MercoPress. South Atlantic News Agency

The Guardian highlights the hardships Argentines go through under Milei

“You’re either poor or rich,” The Guardian highlighted, quoting an interviewee. Photo: Luis Robayo/AFP

Despite President Javier Milei's success in significantly lowering annual inflation from over 211% in 2023 to 32% by September 2025, a majority of Argentines are struggling as their purchasing power has collapsed under the administration's “chainsaw” austerity program, the London outlet The Guardian noted.

Average incomes have fallen sharply, leading to a spike in household debt. While the poverty rate recently eased to 31.6%, it had previously climbed above 50%.

Milei's policy of selling reserves to prop up the peso has kept the currency “artificially strong,” making imported goods cheaper but simultaneously devastating domestic industries.

Sectors like textiles are facing a “great depression” due to decreased domestic purchasing power and increased competition from cheaper imports.

Between 205,000 and 250,000 formal jobs have been lost, primarily in construction and manufacturing, and over 18,000 businesses have closed. This has driven up the informal labor rate to 43.2%.

Despite this scenario, Milei's La Libertad Avanza (LLA) secured a sweeping victory in the recent midterm elections, a result that surprised even the President, given the economic hardships and corruption allegations.

Voters are sharply divided: Some, like delivery rider Francisco Jiménez, continue to support Milei, arguing he needs more time and that the opposition is worse. Others, like mobile phone shop owner Nicolás Pedrosa, deeply regret their vote, lamenting that “the middle class no longer exists; you’re either poor or rich.”

The Oct. 26 election took place after the US announced a US$40 billion bailout for Argentina, with continued aid reportedly conditional on an LLA victory. Milei's government previously secured a US$20 billion loan from the International Monetary Fund (IMF).

LLA and its ally, the PRO party (led by former President Mauricio Macri), now form the largest bloc in Congress. However, they still lack a minimum majority, meaning Milei must seek further alliances to pass his planned labor, tax, and pension reforms.