Low salaries and lower spending, a plan for the last year in Macrie



The recession of the economy is due to the fact that the withdrawal of public and private domestic consumption was weighed more than an increase in exports. This work resulted in the work of the Mediterranean Foundation, which states that it is in all regions of the country "internal, private and public engines were negative in the third quarter of 2018" reducing family incomes and reducing public spending in the provinces.

In the genesis of the neoliberal model used by the government with the manuals of the International Monetary Fund, it is changing the root of the productive matrix of the state, lagging behind in growth due to higher internal demand (family consumption) and export substitution, which would allow the creation of dollars needed for payment debt services that increased disproportionately in the context of the economy of Mauritius Macrie.

In order for the program to work, it is necessary to cause a steep decline in real wages both in pesos (to prevent domestic consumption) and in dollars (to lower wage costs and gain external competitiveness). Faced with the inability to reduce the nominal value of wages, as was done between Fernande de la RĂșa's administration with Minister Domingo Cavallo, on this occasion, a decision was made to trigger an inflationary process that causes higher prices than wages.

In the three years of management, the loss in the purchasing power of wages reached 17.3% for the average of registered workers, taking into account the cumulative inflation of 166% in the last three years and the improvement in median wages by 120.6%.by the work of the Statistical Institute of Workers (IET).

For the Mediterranean Foundation, in general, the average, In 2018, workers lost 11% of real wages, year on year higher than in 2016 (-9.6%) and 2014 (-3.6%). This year, it is very likely that it is marked by a conflict between trade unions, before the election year and with the union's attempt to reimburse the actual salary, in which the salary can be beaten from 1 to 3 percentage points, add

After losing 11%, after the process of the union conflict, one, two or three points will be reimbursed. For the authors of the work, the Government's objectives regarding inflation and the real exchange rate will not be compromised.

Not only will these goals be protected if the wage growth projection is taken into account, but this year will hardly be accompanied by inflation, but progress will be made in consolidating the export target.

In order to achieve a positive dollar balance, the Argentine economy must first stop demanding the foreign currency for its operations and, secondly, increase its production through the trade balance.

In order to reduce demand, Macrie's strategy is to maintain a recession rate in the economy, which does not require the import of raw materials for production and to generate the largest amount of export balance sheets of producers, although it is never in the center. a plan to strengthen industrial production, either for supplying the domestic market or for exporting value added. Simply, the strategy is that the industry does not require dollars.

Another way lower demand is expected to offer a higher interest rate in the pesos than the expectation of devaluation, so that savers decide to stay in the pesos and not buy foreign currencies for accumulation. LA high level also helps with a recession strategy, so it is not expected that it will drop significantly over the course of the whole year.

The generation is also in two ways: the primary agricultural exports of minerals and energy, and the attractiveness of tourists.

For the entire government plan, it is essential to maintain low wages, low consumption, low imports, cheap wages to benefit businesses that offer services to tourists. The Argentine economic crisis over the past three years has led to a change in the model, which means a shift from Argentina, which has grown as a result of domestic demand, government investment in research and development, and the private sector in expanding industrial capacity in Argentina. who will only strive to create dollars for paying the debt, which was deliberately created against the interests of the state.


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