[dabauws]

how could it not be a happy story. meanwhile prior, argentinians were facing even higher poverty levels, inflation at even higher extraordinary levels, and were facing extreme wealth inequality.

At least now, their currency isn't being constantly debased, and the savings of ordinary argentinians aren't being inflated away into the hands of an irresponsible government.

[pitpatagain]

Inflation is still extremely high and poverty levels are even higher now. IMHO the pre-Milei status quo was unsustainable and the directionality of changes he's making is positive, but they are still very much deep in the Pain part of trying to break out of where they were at.

Many people really are much worse off right now. It has to be taken on faith that this is a short term suffering that will pay off later.

[laurencerowe]

While one might argue that by bringing down inflation things could improve in the long run, it's not accurate to say that previously "argentinians were facing even higher poverty levels". From the article poverty rates have gotten worse:

> The country’s poverty rate soared 11 points in the first half of 2024 to 53 per cent.

[SR2Z]

Not the guy you replied to, but pretty frequently economic stagnation is caused because folks are stuck in an inefficient local minimum.

To end a period of recession or stagnation, governments almost always have to cause unemployment (or respond to natural unemployment) to force people to change jobs.

This is why Chairman Volcker is remembered so villanously and President Reagan is lionized.

Volcker ended stagflation under both Carter and Reagan by dramatically raising interest rates for a few years.

This led to 11% unemployment, but once folks had found new jobs Reagan was able to preside over an era of strong growth.

[philipov]

I think you meant to say "local maximum". If they were in a local minimum, moving out of it would improve conditions rather than worsen them. The situation where you can't improve without going down is a local maximum.

[rendaw]

Maybe when they get to 70 or 80% unemployment they'll finally be able to move towards a more efficient minimum.

[Izikiel43]

This was because the government devaluated the fictitious dollar exchange rate, which had like 100% difference with the actual market rate, which then meant that salaries in dollars went down by a lot, though in actuality they were already down. The other thing is that poverty is now at 46%, so things are improving very fast.