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>Poverty, which has now reached very high levels, has never fallen below 25% in the last 40 years
A recent World Bank report identifies four factors that have hindered its reduction.
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First, high inflation particularly affects poorer families, who spend a larger share of their income on food and basic products.
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Second, much of the Argentine population works in the informal sector or as self-employed, with often precarious and poorly paid jobs.
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Third, although poverty is higher among children and young people, social spending is oriented towards the elderly population.
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Finally, extreme weather events, such as droughts and floods, disproportionately affect the most vulnerable population.
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With economic stabilization and inflation reduction, the Milei administration is taking an important step towards poverty reduction. However, fiscal consolidation is not protecting the weakest and cuts in spending on education and healthcare risk preventing the formation of better human capital, which would allow Argentines to move from the informal to the formal sector.
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For the first time since he took office last December, Argentines who disapprove of the Milei presidency outnumber those who see it favorably. However, Milei remains the most popular among Argentine politicians.
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With less tax revenue, the government would likely make further cuts to public spending on healthcare and education and to infrastructure investments. These measures could therefore compromise growth potential in the medium term and make an increase in inequality highly likely.

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Argentina: The Social Price of Milei's Austerity