fundamental expenses. If it continues with current policies, Milei’s government will lead to an Argentina with greater unemployment, poverty and an increasingly reduced quality of life. It is essential, therefore, through democratic mechanisms to establish limits on the different initiatives proposed by the ruling party and that affect the great majorities.
In this regard, the Senate’s rejection of DNU 70/2023 makes it clear that there is resistance to threats and the imposition of issues (in search of an eventual “agreement”) that attempt to install policies that will negatively affect the lives of Argentines and Argentina. «
1710635951
#Contrary #social #welfare
