Milei cuts Argentina's extreme poverty from 20% to 11%

Argentina halves extreme poverty as debate intensifies

Can a country move from runaway inflation to 3.9% growth in one year? Data cited in the Argentine debate suggests yes, though with nuances no one denies. President Javier Milei completes his first year, and the figures are hard to ignore: extreme poverty reportedly fell from 20% to 11%, inflation dropped by 22 points, and GDP grew 3.9% in the third quarter. Conversely, testimonies of pensioners without medication and families lacking basic food reveal a reality macro data fails to capture.

The shocking figure: extreme poverty down from 20% to 11%

The most repeated statistic attributes a reduction in extreme poverty from 20% to 11% to the Milei administration. A report by the Juan de Mariana Institute notes that the poverty index decreased, indigence fell, and inflation plummeted 22 points during the first year. Recent data cites general poverty dropping to 49% due to slowing inflation and rising incomes.

Some argue these figures are impossible in such a short time, claiming cuts take months to show effect and extreme poverty cannot drop so abruptly. The counter-argument is that comparisons are made against a baseline inflated by years of excessive spending, structural deficits, and money printing.

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What did Milei inherit from the previous administration?

The starting point described in the debate includes a 17% deficit, negative Central Bank reserves of $10 billion, $50 billion in supplier debt, and daily inflation fueled by short-term debt instruments. With this scenario, the only option attributed to previous governments was printing money.

The discussion on whether another path was possible relies on a recurring argument: there was neither knowledge nor room for gradual adjustment. The applied plan is described as dauntingly complex, using the chainsaw as a tool with no safety net for those left behind.

Social cost: pensioners without meds and families without food

Circulating testimonies differ in nature. One pensioner appeared at a PAMI office soaked in fuel after his medication was cut off. In Córdoba, 58% of families could not access basic foods. A journalist broke down interviewing a retiree. These are concrete cases, not statistics, which weigh differently.

The liberal response is that adjustment hurts before it heals. The metaphor used is that of a rotten tooth: intense pain for days versus permanent pain. The problem is that those in the waiting room do not always see the end of the tunnel.

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Argentina’s divide: between exile and hope

A phenomenon absent from statistics involves Argentines who left and those who returned. One testimony describes a liberal who returned convinced by Milei but, a month prior, saw the country in freefall and planned to leave again. Others claim economic exiles in Spain have no intention of returning.

The division is total. For some, the country is on the right macroeconomic track, but microeconomic improvements will take years. For others, industrial fabric is being destroyed, and indicator improvements are a financial mirage.

Next year: 90% tax cut promised

The promise launched is a 90% tax cut next year. If fulfilled, it will definitively test if the model works or if adjustment merely stabilized the currency at the cost of impoverishing the majority. Available data points to a growing economy, yet also to devastated domestic commerce and insufficient wages.

The debate remains open. Defenders say macro results justify the cost. Critics respond that an economy growing while half the population is poor is not success, but an anomaly. Meanwhile, next year has the final word.