in lunes, 12 de mayo de 2025
Argentine stocks soared on Wall Street Monday, with ADRs (American Depositary Receipts) climbing as much as 4% following news of a temporary truce in the US-China trade war. Energy giant YPF, along with financial firms Grupo Galicia and Banco Supervielle, led the gains, rising between 2.4% and 3.5%.
The rally came after the US and China agreed to a 90-day suspension of most tariffs, easing tensions that had rattled global markets. While investors cheered the news, Argentina’s domestic economic outlook remains bleak under President Javier Milei, whose austerity measures have deepened unemployment and poverty while his security minister, Patricia Bullrich, faces criticism for violently suppressing pensioner protests.
Market Euphoria vs. Domestic Hardship
Wall Street’s optimism contrasts sharply with Argentina’s grim economic reality. Despite the rally in Argentine assets, Milei’s shock therapy policies—including massive public spending cuts and deregulation—have failed to stabilize the economy for ordinary Argentines.
Unemployment has surged to 12.5%, its highest level in a decade.
Poverty rates now exceed 45%, with inflation still hovering near 180% annually.
Pensioners, among the hardest-hit by austerity, have faced brutal crackdowns by Bullrich’s security forces during protests against benefit cuts.
Economists warn that while financial markets may benefit from short-term speculative inflows, Milei’s policies are exacerbating inequality without delivering sustainable growth.
Bullrich’s Heavy-Handed Repression
Security Minister Patricia Bullrich, a key figure in Milei’s government, has drawn international condemnation for her repressive tactics against demonstrators. Recent protests by retirees demanding pension adjustments were met with police batons, tear gas, and mass arrests, sparking outrage among human rights groups.
Critics argue that instead of addressing the root causes of social unrest—shrinking wages, evaporating pensions, and soaring utility prices—the government has chosen repression over dialogue.
Can Milei’s Reforms Work Long-Term?
While Milei insists his reforms will eventually attract investment and curb inflation, the social cost has been staggering. The government’s refusal to raise pensions in line with inflation has left millions of retirees struggling to afford basic necessities.
Meanwhile, the financial elite—including foreign investors and local corporations—continue to profit from speculative gains, highlighting the deep divide between Argentina’s markets and its people.
Conclusion: A Two-Tiered EconomyWall Street’s optimism contrasts sharply with Argentina’s grim economic reality. Despite the rally in Argentine assets, Milei’s shock therapy policies—including massive public spending cuts and deregulation—have failed to stabilize the economy for ordinary Argentines.
Unemployment has surged to 12.5%, its highest level in a decade.
Poverty rates now exceed 45%, with inflation still hovering near 180% annually.
Pensioners, among the hardest-hit by austerity, have faced brutal crackdowns by Bullrich’s security forces during protests against benefit cuts.
Economists warn that while financial markets may benefit from short-term speculative inflows, Milei’s policies are exacerbating inequality without delivering sustainable growth.
Security Minister Patricia Bullrich, a key figure in Milei’s government, has drawn international condemnation for her repressive tactics against demonstrators. Recent protests by retirees demanding pension adjustments were met with police batons, tear gas, and mass arrests, sparking outrage among human rights groups.
Critics argue that instead of addressing the root causes of social unrest—shrinking wages, evaporating pensions, and soaring utility prices—the government has chosen repression over dialogue.
While Milei insists his reforms will eventually attract investment and curb inflation, the social cost has been staggering. The government’s refusal to raise pensions in line with inflation has left millions of retirees struggling to afford basic necessities.
Meanwhile, the financial elite—including foreign investors and local corporations—continue to profit from speculative gains, highlighting the deep divide between Argentina’s markets and its people.
The surge in Argentine stocks may offer temporary relief for investors, but for most Argentines, Milei’s economic experiment has brought only pain. Without a shift toward policies that protect workers and retirees—rather than just Wall Street portfolios—the country risks deeper social unrest and economic instability.
For now, the government’s alliance with financial markets remains strong, but its legitimacy among voters is crumbling. If poverty and repression continue to rise, even a booming stock market won’t save Milei’s presidency.
