Looking ahead to the next legislative elections in November and with the harsh result that the polls threw yesterday for the national ruling party, the Government is currently making decisions on one of the issues that most concern society: the economy. Will they decide on the position of Cristina Fernández de Kirchner or the more orthodox one? On this, the economic columnist of MDZ Radio, Carlos Burgueño spoke.
“Today is the first day of what is coming”, Burgueño advanced in One Never Knows and said that at this moment the Government, led by Cristina Fernández de Kirchner and Alberto Fernández, is deciding what economic measures to adopt to move forward.
Before, Burgueño put into context the result of the polls that showed a crushing defeat for the Frente de Todos at the country level: “It must be said that all the officialdom are losing in the world. The prime minister is doing badly in the polls. from New Zealand, Jacinda Ardern, who supposedly was the one who handled the pandemic the best. “
But in relation to Argentina, the economist marked 3 key data that would be important to understand the result of yesterday’s polls:
Argentina is 50% poor, and we are used to it being no more than 10 or 20%. “Today half the population is poor.”
It is a country in default, beyond having agreed with some creditors. “We don’t know what will happen to the IMF.”
We are in September 2021 and we have the same GDP per capita as in 2008. “In other words, we are in the same place, with the same economy of more than a decade ago.”
“In the middle we put everything you want: inflation, that we did not grow, that people are disappointed, they were disappointed with the last 4 years of Cristina Kirchner, with Macri and now with Alberto Fernández,” Burgueño explained. “Argentina’s economy has been stagnant since 2008. The numbers are these and there are chronic economic problems that this country does not solve. So, those who govern us are doing badly, at least in economic terms,” he added.
For all this, he said that “now the Government is making the decision about what is coming and they only have 2 options to move forward: an orthodox turn of the economy or it becomes radical,” said the columnist.
Measures towards orthodoxy: “Close with the IMF quickly, present a realistic and coherent budget, put together the economic variables to reduce the fiscal deficit, address the issue of tariffs, face the relationship between the Government and business in a serious and non-ideological way, end with the obstacles to meat imports. Eventually a change of names, for example with a more protagonist Sergio Massa and a Martín Redrado minister of economy. “
On the other hand, if they were for a radicalized exit, it would have to do with the fact that “as a result of a crisis within the heart of the Alberto Fernández Government, a terminal crisis, Kirchnerism takes power, the reins of the matter, and takes the management towards the economic place where Kirchnerism believes “.
In this sense, it would be “the most Axel Kicillof vision of the economy. It may also have an orthodox nuance, but a vision of what Cristina Fernández de Kirchner trusts is the direction the economy should take.” This would be: “Radicalize the relationship with businessmen, with respect to the markets, especially the foreign exchange market and the IMF issue is over. There will be no money for the Fund and if that means being international financial pariahs for much longer, it will be.”
Finally Burgueño clarified and concluded: “I am not saying that one or the other is going to be adopted. I don’t know which way they will go. Besides there is the political signal, these are economic.”