\u201cWe\u2019re not doing very well at the moment,\u201d admitted Jim\u00e9nez.<\/p>\n
The days leading up to the vote were widely described as the lowest point of Milei\u2019s nearly two years in power, marked by an economic downturn and corruption allegations<\/a>. Even the president himself admitted to being surprised by the sweeping result.<\/p>\n Jim\u00e9nez argues that Milei needs more time. He said that, despite the setbacks, he voted for the president\u2019s party because the opposition had \u201cbeen in power too long and done too much harm\u201d.<\/p>\n Argentinians such as Jim\u00e9nez, who are struggling to make ends meet, are now the majority.<\/p>\n After taking office in December 2023<\/a>, Milei, an economist and former TV pundit, launched a deep \u201cchainsaw\u201d austerity plan, cutting federal spending, freezing wages and pensions, halting public works and slashing subsidies.<\/p>\n To meet his zero-deficit target, he also introduced a \u201cshock therapy\u201d approach to the peso, initially devaluing it by almost 55%.<\/p>\n On one hand, the libertarian managed to bring inflation down from more than 211% in 2023 to 32% annually by September 2025 \u2013 still high by global standards, but a level Argentinians had not seen in years.<\/p>\n On the other hand, average incomes have fallen sharply, dragging down purchasing power, while household debt has risen and the poverty rate climbed above 50% before recently easing to 31.6%.<\/p>\n A man walks past graffiti reading \u2018Milei swindler\u2019 in Buenos Aires. Photograph: Juan Mabromata\/AFP\/Getty Images<\/p>\n Nicol\u00e1s Pedrosa, a 40-year-old mobile phone shop owner in Buenos Aires, voted for Milei in the 2023 presidential election. \u201cToday, I deeply regret it \u2026 I wanted change, but it was too drastic,\u201d he said.<\/p>\n \u201cThe middle class no longer exists; you\u2019re either poor or rich,\u201d said Pedrosa, adding that customer traffic in his shop practically disappears by the 15th of the month as many people\u2019s salaries have run out by then.<\/p>\n Four months ago, in an attempt to diversify and boost sales, he started selling perfumes and incense alongside the usual phone cases and chargers. \u201cYou have to be an all-rounder to survive these days,\u201d he said.<\/p>\n After the initial devaluation of the peso, one of Milei\u2019s main measures to curb inflation was burning through reserves to sell dollars and prop up the currency\u2019s value \u2013 which, according to many analysts, has left the peso artificially strong<\/a>.<\/p>\n To keep selling dollars, the president turned in April to a $20bn loan from the International Monetary Fund \u2013 $14bn of which has already been disbursed \u2013 and recently to a $40bn bailout from the US.<\/p>\n The president has also lifted restrictions and lowered tariffs on imports, a move that is driving domestic industry into a \u201cgreat depression\u201d, according to Luciano Galfione, the president of Fundaci\u00f3n Pro Tejer, which represents the textile sector.<\/p>\n Textile manufacturers faced two problems, he said: as \u201cthe purchasing power of society has fallen dramatically\u201d, people are buying fewer clothes, and those who can still afford them often opt for imported products, which, with the \u201ccheap\u201d dollar, have become more affordable.<\/p>\n Even one of Argentina\u2019s greatest passions is being affected. Domestic wine sales \u2013 which account for about 70% of production \u2013 fell by 17.1% in August, according to a report<\/a> by the Center for Argentine Political Economy (CEPA). With the stronger peso, Argentine wine has also become more expensive abroad, and export volumes between January and August were down 8.4% from the same period last year.<\/p>\n A protest against cuts to pensions and benefits at the Argentine National Congress in Buenos Aires, now a weekly demonstration. Photograph: Catriel Gallucci Bordoni\/NurPhoto\/Shutterstock<\/p>\n \u201cWe\u2019re not against imports; what we don\u2019t agree with is having to compete under such absolute inequality,\u201d said Galfione, who estimates the textile sector alone has lost 300 companies and 12,000 jobs since Milei took office.<\/p>\n Across all sectors, between 205,000 and 250,000 formal jobs \u2013 those subject to labour laws \u2013 have been lost in Argentina over the same period, mostly in construction and manufacturing, and about 18,000 businesses have closed.<\/p>\n \u201cWhen formal jobs are lost, people have to find some way to earn an income to survive. And what usually happens is that informality increases,\u201d said Roxana Maurizio, a professor of labour economics at the University of Buenos Aires, adding that informal workers now account for 43.2% of the labour force and that half of them don\u2019t earn enough to get by.<\/p>\n Despite most socioeconomic indicators showing no improvement in living standards, the \u201ccheap\u201d dollar, somewhat contained inflation, rejection of the opposition and fears of losing the US bailout were widely seen as key factors behind Milei\u2019s victory<\/a>.<\/p>\n As a result, the president\u2019s party went from a modest presence to the largest bloc when combined with the seats of the centre-right PRO, the party of former president Mauricio Macri, which has already allied itself with Milei.<\/p>\n The bloc still falls short of the minimum majority needed to pass reforms, and the president already has three in mind \u2013 labour, tax and pensions \u2013 meaning Milei will have to seek further alliances.<\/p>\n \u201cHe can\u2019t fix the economy overnight when it\u2019s been a mess for years,\u201d said Jim\u00e9nez. \u201cI know people who are unhappy who voted for him [in 2023] and thought we were going to become a world power in a year, but he never said that.\u201d<\/p>\n Quick GuideContact us about this storyShow The best public interest journalism relies on first-hand accounts from people in the know.<\/p>\n If you have something to share on this subject, you can contact us confidentially using the following methods.<\/p>\n Secure Messaging in the Guardian app<\/p>\n The Guardian app has a tool to send tips about stories. Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs. This prevents an observer from knowing that you are communicating with us at all, let alone what is being said.<\/p>\n If you don’t already have the Guardian app, download it (iOS<\/a>\/Android<\/a>) and go to the menu. Select \u2018Secure Messaging\u2019. <\/p>\n SecureDrop, instant messengers, email, telephone and post<\/p>\n If you can safely use the Tor network without being observed or monitored, you can send messages and documents to the Guardian via our SecureDrop platform<\/a>.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/11\/1762029853_392_4000.jpg\")
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