> A sharp increase in the cost of living IS inflation, which is precisely what Milei is laser-focussed on ending. Yeah. We're just used to the usual "local" in

> A sharp increase in the cost of living IS inflation, which is precisely what Milei is laser-focussed on ending. Yeah. We're just used to the usual "local" inflation caused by the constant devaluation of the peso, where workers have to constantly fight to even maintain their purchasing power. Of course, they end up lagging slowly more and more. But, if you measured the cost of living in US dollars up until December 2023, it was roughly the same. This time, following the disregulation we had a sharp spike in the price of groceries, in dollars. It's a rise too steep for workers to even try to compensate in their salaries. Worse than that, even if company owners wanted to compensate it (a starving population is not an effective work force), they just can't. People brought their spending to a bare minimum to even stay alive, so most businesses don't even have enough income to raise wages. Some people think we're heading to a depression like the US had in 1930 > Argentina’s economy is largely a mirage fuelled by cycles of borrowing, default, and inflation. It will come crashing down sooner or later. I’m rather sceptical that Milei will manage to end the cycle, but I’ve yet to understand what the suggested alternative to trying is. I agree. However, he's trying to stop the cycle by stopping the total cash flow. The risk is collapsing the entire country in the process. > I agree that people are suffering in Argentina right now, and the blame for that largely rests on the shoulders of those responsible for decades of economic mismanagement. The only question is whether they will still be suffering in five / ten years or not. Argentina could be the Poland of 2035 - or it could be the Venezuela. Some economist predict that in the next few months poverty will reach 70%. Unless they are totally wrong, even 50% doesn't leave you more than a few months of economic shock.