Since taking office in December 2023, President Javier Milei has implemented radical economic reforms to stabilize Argentina’s long-struggling economy. While these policies have earned him praise from some sectors, they have also triggered widespread criticism, particularly for their impact on the nation’s retirees, who have bore the brunt of the austerity measures.
Austerity Measures and Their Impact on Retirees
Central to Milei’s economic agenda is a deep austerity plan involving massive cuts to public spending. Roughly 38% of these cuts have targeted the pension system, making retirees the most affected demographic.
In September 2024, Milei vetoed a law passed by Congress that would have increased pensions by 8%, arguing that the fiscal burden was unsustainable. As a result, many retirees now receive pensions far below the cost of living. For example, the minimum pension is approximately 225,454 pesos (about US$230), while the basic basket of goods for retirees costs around 685,041 pesos (roughly US$700).
A Critical Lens on Milei’s Reforms
Gabriel Vommaro, a political scientist at the University of San Martín, describes retirees as the “big losers” under Milei’s presidency in an interview to AFP. He notes that the fiscal adjustments have disproportionately affected pensioners, with significant portions of the cuts falling on their benefits. Vommaro warns that while the reforms aim to stabilize public finances, they may erode the social contract that protects Argentina’s most vulnerable citizens. “Targeting pensioners undermines public trust and deepens social inequality,” he states.
Alfredo Serrano, director of the Latin American Geopolitical Strategic Center (CELAG), echoes this criticism. He argues that Milei’s agenda represents “a rollback of rights in the broadest sense.”
“When he speaks of the State’s withdrawal, he is talking about the withdrawal of rights,” Serrano says. “He speaks of freedom filled with fallacies… He is trying to reshape Argentina’s common sense, making society internalize this regression of rights as something natural.”
Serrano adds, however, that Argentina still has “a deeply rooted progressive identity,” and despite Milei’s efforts, “he has not yet won the pulse of the country.”
A Nation at a Crossroads
Nicknamed “la motosierra”—the chainsaw—Milei’s sweeping cuts have dismantled ministries, social support centers, and institutions. His administration has paralyzed public education, healthcare, and pensions, leading to rising unemployment and poverty. For many, this represents a stark reversal from Argentina’s historic role as a democratic and social welfare benchmark in the region.
While President Milei’s reforms may satisfy fiscal conservatives and international markets, they have inflicted heavy costs on Argentina’s retirees. The current trajectory risks deepening poverty and social unrest without a more balanced approach. Whether the government will adjust course to protect its elderly population remains an open and urgent question.
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The article above was edited by Beatriz Gatz.
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