What Milei had to say about inflation, poverty, adaptation and security

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 What Milei had to say about inflation, poverty, adaptation and security |  Presidential speech

After being sworn in as President of the Nation, Javier Milei gave a speech of more than half an hour on the steps of the Congress, in which he approved the adjustment and the “chainsaw” plan to be implemented by his government, identified as in the short term “The situation will get worse.” “, but he continued that “the fruits” will be seen later. His statements about inflation, poverty, adjustment and security.

Inflation

“It is necessary to clean up the paid debts of the Central Bank, which is responsible for 10 points of its deficit, in this way, the issuance of money will end and with it the only empirically certain and valid factor. of inflation. in theoretical terms.”

“However, since monetary policy operates with a lag of 18 to 24 months, even if we stop issuing money now we will continue to pay the costs of the outgoing financial crisis government, which issued for 20 points of GDP as it was done. in “The outgoing government is not free, we will pay for it with inflation.”

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“Due to the situation of the debts paid by the Central Bank, which is worse than the one that existed before Alfonsín’s hyperinflation, in a short time the amount of money will be quadrupled and thus bring inflation to the level of 15,000% per year.”

“There is stagflation, it is true, but it is not something very different from what happened in the last 12 years. Let’s remember that in the last 12 years the GDP per capita fell 15% in a context where we accumulated. 5000% inflation , for Therefore, we live in stagflation for more than a decade, therefore, it is the last bad drink to start rebuilding Argentina.

poverty

“We have received a country where half the population is poor, whose social fabric is completely broken, more than 20 million Argentines cannot live a dignified life because they are prisoners of a system that produces only in great poverty.”

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“As the great Jesús Huera de Soto said: “anti-poverty plans create more poverty, the only way to escape poverty is more freedom.”

“At the same time, 6 million children tonight go to bed hungry, those who walk barefoot on the streets and others who fall into drugs.”

“It should be clear that there is no possible alternative to adjustment. Nor is there room for discussion between shock and gradualism.”

“From an empirical point of view, all the gradualist programs ended badly, while all the shock programs, except for 1959, were successful.”

“From a theoretical perspective, if a country lacks reputation, as unfortunately in the case of Argentina, entrepreneurs will not invest until they see the fiscal adjustment that makes it recessive.”

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“To achieve gradualism there must be financing and unfortunately, I have to tell you again, there is no money. Therefore, the conclusion is that there is no alternative to fairness and no alternative to shock.”

“Naturally, it hurts the level of activity, employment, real wages, and the number of poor and poor people.”

Security

“Argentina has become a bloodbath. Criminals walk free while good Argentines are locked behind bars. Drug trafficking has completely taken over our streets, to the point that one of the most important cities of our country are kidnapped by drug traffickers and violence.”

“Our security forces have been humiliated and mistreated for decades. They have been abandoned by a political class that has turned its back on those who care for us. The anomie is that only 3% of crimes are convicted. It’s over. ‘go on, continue’ from criminals”.