Since December 2023, Javier Milei’s government has enacted reforms that significantly reshape Argentina’s public policies. His “chainsaw” approach aims for aggressive fiscal adjustment, focusing on slashing state spending in critical areas such as public health, pensions, and social benefits for individuals with disabilities, reports 24brussels.
The repercussions of these policies are felt acutely among the most vulnerable populations, inciting widespread concern and social mobilizations. The deep cuts to the healthcare budget, nearly 50% in real terms compared to 2023, have severely undermined healthcare infrastructure and care quality.
Key institutions, including the National Cancer Institute and the National Cardiovascular Diseases Institute, have been either dissolved or diminished to minor departments within the Ministry of Health, significantly limiting their operational capacity and focus on specialized research and treatment. The suspension of critical national immunization campaigns has led to a rise in preventable disease outbreaks, including measles, tuberculosis, and an alarming increase in HIV and syphilis cases, especially as the public system is the primary care provider for most of the population.
Healthcare workers are also facing substantial hardships, with over 2,000 mass layoffs reported, including many professionals from essential rehabilitation and disability programs. The Incluir Salud program, for instance, has seen defunding, leaving over 180,000 beneficiaries without coverage and leading to the dismissal of 450 specialized staff members. Furthermore, the elimination of free medications for retirees and pensioners through PAMI has introduced barriers, requiring beneficiaries to demonstrate financial hardship to access necessary medications.
In defense of these measures, Milei’s administration argues that previous public health spending was inefficient and highlighted redundancies and misuse in various services. They frame healthcare as a marketable service rather than a universal right secured by the state, thereby encouraging increased private sector participation and corporate donations.
Measures Affecting Retirees and Pensioners
Retirees and pensioners are among the groups most adversely affected by the current reforms. Since Milei assumed office, protests over inadequate income and delayed payments have become common. The National Social Security Administration (ANSES) has faced severe budget cuts, delaying benefit processing by up to a month.
Recently, the president vetoed a law that proposed a 7.2% pension increase, reinstated a pension moratorium, and expanded a pension bonus—key resources aimed at counteracting the declining purchasing power of the elderly. The moratorium is particularly impactful in Argentina, where many workers remain informal and cannot substantiate the 30 years of contributions necessary for retirement. This mechanism once permitted workers to “purchase” missing years for a dignified pension.
Milei justified the veto on the grounds of fiscal balance, asserting that these increases would escalate public expenditures by trillions of pesos and threaten the administration’s economic priorities. He and his administration have characterized opposition proposals as irresponsible, accusing critics of politicizing what they term an unsustainable pension system.
These austerity measures have exacerbated financial and social conditions for retirees, who are now grappling with persistent inflation that diminishes their income and restricts access to essential goods and services. Current statistics indicate that over 70% of retirees live below the poverty line, a dire situation fueling ongoing protests.
Social and Economic Impact
The reforms associated with Milei’s zero-deficit strategy have severely strained the foundations of Argentine society, particularly public health and social security systems. Diminished access to these essential services aggravates inequality, indirectly benefiting private sectors while heightening the vulnerability of millions.
Unions and social organizations have repeatedly condemned the deterioration resulting from these policies, holding the government accountable for the rollback of social rights and welfare. The erosion of healthcare personnel and budget not only reduces coverage but compromises service quality, impacting the daily lives of elderly individuals and those with disabilities, who form the primary demographic reliant on public systems.
The increasing commodification of healthcare and pension services jeopardizes social cohesion and accentuates the economic divide. The persistent rise in prices, stalling wages, and pension devaluation create conditions for social exclusion, nurturing an environment rife with conflict and structural poverty.
Conclusion
The austerity measures enforced by Javier Milei’s administration have deepened the public health crisis and worsened conditions for retirees and those with disabilities. While framed as a pursuit of fiscal balance, these policies curtail fundamental rights and bolster social vulnerability, marking a transition toward the commodification of essential services.
Amid inflation and precarious labor conditions, Argentina faces a crucial challenge to restore a model that guarantees health and social security as universal rights imperative for maintaining social justice and national cohesion.
